1. Vistex Chargeback /IRM/IPALLMENU
by Soumi Dutta

2. 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.

3. 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.

4. Chargeback Process

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

6. Source Documents of Chargeback

7. 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).

8. Chargeback creation based on Partner Roles with proper agreements

9. Chargeback creation based on Partner role w/o agreement

10. 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.

11. 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.

12. 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.

13. Chargeback Accounting Document Display /IRM/IPCB35

14. Document flow for the accounting document of Chargeback

15. 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

16. 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)

17. 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, , 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

18. 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.