Vistex Chargeback /IRM/IPALLMENU by Soumi Dutta

Definition of Chargeback Chargeback is a claimed amount that a manufacturer pays a distributor for goods/services sold by him according to a mutual agreement between them. The Chargeback process would help the distributors to sell their merchandise for a lower value and retrieve the difference between his acquisition cost and the customer sales price. Thus he would set up an agreement with the manufacturer to determine the pricing and settlement parameters for the products.

Benefits of the Chargeback Application The IP module provides distributors with tools required to administer, track and reconcile the claims filed with the manufacturers. Efficient management of Chargeback claims has the following benefits: Reduces Dispute handling costs for Chargeback's. Reduces Days-Chargeback-Outstanding. Increases cash flow. Reduces manual effort and number of adjustments. Helps the senior executives to concentrate on reaching business goals rather than expend their time on cumbersome processes.

Chargeback Process

Chargeback Lifecycle Repricing Accrual Parking Settlement Reconciliation Chargeback lifecycle is not dependent on it’s source document once Chargeback agreement is created.

Source Documents of Chargeback

Source Documents of Chargeback The information which is derived from these source documents is: General information about the sale (Sales Org., Distr. Channel, Div., Company Code etc.). All parties involved in the sales transaction (Partners). The product pricing for the distributor (Cost price and Selling price). Basic Material Information (Quantity, Rate, Currency, Unit).

Chargeback creation based on Partner Roles with proper agreements

Chargeback creation based on Partner role w/o agreement

Why Partner Roles are important to create Chargeback Document Chargeback process will only take place with a manufacturer only if there exists a valid agreement between the parties for at least one item in the source document. The Chargeback document sent to a particular manufacturer would only contain those items that belong to the sale as well as to an agreement between the manufacturer and distributor. Slide 6. If there is no agreement between the parties, then the question of a Chargeback does not arise at all and thus there is no Chargeback document. Refer Slide 7 Chargeback document will not be created for Vendor 2 and Vendor 3 as no agreement is found for those invoice line items.

Chargeback Creation Transaction codes (/IRM/IPSPRO Path is also shown here) Tcode for Individual Chargeback creation : /IRM/IPCBM. CB Mass Processing IP-Chargeback's-Mass Proc.of Sales Documents (Sales Source Documents) The transaction code is /IRM/IPCB22. CB Mass Processing IP-Chargeback's-Mass Proc.of Billing Documents (Billing Source Documents) The transaction code is /IRM/IPCB21. CB Mass Processing IP-Chargeback's-Mass Proc. of Claims (Claims Source Documents created form Sales document) The transaction code is /IRM/IPCB20.

Chargeback Display or Change TCodes CB Search and Process IP-Chargeback's-Claim Process The transaction code is /IRM/IPCB31. CB Search and Process IP-Chargeback's-Billing Process CB Search and Process IP-Chargeback's-Sales Process The transaction code is /IRM/IPCB32. CB Search and Process IP-Chargeback's-Process The transaction code is /IRM/IPCB33.

Chargeback Accounting Document Display /IRM/IPCB35

Document flow for the accounting document of Chargeback

Technical Information For CB Area TCodes of CB Reports /IRM/IPCB05 /IRM/IPCB41 Program Name /IRM/IPCB_LIST_DISPLAY /IRM/IPCB_MISSING_BILLING_DOCS User Exits – Function group for CB XIPCB XIPCB IP: Chargeback Customer Enhancements Different types of exits for Accrue , Settlement depending upon various mode of selection of data. BADI /IRM/BADI_IPCB_ALL IP: Chargeback Customer Enhancements BADIs for Chargeback for modifying accrue, settlement calculations, Enhance KOMP data, KOMK data, user fields reconcilation

High Level Overview from Contract to Chargeback Business Process for a Pharma wholesale business process Manufacturer Wholesaler End Customer Receive Contract Award Notification (EDI 845) Place Order with Wholesaler Contract Negotiation With GPO or End Customer Receive Order Send BID Award to Wholesaler Ship Product and Invoice End Customer Receive Product and Invoice Receive Chargeback Chargeback Request EDI 844 Ship Product and Invoice End Customer Chargeback Reconciliation (EDI 849)

Chargeback functions : CB Creation, Document flow and Reconciliation Chargeback Document Chargeback pricing procedure and account determination (can be used to adjust Chargeback amounts, accrue rebates, post to specific accounts, etc.) View contract data in Chargeback Track vendor’s reference number View vendor data in Chargeback Output and/or re-submit Chargeback using EDI 844, print, fax, email, etc. Document flow including Chargebacks, SD documents and contracts. Chargeback linked to all source EDI transactions Full change log and audit history Chargeback Creation Outbound EDI 844 and inbound 849 support Automatic and manual creation Create Chargeback's in batch, periodically or immediately Combine multiple Chargeback requests into a "collective Chargeback request" to reduce transaction volume Full Chargeback workbench integration (all document display and processing can be done without leaving workbench) Generate Chargeback when a contract is loaded retroactively

Chargeback functions : CB Creation, Document flow and Reconciliation Chargeback Reconciliation All Chargeback rejections, statuses and paid amounts visible on Chargeback document Track requested and paid Chargeback amounts separately Track rejection reasons Customizable rejection processing including custom fields, validations and workflow Reverse and reopen posted Chargebacks as a result of subsequent reconciliation Web portal for manufacturers to enter Chargeback response into your SAP system.