tpm2 funds management

Trade Promotion ManagementPart Two: Funds Management

SAP CRM 2007Detailed View Presentation

© SAP 2007 /

1. Business Process Overview2. Current Solution3. Appendix

Business ProcessOverview

Board /Executive

Marketing

Sales

Logistics

Financials

StrategicTargets

BrandTargets

BrandPlan

MarketingPlan

SalesTargets

InvestmentPlan

TradePromotion

Plan

DemandPlan

SupplyNetwork

Plan

ProductionPlan

Top Down SalesPlan

Bottom Up SalesPlan

Financial StatementPlan

Reconciliation

Consumer Products Business Process

ClaimsManage-

ment

FundsManage-

ment

Drill down of TPM Business Process

Develop Overall Channel and Customer Plans:•Planning Customer

•Total and Target Volume

•Product Categories

•Month

•Profitability

Develop Key Customer/Product Category:•By period, events, terms and conditions

•Agreements

FundsManagement

Trade PromotionPlan:•Long-term

•Short-term

•Tactics

•Objectives

•Templates

ClaimsManagement

BPS

CRM

Inputs•Brand Plan

•Category Plan

•MarketingCalendar

•HistoricalAnalysis

AgreementAcceptanceandPromotionPlan

Applications

TradePromotion

Plan

Top Down Sales Plan

Bottom Up SalesPlan

ClaimsManage-

ment

FundsManage-

ment

1. Headquarter PlanningConsensus PlanSales BudgetingSchedule Creation

Process Overview:

2. Account PlanningPre-analysisEvent PlanningPromotion Planning

3. Sell-in & NegotiationProposal generationDemand planningFlexibility

5. Evaluation &Analysis

KPI ReportingSyndicated DataFunds Tracking

4. Retail Execution,Validation & Settlement

FSR supportInvoicingPayments


Process Overview:







Trade FundsManagement

Budget tracking

Planned, Committed,Accrued


Planned,Committed,Accrued

Budget

TradePromotion

Management

Process Overview:







Finalization

Prepayments

Trade ClaimsManagement

DeductionsInvoicesDirect Payments

Trade ClaimsManagement

Schedule Payments


© SAP 2007 /


Current Solution


Process Overview:








Budget tracking

Planned, Committed,Accrued


Planned,Committed,Accrued

Budget

TradePromotion

Management

Trade Funds Management

Trade Funds Management (TFM) is a CRM based application that enables you to setup and manage fund programs and funds, thus allowing to plan and track howyou spend your money for trade.

TFM is integrated into:

TPM Trade Promotion Planning

MDF Market Development Fund Initiatives

CRM Claims Management

SAP NetWeaver Business Intelligence

ERP Financials (CO-PA, Accruals)

APIs to integrate external business planning and forecasting tools


Trade Promotion Plan

Top Down Sales Plan

Bottom Up Sales Plan

Claims Management

Funds Management


Plan, fund and track trade promotion spending:

Multi-dimensional set-up of discretionary budgets with the framework to support performance-based live accruals

Detailed tracking and auditing of all funds transactions

Full budget check capabilities for planning and settlements

Full checkbook capabilities

Full accrual management capabilities

Funds Management Main Features

Multi-dimensional set-up of discretionary budgets with the framework to supportperformance-based live accruals

Definition of fund plansManual set-up and allocation in CRMImport from external planning and forecasting tools like SAP BPS

Detailed tracking and auditing of all funds transactionsSarbanes-Oxley and FASB accounting standard compliantFull visibility into planned, committed, accrued, settled, paid, etc. valuesFund checkbook view for accounts, categories and organization units

Full budget check capabilities for planning and settlements

Full checkbook capabilities

Full financial accrual management capabilitiesThe accrual management allows detailed bottom-up accrual calculations based onpromotions or fund budgets, and triggers them in ERP FI/CO

© SAP 2007 /

Funds Management: Current Solution

Trade Funds ManagementFund Types and Allocation RulesFunds Plans, Funds and Budget DistributionFunds Determination and AccrualsPeriod-end Processing

Funds Management Process

Fund Type

A fund type defines:Fund category (e.g. fix/variable)Whether budget is accrued and how it is accrued

Calculation frequencyCalculation methodAccrual Base

All funds that are tied to a certain fund type will follow the pre-defined rules of that fund type

Fund types are set-up for different purposes to separately track budgets within the FundsManagement process. Examples for fund types are:

Audio/Video, Base, TravelBill back, Display, Off-Invoice

Fund Type - Configuration

Fund Category:Fixed vs. Variable

Accrual profile:Fixed vs. Variable

Expense Type is a categorizationaccording to the purpose, e.g.

DisplaysAdvertisingShelf space

Assignment Expense Type toFund Type done in IMG

Fund Type – Configuration (continued)

Customer andProduct Dimension

Fiscal year variantAnd currency

Fund attribute matches the fundattribute assigned to the fund type.

Territory check Number rangeFor Fund Postings

Associating Funds Plan to a Promotion

TradePromotion

TradeSpends Product

Funds Plan

Funds Plan Association to a TP

Funds Plan group funds for a fiscal year

Funds Plan is an attribute for a TP and this attribute is laterused in Fund Determination

Funds plan for a TP can be either:Determined– BAdI:

– Default implementation to use Currency and Sales Area– Default Funds Plan if unique

F4 help– Search on multiple attributes of the Funds Plan

– Only “Released” Fund plans to be retrieved by search

Fund Association on a Trade Promotion:Different Levels

TradePromotion

TradeSpends Product

Funds Plan

Fund

Fund

Fund

Fund

The level at which funds are associated on a promotion is driven by how the funds aresetup -

Brand specificTrade Spend specific……

Funds Can Be Associated To One Of The 4Levels

A customizing setting to determine at what level funds can be associated

Promotion Type Fund Association LevelPrice Reduction Trade Spend

Scan Based Product

Customizing Setting: Fund Association Level

When a Promotion is created, the system looks up the customizing setting to determinethe fund association level

UI will be dynamic and display fund information only at the appropriate level- Ex: If Fund Association Level is ‘Product’, then user will not see any fund

information at the Trade Spend level.

Default is Trade Spend level if customizing setting is not maintained

Funds can be associated at only one level (exception – discussed in Fund Usages)

Fund Association at Root Level

Fund Association at Product Level

New Fund Field on Product Group,Product, Product Category,Product Segment Assignmentblocks.

In Edit mode for the assignmentblock, F4 Value for this field willinvoke the fund determinationprocedure

Fund Association at Trade Spend Level

New Fund Field on planning assignmentblock

In Edit mode for the assignment block, F4Value for this field will invoke the funddetermination procedure

Fund Association at Intersection Level

A new assignment block on the trade promotion overview page. Editable only if“Fund Association Level” is set to ‘Trade Spend – Product’

The cells where Fund information is visible is editable. Fund determination isfired whenever Value Help is accessed

Expense Types are displayed as columns instead of Trade Spends

Billback Event Related Off-InvoiceGatorade Sport F1 F3 F4Gatorade Energy F1Tropicana OJ F2 F5

Star CookiesStar Chocolates

Star Chips

Fund Association Can Be Manual or Automated

Key Account Managers can associate funds manually at the appropriate level

F4 Value help for funds will display a result based on fund determination

Funds association can be automated as well when trade promotionstatus is set to “Released”

Display 10 funds in the F4 ValueHelp. Provide navigation to next10 and so on

Associate Funds At The Appropriate Level

When Fund Determination is invoked via Automation:

The system determines the funds at the intersection level

- Errors if fund cannot be determined

Looks up the ‘Fund Association Level’ customizing setting to associate funds atthe appropriate level

Invoke the complete FundDetermination procedure for eachof the cells

Billback Event Related Off-InvoiceGatorade Sport F1 F3 F4Gatorade Energy F1Tropicana OJ F2 F5

Star CookiesStar Chocolates

Star Chips

Funds Plan

A framework for the funds set-up defines fundamentals like:validity periodcurrencyand others attributes that all funds have in common

Group funds to a logical unit, e.g. US Trade Funds 2007

Create Funds PlansManually or by copying of existing Funds PlanFor different areas and purposes

Funds Plan

Fund

Funds Plan Overview Page

Available Columns:• Employee Responsible• Account Hierarchy Node• Created on• Created by

Navigate to FundsOverview Page

Funds

A fund specifies a container for budgets

Available for a specific reason during a specific planning period, e.g. KrogerStar Cookies

Fund is identified byFunds PlanFund TypeFund Attributes

Fund

Budget

Fund Overview Page

Fund Attributes section willdynamically show only thoseattributes which are requiredfor the Fund Type selectedabove.

Additional customized key values can be displayed here (Checkbook configuration)

Fund Overview Page (Assignment Blocks)

Navigate to FundUsage OverviewPage

Navigate toBudget PostingsOverview Page

Navigate to ApplicationObject Overview Page.

Set-up Funds Plan

A Finance personnel createsa funds plan.Funds Plans may also becreated via an externalapplication

User can add additionalinformation, e.g. maintainnotes, attach documents,assign involved parties,select sales area

Change Funds Plan Status

New

Closed

Archived

Archive

ReleasedLocked

Release

CloseClose

Release

Lock

Release

Finance personnel changes the status toReleased in order to assign funds.

Create Fund

A Finance personnelcreates a fundFunds may also becreated via an externalapplication


Fund Status

Finance personnel changes thestatus to Released in order tomake the funds available forconsumption.

Fund Status

NewInitial status when a fund is created.You cannot post any budget yet.All fields are still modifiable and you can still delete the fund.

PreliminaryYou can switch a fund from status [New] to [Preliminary], to start setting upbudgets.Fund is not yet consumable.You cannot delete it any more, but need to cancel it instead.Preliminary funds are not active for accruals yet.

ReleasedOnce a fund is released, all transactions are allowed – you can prepay, plan,accrue and settle from the fund.Note that you can cancel a fund only after you have zeroed out the budget.Accruing funds are now active for the accrual process.

Fund Status

LockedA released fund can be locked at any time, to temporarily disallow budget changesand budget consumptions.Accrual processes continue, and fund usages for locked funds can still be closed.The fund can be released again by reactivating it.

CancelledA preliminary fund, which for some reason is not to be released, can be canceled.When the fund was released before, you need to manually set the budget to zerobefore.The fund can be reused by reactivating it (set status to Preliminary).

ClosedFunds are closed at the end of their life cycle. This can be a manual or automatedprocess.As part of standard, there will be no automatic process to close funds.

Mass Copy of funds

A finance personnel can copyover the funds of an existingFunds Plan, with or without theinitial budget or actual usedbudget, into a new Funds Plan.

Initial Budget:three possible values:

None - no initial budgetpostings.Initial Budget - the initialbudget posting is equal tothe total budget which wasassigned to the fund.Actual Consumption - theinitial budget posted to thenew fund is the total“Spent” amount of the fundbeing copied.

Budget

A budget can be either allocated or accrued on any level in the hierarchy(customer, product, and marketing organization) or combinations of these.

Budget Postings are used to create or change budgets in the fundsBudget Updates are used to deposit or withdraw budget from a fund, initially orat a later point in time.With Budget Transfers budget can be distributed between different funds.

Budget Update Overview Page

Available Columns (in Personalization)- Funds Plan ID- Funds Plan Description- Accrual Balance- Approved Claim- Available-to-Spend- Chargeback Balance- Expensed- Expired- Pending Budget- Prepaid Balance- Prereserved- Remaining Cash- Reserved- Settled

First line item is defaulted if budget posting has been createdfrom the fund overview page

Distribute Budget –> Budget Update

In order to deposit budgetin funds the Financepersonnel creates abudget posting.Funds may also be filledvia an external application.


Star Chips

External Funds services – functionalitysupported

Mass creation of funds plans

Mass creation of funds

Change of funds plans

Change of funds

FPO (create funds, update budget through the fund postings API)

BPO (create funds, update budget through the budget postings API)

Funds Plan Overview after Budget Update

Budget has been distributed tothe selected funds in thebudget update.

Star Chips

As seen on previous slideshowing the Budget Update,the amount of the BudgetPosting line item matchesthe amount on the FundsPlan Overview.

Budget can be visualized inthe Fund Checkbook aswell, as seen in the nextslide

Funds Checkbook

CheckbookAn overview of all the key figures that are calculated based on the value categoriesmaintained for a fundA financial report that rolls-up all of the value categories at a certain level

Key figures in Checkbook

Use in TPMUpdated ByValue CategoryKey Figure

Budget – usually provided for a fullfiscal year.

Budget PostingBudgetBudget

Budget amount requested for a TP,which is not yet approved.

Trade PromotionPrereservedPrereserved

Budget amount reserved for TP, whichare approved and released. When aTP is approved, Prereserved isdecreased and Reserved is increased.

TPReservedReserved

Amount financially accrued.Settlement, AccrualRun

Accrual BalanceAccrual Balance

Amount approved on a claim.Replaces the Pending amount.

ClaimApprovedClaimClaimed

Amount is settled, i.e. the settlement issent to ERP. At the same time,Expenses are debited andcorresponding accruals are released.

SettlementSettledSettled

Amount written off. This is a specialtype of expense.

Write-Off(WrittenOff)Write-Off

Amount prepaid.SettlementPrepaid BalancePrepaid

Exchange Budget between funds – BudgetTransfer

A Finance personnelcreates a budget transferto exchange budgetbetween funds (morebudget for Rema Drinkneeded).

User can add additionalinformation, e.g.maintain notes, attachdocuments, assigninvolved parties, selectsales area

Guided flows availablefor the budget transfer

Budget Transfer - wizard

Budget Transfer Overview Page

Available Columns (in Personalization)- Budget-Funds Plan ID- Funds Plan Description- Transfer %- Expired- Approved Claim- Available-to-Spend- Chargeback Balance- Expensed- Pending Bdgt Reduct.- Prepaid Balance-Prereserved-Remaining Cash- Reserved- Settled- Written Off- Accrual Balance

Fund Postings

All value flows are captured in Fund Postings, like e.g. changes to budgets,planned and reserved values, prepay and accrual balances, and expensed andsettled amounts

Changes to budgets, fund usages or actuals are captured in Fund Postings,producing a line item based audit trail like in a financial system.

$ +100.000 Budget Update

$ - 15.000 Trade Promotion, Spend Type Billback -> Budget reserved

$ - 10.000 Prepayment

$ - 5.000 Direct Payment

$ + 20.000 Chargeback

Fund Posting Overview Page

Available Columns (in Personalization)- Transaction Amount- Transaction Currency- Budget Expiration Date- Account- Account Hierarchy Node- Fund Usage Type- Distribution Channel- Division- Expense Type- Fund Type- Fund Usage Description- Fund Usage ID- Product- Product Group- Territory- Service Organization

Attributes (Value categories)

Monies are attributed to the following ‘states’:

Accrual Balance

Approved Claim

Budget

Chargeback Balance

Expensed

Expired

Pending Budget Reduction

Pending Chargeback

Pending Claim

Pending Prepayment

Pending Prepayment Reduction

Pending Write-Off

Prepaid

Prepaid Balance

Prereserved

Released to Settle

Reserved

Settled

Write-Off

Funds Management Values Flows

Tracks the movement of money (value) in various processes

Budget transfers and update

Budget reservations

Prepayments

Accruals

Claims

Settlements

Chargeback

Write-off

TradePromotionlifecycle Accrual

run

Prepayments

Claimsubmission

Settlement

Budgetupdate

Tradeplanning

Business Process and Value Flows

BudgetUpdate

(F1)

F1Fu

nd V

alue

Cat

egor

ies

Budget Prereserved Reserved OpenClaim

PendingClaim

ApprovedClaim

Releaseto Settle

Settled

TPM

1Fu

nd U

sage

Val

ue C

ateg

orie

s

Setup TP& approve

(TPM1)

ApproveTP

(TPM1)

CreateClaim

Routefor

Approval

ClaimApproved

ClaimSettled

Value Flows

Business ProcessRelease

TP(TPM1)

Fund Usage

Fund usages are used in Funds Management to reserve parts of fund budgets.All fund consumptions are represented in the system by fund usages.

The funds can be reserved for:ClaimsSettlementsPrepaymentsDirect PaymentsReservationsChargebacks

Fund usages contain accrual information, such as the accrual profile, accrual dates,and the current accrual balance.

Fund Usage

Fund Usage is the consumption of a Fund through:

Trade Promotion

MDF initiatives (reservations)

Fund Usages can be claimed against, accrued andclosed after the last claim is made to returnunconsumed budget and accruals.

Fund Usages Concept

Fund 1

Product: ChipsCustomer: Gro4U

Budget: $100K, Reserved: $0

Fund 2

Product: CookiesCustomer: Gro4U

Trade Promotion “TP1”: Gro4U Miami, 2007-09-01 to 2007-09-30

$17,500

$12,500

SpendtypeBillback

Fund 2

Fund 1

Fund

10,000 cases$1.75 / caseCookies

10,000 cases$1.25 / caseChips

Planned ScanVolume

PriceReduction

Product

TP1 – Chips$12,500

TP1 – Cookies$17,500 Budget: $200K, Reserved: $0

Budget: $100K, Reserved: $12,500

Budget: $200K, Reserved: $17,500

Fund Usages

Fund Usages Provide The Ability To TrackConsumption Against A Promotion

Fund 1


Budget: $100K, Reserved: $0,Settled: $0

Fund 2



$17,500

$12,500

Spend typeBillback

Fund 2

Fund 1

Fund



Planned ScanVolume

PriceReduction

Product

TP1 – Cookies$17,500

TP1 – Chips$12,500

Budget: $200K, Reserved: $0,Settled: $0

Budget: $100K, Reserved: $12,500,Settled: $0

Budget: $200K, Reserved: $17,500,Settled: $0

Fund Usages

Claim 1: Gro4U Miami 2007-10-15

$16,000

$11,000

Amount

CookiesBillbackTP1

ChipsBillbackTP1

ProductTrade SpendPromotion

$11,000

$16,000 Budget: $200K, Reserved: $17,500,

Settled: $16K

Budget: $200K, Reserved: $12,500,

Settled: $11K

Consumption against apromotion

Fund Usage Overview Page

Available Columns (in Personalization)- External- Fund Type- Product- Product ID- Product Category ID- Product Group- Product Group ID- Pending Claim- Pending Prepayt Redn- Pending Prepayment- Pending Write Off- Prepaid- Prepaid Balance- Prereserved- Chargeback Balance- Expensed- Accrual Balance- Released-to-Settle- Written Off- Account Hierarchy- Account

Fund Usages Ensure Reservation Of FundBudget

Trade Promotion “TP1”: Rema Store, 2007-09-01 to 2007-09-30

$17,500

$12,500

SpendtypeBillback

$10,000

$5,000

Spend TypeDisplay



Planned ScanVolume

PriceReduction

Product

Fund 1

Product: ChipsCustomer: Gro4UFund Type: Null

Budget: $100K, Reserved: $0

Fund 2

Product: CookiesCustomer: Gro4UFund Type: Null

Budget: $200K, Reserved:$0

Budget: $100K, Reserved:$17,500

Budget: $200K, Reserved:$27,500

Billback Fund Usages

TP1-ChipsPotato/Display$5,000

Display Fund Usages

TP1-CookiesChoc/

Display$10,000

TP1-CookiesChoc/BB$17,500

TP1–ChipsPotato/BB$12,500

Planning Grid and Fund Usage

Planning Grid and Fund Usage shouldalways be in-syncFund Usages are created finally from theinformation in the planning grid

Customizing setting to define mappingbetween Expense Type and Key Figure to beused in creating fund usages.

Fund Usages

Sample Customization Setting

Planning Grid

0BBSCBB-Scan

0DISABDisplay

Key FigureExpense Type

Fund Usage Structure

Fund: F2Spend: BillbackProduct: GatoradeCustomer: Kroeger

Fund: F1Spend: ERProduct: GatoradeCustomer: Kroeger

Fund: F3Spend: BillbackProduct: TropicanaCustomer: Kroeger

Fund Amount Fund AmountGatorade Sport F2 $2,400 F1 $1,000Tropicana OJ F3 $4,000Gatorade Energy F2 $3,100 F1 $2,000

Billback Event RelatedTP1 forKroegerOttawa

F u n d U s a g e s

F u n d U s a g e 1

C u s t o m e r K r o g e r O t t a w a

E x p e n s e T y p e E v e n t R e la t e d

R e f O b j e c t T P 1

F u n d U s a g e 1 I t e m ( s )

F u n d P r o d u c t A m o u n t

F 1 G a t S p o r t $ 1 , 0 0 0

F 1 G a t E n e r g y $ 2 , 0 0 0

F u n d U s a g e 2


E x p e n s e T y p e B i l lb a c k




F 2 G a t S p o r t $ 2 , 4 0 0

F 3 T r o p ic a n a O J $ 4 , 0 0 0

F 2 G a t E n e r g y $ 3 , 1 0 0

Fund Usage Generation Level






Some customers have large number of products on a promotion which could lead toan explosion in the number of fund usage items

A customizing setting can aggregate generation of fund usages to the ‘Budget’ level

Fund Usage Generation Level: PlanningFund Usage Generation Level: Budgeting

F u n d U s a g e s a t P la n n in g L e v e l

F u n d U s a g e 1

C u s to m e r K ro g e r O tta w a

E xp e n se T y p e Ev e n t R e la te d

R e f O b je c t T P1

F u n d U s a g e 1 I te m ( s )

F u n d P ro d u c t A m o u n t

F 1 G a t S p o r t $ 1 ,0 0 0

F 1 G a t E n e rg y $ 2 ,0 0 0

F u n d U s a g e 2

C u s to m e r K ro g e r O tta w a

E xp e n se T y p e B illb a c k

R e f O b je c t T P1


F u n d P ro d u c t A m o u n t

F 2 G a t S p o r t $ 2 ,4 0 0

F 3 T ro p ic a n a O J $ 4 ,0 0 0

F 2 G a t E n e rg y $ 3 ,1 0 0

F u n d U s a g e s a t B u d g e t L e v e l

F u n d U s a g e 1

C u s to m e r K r o g e r O t ta w a

E x p e n s e T y p e E v e n t R e la te d

R e f O b je c t T P 1



F 1 G a to r a d e $ 3 ,0 0 0

F u n d U s a g e 2

C u s to m e r K r o g e r O t ta w a

E x p e n s e T y p e B illb a c k

R e f O b je c t T P 1



F 2 G a to ra d e $ 5 ,5 0 0

F 3 T ro p ic a n a $ 4 ,0 0 0

When Are Fund Usages Generated?

Status change of Trade Promotion

Controlled via customizing setting

Usages are generated in specific value categories

Ability to turn off generation for ‘Pre-reserved’ value category

Invocation of ‘Generate Usages’ service via push button or execution in batch mode

Invoked when the status (relevant based on the above customizing setting) of the promotionchanges

Detects if usages already exist and make updates in such a case

Invokes the ‘Assign Funds’ service, if funds are not associated at the intersection level

Invokes Availability check at Aggregate level to ensure budget is available

- Errors if promotion is in released status (or is being released) and sufficient budget is notavailable

Creates usages for all expense types or none (if usage for an expense type cannot becreated)

Fund Usage ValueCategory (Uneditable)

Promotion Status Generate Usage

Reserved Released (mandatory)

Pre-reserved Approved (optional)

Fund Usages Generation During Transition to‘Approved’ State

Created

Released

Approved

Success

Finalized

Archive

Archived

ConsistencyChecks?Approve

Fail

Success

ConsistencyChecks?

Release

Fail

Finalize

Trade Promotion HeaderPlanning Node Kroeger TorontoFunds Plan TPM 2007

Planning DetailsProduct/Prod Cat Spend Type Vol Cost Amount

Gat Sport ER Display $4,000Fund

F2

1. Fund Determination for each record at Intersection level

2. Check Availability for each record at Intersection level

Requested Amount* >= Budget – Expired –PendingBudgetReduction – Prereserved –Reserved –Variance - PendingPrepayment- Prepaid

3. Generate warning message if funds are not available(Application specific)

4. Generate funds posting to update the prereserved valuecategory

5. Check Availability at aggregate level and generateappropriate warning messages

Fund Usages Generation During Transition to‘Released’ State

Created

Released

Approved

Success

Finalized

Archive

Archived

ConsistencyChecks?Approve

Fail

Success

ConsistencyChecks?

Released

Fail

Finalized

Trade Promotion HeaderPlanning Node Kroeger TorontoFunds Plan TPM 2007


Gat Sport ER Display $4,000Fund

F2

2. Check Availability for each record at intersection level

Requested Amount* >= Budget – Expired – Reserved –Variance – Prepaid – Writeoff +Chargeback

3. Generate error message if funds are not available

4. Generate funds posting to release value from the prereservedcategory and add the amount to the reserved value category

1. Confirm if Funds are associated at the intersection level (Run Fund Determination incase Funds are not assigned)

5. Check Availability at the aggregate level and error if AVC fails

Aggregate Availability Check



Individual level Check: Is$3,100 available in Fund F2?

Aggregate level Check: Canthe following request besupported against each of thefunds?

$4,000F3

$5,500F2

$3,000 ($1,000 forGat Sport and$2,000 for GatEnergy)

F1

Requested AmountFund

Fund Availability

Promotion Status Promotion Type AVC ProfileReleased Price Reduction TPM1 Hard AVCApproved Scan - Based TPM1 Soft AVC

AVC - Availability Check Profile is specified in a customizing setting

FundBudget

and FundUsages

TradePlans and

Claims

Fund availability balances the supply and demand for money is ensured trough AVC

How Is Availability Check Invocation Controlled?

Availability Check Profile is specified in a customizing setting

Each time usages are generated, the check is invoked to ensure funds are available

Out-of-the-box, the system will raise an error if AVC fails in ‘Released’ status (or duringtransition to ‘Released’ status)

- Warning in the event of AVC failure in ‘Approved’ status

Customers have the ability to override how AVC should be handled

The system behaviour when AVC fails is controlled by the AVC profile

The profile determines

- The formula for AVC

- Failure response – Error or Warning

- Tolerance levels

Promotion Status Promotion Type AVC ProfileReleased Price Reduction TPM1 Hard AVCApproved Scan - Based TPM1 Soft AVC

Customizing for AVC: Formula builder

Create formula to evaluate key figures for every rule

Fund Usages and Financial Accruals

Financial Accruals for promotions are driven off of Fund UsagesAccrual Profile determines the accrual methodology for a specific fund usageA customizing setting determines the Accrual Profile that will be used for a given tradespend on a promotion

System derives Accrual Profile during usage generationEffective dates on trade spends are leveraged to determine the Accrual Start and EndDates on the usages

BAdI support to override the application behaviour to determine Accrual Profile

Expense Type Promotion Type Accrual ProfileBB Scan Price Reduction Sales VolumeBB Ship Scan - Based Take Rate ProfileDisplay Temporary Price Cut Fixed Rate

Fund Usages With Accrual Information





Billback (Take Rate Based - June 1-30) Event Related (Fixed - June 1-30)TP1 forKroegerOttawa

F u n d U s a g e s

F u n d U s a g e 1


E x p e n s e T y p e E v e n t R e l a t e d

A c c r u a l P r o f i l e F i x e d

A c c r u a l S t a r t 1 - J u n - 0 8

A c c r u a l E n d 3 0 - J u n - 0 8




F 1 G a t S p o r t $ 1 , 0 0 0

F 1 G a t E n e r g y $ 2 , 0 0 0

F u n d U s a g e 2


E x p e n s e T y p e B i l l b a c k

A c c r u a l P r o f i l e T a k e R a t e

A c c r u a l S t a r t 1 - J u n - 0 8

A c c r u a l E n d 3 0 - J u n - 0 8




F 2 G a t S p o r t $ 2 , 4 0 0

F 3 T r o p i c a n a O J $ 4 , 0 0 0

F 2 G a t E n e r g y $ 3 , 1 0 0


Fund determinationmechanisms to associate fundsat various levels

Fund Determination I

Fund determination is used to assign the appropriate funds to:Trade promotionsReservations for market development funds (MDF) initiatives and MDF claimsClaimsBudget postings

Fund determination is based on the evaluation of certain determination rules thatare defined in the fund determination profiles in Customizing. Funddetermination varies from one scenario to another. For each fund determinationprofile, you can make settings for:

Org. Data (Organizational Data)Terr. Hier. (Territory Hierarchy)Acc. Hier. (Account Hierarchy)Prod. Hier. (Product Hierarchy)

Typical Fund Determination Algorithm

1. Get allreleased fundsbased on funds

plan on TPheader

2. Filter basedon org data of

TP

3. Filter basedon Planning

customer of TP

4. Filter basedon Productdimension

5. Filter basedon expensetype on line

item

FundDetermination

Procedure

Fund Association on a TP Different Levels

TradePromotion

TradeSpends ProductFund

Fund

Fund

Fund

Manual Fund Determination and Fund AssociationLevel


plan on TPheader


TP


customer of TP



item

Level = “Trade Spend - Product”Level = “Trade Spend”

Not applied in FundDetermination

Level = “Product”


Level = “Root”


Fund Determination for Trade Promotion –Automatic

1. Getheader anditem data

for TP

Start


plan on TPheader


TP


customer of TP



item

7. If the filter is aunique matchcreate a link

between line andthe fund

EndCalling application action

Service action

Fund Determination for Trade Promotion -Automatic

1. Get headerand item data

for TPStart

2. Get all releasedfunds based on

funds plan on TPheader

3. Filter based onorg data of TP

4. Filter based onPlanning customer

of TP

5. Filter based onProduct dimension

6. Filter based onexpense type on

line item

7. If the filter is aunique match create alink between line and

the fund

End

Calling application action

Service action

Spend Fund Type Funds PlanBB Ship Billbacks TPM 2007 TPM 2007-2BB Scan Billbacks F1 F5ER Disp ER (Fix) F2 F6ER FAD ER (Fix) F3

F4

Customer Hierarchy Product HierarchyKroger Gatorade

Kroger Ontario Gatorade DrinksKroger Toronto Gat SportKroger Ottawa Gat Sport 20Oz 1Pk

Kroger Quebec Gat Sport 10Oz 1PkKroger Montreal Gat Sport 30Oz 1Pk

Gat EnergyKroger BC Tropicana

Kroger Vancouver Tropicana CitrusKroger Victoria Tropicana OJ

Tropicana LemonTropicana Sweet

Tropicana Mango

Fund F1 Fund F2 Fund F3Name F1 Name F2 Name F3Fund Type Billbacks Fund Type Event Related (Fix) Fund Type Event Related (Fix)Customer Kroger Customer Kroger Ontario Customer KrogerProduct Gatorade Budget $50,000 Budget $200,000

Budget $100,000

Fund F4 Fund F5 Fund F6Name F4 Name F5 Name F6Fund Type Billbacks Fund Type Slots Fund Type BillbacksCustomer Kroger Customer Kroger Customer Kroger TorontoProduct Tropicana Product Tropicana Product TropicanaBudget $150,000 Budget $75,000 Budget $25,000

Trade Promotion HeaderCustomer Node Kroger TorontoPlanning Basis Product and Product CategoryFunds Plan TPM 2007


Gat Sport BB Ship 10,000 $1 $10,000

Fund Determination for Trade Promotion – ValueHelp

1. Getheader anditem data

for TP

Start


plan on TPheader


TP


customer of TP



item

7. Getcheckbookfigures andpass to F4

popup

EndCalling application action

Service action

Fund F1 Fund F2 Fund F3Name F1 Name F2 Name F3Fund Type Billbacks Fund Type Event Related (Fix) Fund Type Event Related (Fix)Customer Kroger Customer Kroger Ontario Customer KrogerProduct Gatorade Budget $50,000 Budget $200,000

Budget $100,000

Fund F4 Fund F5 Fund F6Name F4 Name F5 Name F6Fund Type Billbacks Fund Type Slots Fund Type BillbacksCustomer Kroger Customer Kroger Customer Kroger TorontoProduct Tropicana Product Tropicana Product TropicanaBudget $150,000 Budget $75,000 Budget $25,000

Fund Determination for Trade Promotion – ValueHelp (F4 Help)

Spend Fund Type Funds PlanBB Ship Billbacks TPM 2007 TPM 2007-2BB Scan Billbacks F1 F5ER Disp ER (Fix) F2 F6ER FAD ER (Fix) F3

F4

1. Get headerand item

data for TPStart

2. Get all releasedfunds based on

funds plan on TPheader

3. Filter based onorg data of TP

4. Filter based onPlanning customer

of TP

5. Filter based onProduct dimension

6. Filter based onexpense type on

line item

7. Get checkbookfigures and pass

to F4 popupEnd

Calling application action

Service action

Customer Hierarchy Product HierarchyKroger Gatorade

Kroger Ontario Gatorade DrinksKroger Toronto Gat SportKroger Ottawa Gat Sport 20Oz 1Pk

Kroger Quebec Gat Sport 10Oz 1PkKroger Montreal Gat Sport 30Oz 1Pk

Gat EnergyKroger BC Tropicana

Kroger Vancouver Tropicana CitrusKroger Victoria Tropicana OJ

Tropicana LemonTropicana Sweet

Tropicana Mango

Trade Promotion HeaderCustomer Node Kroger TorontoPlanning Basis Product and Product CategoryFunds Plan TPM 2007


ER Display $8,000Gat Sport

Fund Name Fund Description Budget Reserved Claimed Settled PrepaidF2 Events for Kroger Ontario $50,000 $1,000 $500 $500 $0F3 Events for Kroger corporate $200,000 $166,000 $150,000 $150,000 $34,000

Fund Determination “at work”

Here we can see that fund determination works in a budget transfer

A source fund was selected

Through fund determination, possible target funds were defaulted into the result list

Terminology

Trade Spends – Combination of Spend Type, Spend Method and SpendCategory leveraged for a trade promotion

Intersection Level – Planning at the Trade Spend – Product level. Uplift, unitcosts, etc. are specified at this level

Planning Sheet – The VTS grid that captures the spending at the Trade Spend– Product level

Intersection Level

F5F2Drink C

F1Drink B

F4F3F1Drink A

Off-Invoice

EventRelated

Billback

Trade Spends – Expense Type Mapping

Expense Type drives FM services, especially Fund Usagecreation

Expense Type is Generic

The relationship between Trade Spends and Expense Typewill be a 1:1 relationship

A new customizing setting to enable the mapping betweenTrade Spends and Expense Type based on the followingparameters of the Trade Spend:

Spend TypeSpend CategorySpend Method

A sample “Trade Spend - Expense Type” mapping might beas follows:

OIOff InvoiceShipmentDiscount

BBBill backScan basedRebate

ExpenseType

SpendMethod

SpendCategory

Spend Type

Expense Type

MDF:Marketing

EventExpenses

TPM:SpendType

FMServices

Otherapplication

Configurability – Fund determination profile

PromotionType

Funddetermination

Profile

Every promotion uses a fund determination profile

Fund determination profile to adjust the different filter values

Ignore

All levels in Hierarchy or attribute not specified

All levels in Hierarchy

Direct match or attribute not specified

Direct matchProduct Hierarchy

Ignore

All levels in Hierarchy or attribute not specified

All levels in Hierarchy

Direct match or attribute not specified(Note: the calling application will pass whichaccount hierarchy to traverse and the date to beused for hierarchy traversal)

Direct matchAccount Hierarchy

Hierarchical match

Direct match(Note: the calling application will pass whichaccount hierarchy to traverse and the date to beused for hierarchy traversal)

IgnoreTerritory Hierarchy

Hierarchical match

Direct match

IgnoreOrganizational Data

ValueParameter

Fund Type – Expense Type Mapping

The mapping is primarily used in Fund Determination

Funds Type

Expense Type

Trade Spend

0

OIOff InvoiceShipmentDiscount

BBBill backScan basedRebate

ExpenseType

SpendMethod

SpendCategory

Spend Type

Setting Up Trade Funds And Promotions

Beverages

Gatorade Tropicana

Gat SportGat

EnergyTropicana

CitrusTropicana

Sweet

TropicanaOJ

TropicanaLemon

TropicanaMango

Gat Sport20Oz 1Pk

Gat Sport10Oz 1Pk

Gat Sport30Oz 1Pk

Product Hierarchy

Kroger

KrogerCanada

KrogerMexico

KrogerUS

KrogerON

KrogerBC

KrogerMexico

CityKroger SE Kroger NE

Customer Hierarchy

Off-Invoice

Billback

EventRelated

Slotting

Trade Spends

Fund: F1Spend: BillbackProduct: GatoradeCustomer: Kroger

TP

Promotion: 2 for $4Customer: Kroger USSpends:•BillbackProducts:•Tropicana Citrus

Promotions Are Typically Planned at a Lower Level

Beverages

Gatorade Tropicana

Gat SportGat

EnergyTropicana

CitrusTropicana

Sweet

TropicanaOJ

TropicanaLemon

TropicanaMango

Gat Sport20Oz 1Pk

Gat Sport10Oz 1Pk

Gat Sport30Oz 1Pk

Product Hierarchy

Kroger

KrogerCanada

KrogerMexico

KrogerUS

KrogerON

KrogerBC

KrogerMexico

CityKroger SE Kroger NE

Customer Hierarchy

Off-Invoice

Billback

EventRelated

Slotting

Trade Spends

Fund: F1

Product: GatoradeCustomer: Kroger

TP

Promotion: 2 for $4Customer: Kroger NESpends:•Billback•Event RelatedProducts:•Gat Energy•Tropicana Citrus

Accruals

Reserved budgets in Funds Management are accrued to ensure that expenses areposted in the fiscal period(s) they occur.

Load Accrual Reference DataSearch and Display Accrual Reference DataCalculate AccrualsSearch, Display and Edit AccrualsPost AccrualsAccrual Reversal

CRM Trade Promotion Management

Process Overview

Trade Promotion• Validity period• Customer• Product(s)• Trade spend(s)• Planned cost

Accruals

Accruals

Fund• Fund type• Customer• Product•Marketing Organization

AccrualRun

Expenses

Fund UsageHeader• Trade Promotion• Expense TypeItems• Fund• Product• Amounts (in FM docs)

Fund Plan determined/Specified on promotion

Fund determination

Creation/Updating

Calculate

and Post

Transfer

CRM Funds Management ERP Financials

Funds Plan

ODS

External application(i.e. Excel)

Financial Accruals – Accrual Calculation Run

Fund Usages for Accruals

$ 2000

$ 10000

$ 1000

Expenses

ACC2

ACC2

ACC1

SpTyp Accruals

$ 2000$ 2000F3

$ 10000$ 10000F2

$ 1000$ 6000F1

BudgetFund

Funds Plan

Fund [Hierachy-Node;ProdCat;SalesArea]

Fund Type

Accrual Profile•Accrual Method•Reference Data

• Selects relevant Fund Usages• Calculates „Expected Expenses“• Posts data to staging area• Can be started in test mode

Accrual Run

• Can be repeated if required• Can be reversed if required• Is batch-enabled• Is assigned to a period

Accrual Staging Area

Expected Expenses

API

EXTRAC

TOR

Manipulation

Info Cube

BI- BPS

Financial Accruals – Accrual methodssupported

The following accrual methods will be supported by the application:

ERP_SVAccrues ERP sale volumes and TPM take rates using the ERP salesvolume agreement accrual rate

FIXED_DTAccrues the amount reserved for the fund usage on a fixed date

FUNDFIXDUsed for fund-based accruals and accrues the entire amount of the fund onthe date the accrual posting is performed (fixed date)

NB_DAYSSpreads the amount reserved for the fund usage equally over the number ofdays that it accrues. The number of days can span several periods.

TPM_PLANThis accrual profile accrues TPM planning data

Financial Accruals – Accrual Posting Run

Fund Usages for Accruals

$0

$0

$1000

Accruals

ACC2

ACC2

ACC1

SpTyp Expenses

$2000

$10000

$1000

$2000F3

$10.000F2

$6000F1

BudgetFund

Accrual Posting Run

•Builds Fund Postings and updates fundusages

•Triggers Account Determination•Extracts data to BI

•Assuming settlements have come in for F2and F3

Accrual Staging Area

Expected Expenses

Fund Postings for F2• Accruals $10000-• Expenses $10000• Spend Type ACC2

ERP FinancialsCRM Funds Management

Transfer to Accounting• Account Determination(Spend Type G/L Account)• SalesOrg CompanyCode• Trigger GL- Posting

Update Fund Usages

Balance Fund Usages

In order to finalize fundusages a Financial Analystcan search for fund usagesSelect one, several or alland finalize them.

Any remaining accruals forthe fund usage are released,difference between thereserved amount and the totalsettled amount per fund iscaptured as ‘variance’ for thisfund usage.

Reserved $ 10.000

Settled $ 8.000

Variance $ 2.000

Closing Fund Usages Releases Funds Reserved ForThe Promotion

Fund 1


Budget: $100K, Available: $87,500K,Reserved: $12,500, Settled: $0

Fund 2



$17,500

$12,500

Spend typeBillback

Fund 2

Fund 1

Fund



Planned ScanVolume

PriceReduction

Product

TP1 – Cookies$17,500

TP1 – Chips$12,500

Budget: $100K, Available: $87,500Reserved: $12,500, Settled: $0

Fund Usages

Claim 1: Gro4U Miami 2007-10-15

$16,000

$11,000

Amount

CookiesBillbackTP1

ChipsBillbackTP1

ProductTrade SpendPromotion

$11,000

$16,000

Budget: $100K, Available: $87,500,Reserved: $12,500, Settled: $11K

Consumption against apromotion

Budget: $200K, Available: $182,500,Reserved: $17,500, Settled: $0Budget: $200K, Available: $182,500,Reserved: $17,500, Settled: $16K

Close Fund Usages

Budget: $100K, Available: $89K,Reserved:$0, Settled: $11K

Budget: $200K, Available: $184K,Reserved:$0, Settled: $16K

Integrated Overview

Full integration of TPM includes AOP/ Forecast and APO/ Demand Planning

TPM

TFM

TCM

AOP/FORECAST

APO/DEMAND

PLANNING

Baseline

Base

PromotionAttributes

Prelim Funds

PromotedVolume Promoted

Commitments

Promotions

Claims/Settlements Budget

Availability

Planned Trade Spend(event-based)

ForecastedVolume

Periodic TradeSpend Expense

(non event-based)Accruals

Commitments

Funds

Data Flow: Demand Planning Integration

ERP

BI

SCM

Plan/Actual InfoCube

CRM2007

Create and saveTrade Promotion

(Marketing Planner)

Actual InfoCube

uplift

(incrementalsales

volume)

plan data

copy actual data by SEM function(including hierarchy derivation)

Demand Planning

CO-PA

SD

actual databaseline(copy via SEMfunction)

Baseline forecast

Total forecast

baseline(for display)

CRM Consumer Products Solution Map(Customer and Consumer)

MarketingSolution map

Consumer

Account

Trade &Sales

Brand &Category

SalesSolution map

ServiceSolution map

Strategy Planning Evaluation& Budgeting Execution

KPI Planning

Analytics

Web /

e-mail

Partners

Direct

mail

Call

centerFieldsales

Branch/ stores

CustomerSegmentation

FundingAllocation

Bus Strategy& Planning

Terms ofTrade

ConsumerSegmentation

ConsumerInsights

CampaignExecution

CampaignPlanning

InteractiveOffers

TargetSetting (Vol,$)

Pricing &Contracts

SalesPlanning

CategoryManagement

MarketingCalendar

PortfolioManagement

MediaPlanning

CreativeContent

MarketResearch

ResponseRates

Field SalesMonitoring

One view ofFinancials

PromotionEffectiveness

BrandPerformance

Third PartyData

PromotionGuidelines NPDI

VolumePlanning

PromotionSimulation

FundManagement TPM

PortfolioPlanning

Account PlanDevelopment

ObjectiveManagement

VisitPlanning

TerritoryManagement

Channel &Cust. Strategy

MarketingDev Funds

ClaimManagement

FundsCheckbook

DeductionValidation

AccrualsManagement

CustomerManagement Prepayments

Chargebacks

Year EndRebate

Promotionsell in

ExpenseReporting

RetailExecution

OrderManagement

PromotionValidation

Fund Re-Allocation

Complaints& Returns

© SAP 2007 /

Further information

SAP CRM - Roll-Out Maphttps://portal.wdf.sap.corp/go/crm-rollout-map

SAP CRM - Ramp-Up Knowledge Transfer (RKT)http://service.sap.com/rkt-crm

SAP CRM – Demo Portalhttp://crmportal.wdf.sap.corp:1080

SAP CRM – WiKihttps://wiki.wdf.sap.corp/display/SAPCRMHub/Home

SAP CRM - Help Portalhttp://help.sap.com/crm

SAP Public Webhttp://www.sap.com/crm

https://portal.wdf.sap.corp/go/crm-rollout-map

http://service.sap.com/rkt-crm

http://crmportal.wdf.sap.corp:1080/

https://wiki.wdf.sap.corp/display/SAPCRMHub/Home

http://help.sap.com/crm

http://www.sap.com/crm

© SAP 2007 /

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