Tiered Growth Rebates in CRM Trade Promotion Management

Tiered Growth Rebates are used to provide performanced based discounts or rabates to the customer. Based on different tiers a higher rebate is provided for better performance.

Overview

TGR rebates provide a certain rebate based on different performance indicators such as the sales volume, number of shelves in a store or the growth compared to a reference time period.

TGR rebates are linked to a certain product or product category and a TGR trade spend type. The tiers are defined on trade spend level.

Each TGR rebate has a set of tiers defined. Each tier associates a range of performance values with a specific spend value. The evaluation happens based on a specific key figure that is used to determine the correct tier using a specific calculation method. Each TGR type has one evaluation criterion and one calculation method. The calculation method is used together with the base and comparison dimension to retrieve the correct tier.

The figures considered for determining the correct tier are entered in the corresponding planning layout:

The amount from the tiers is used as a spend value for the provided rebate.

The determination of the tier and the calculation of the TGR rebate needs to be triggered manually by using the 'Transfer Trade Spends' button. This will call the synchronization with BW and renders the planning layout to retrieve the correct key figures for the calculation.

Technically the calculation is triggered after the trade spends are transfered in CL_CRM_MKTGS_IB_COST_TRANS_TS=>EXECUTE. System check if there are TGR items existing and calls CL_CRM_MKTGS_TGR_ITEM=>DETERMINE_REBATES accordingly.

TGR Types

There are the following default TGR Types available in the system. Each type is defined by a specific combination of base dimension, comparison dimension, tier type, spend value type, and calculation method.

• Volume based TGR Types
  For the following TGR Types have the sales volume as base and comparison dimension. All those TGR types provide variable rebates. The evaluation happens based on the number of sold cases. For the following examples there are the following tiers defined. Each example is based on a sales volume of 700 cases.
  
  • Classic tiers
    For classic tiers the spend value is calculated by summing up the spend value multiplied by the volume in each tier.
    
    The calculation happens on the following pattern.
    
  • All tiers
    For all tiers the spend value is calculated by spend value is multiplied by the total volume for the period.
    
    The calculation happens on the following pattern.
    
  • Growth over each tier
    The growth over each tier TGR type is variable rebate based on the number of cases sold.
    
    The calculation happens on the following pattern.
    
• Shelf based TGR Types
  • Shelves
    This provides a fixed amount based on the number of shelves in the store.
    
• Off-invoice TGR Types
  • Off-invoice
    An off-invoice discount (a scale type discount) based on total sales during the year. The discount is provided for each invoice that is received. The number of cases of each invoice is summed up to provide the discount.
    
• Growth related TGR Types
  The following TGR types determine the tiers based this years sales volume (measured in either sales volume, or sales revenue).
  
  The rebates granted may be variable amounts or fixed amounts depending on the calculation method.
  • Variable growth vs last year, total sales
  • Variable growth vs last year, volume
  • Variable growth vs last year, sales
  • Fixed growth vs last year, total sales
  • Incremental growth vs last year, total sales

The evaluation criteria and the calculation happens from the following classes:

CL_CRM_MKTGS_TGR_EVCRIT_DATE   Determine Eval. Crit. For Date range
CL_CRM_MKTGS_TGR_EVCRIT_DET    Parent class to specific evaluation criteria classes
CL_CRM_MKTGS_TGR_EVCRIT_DOLLAR Determine Eval Crit Type
CL_CRM_MKTGS_TGR_EVCRIT_PMON   Percentage in Volume eval criteria
CL_CRM_MKTGS_TGR_EVCRIT_PVOL   Percentage in Volume eval criteria
CL_CRM_MKTGS_TGR_EVCRIT_SHELF  Det. Eval. Crit. type
CL_CRM_MKTGS_TGR_EVCRIT_VOLUME Return the right type of Evaluation Crit.

CL_CRM_MKTGS_TGR_CALC_ALLTIERS All Tiers Calculation Method
CL_CRM_MKTGS_TGR_CALC_CLASSIC  Classic Tier Calculation Method
CL_CRM_MKTGS_TGR_CALC_FIXED    Fixed Amount Calculation Method
CL_CRM_MKTGS_TGR_CALC_GINC     Growth Incremental Calculation Method
CL_CRM_MKTGS_TGR_CALC_GOET     Growth Over Each Tier Calculation Method
CL_CRM_MKTGS_TGR_CALC_GROWTH   Growth Calculation Method
CL_CRM_MKTGS_TGR_CALC_GVOLUME  Growth Volume Calculation Method
CL_CRM_MKTGS_TGR_CALC_METHOD   Generic Calculation Method

Any different TGR Types need to be defined in Customizing, for any different evaluation criteria or calculation method there is the BAdI CRM_MKTGS_TGR available.

Condition Generation

TGR rebates can be used for pricing determiantion conditions (PR conditions) and for rebate conditions (BO conditions).

• BO conditions
  Rebate conditions have the usage BO. BO conditions create rebate agreements.
  
  The rebate is payed out after the trade promotion after the trade promotion is executed. Any sales volumes are collected on the rebate agreement. The rebate may be processed either in the CRM system or in the ERP system.
• PR conditions
  Pricing conditions have the usage PR and used in the off invoice scenario.
  
  PR conditions hold the scale information in the generated condition record. The details can be checked in the condition record detail view. The scales can be changed manually.
  
  The scales are available for PR conditions only.

Planning Integration

The keyfigures used for determining the tiers are calculated and stored in BW. TGR rebates therefore require BPS planning integration. The values are entered in the planning layout assigned to the TGR Type.

The planning layout needs to be defined in BW in BPS0 and UPX_MNTN and need to contain the mapped key figures.

The calculation of the tiers depend on the entered key figures.

Customizing

Trade Spends

TGR rebates require the following customizing. Since TGR rebates are driven by trade spends the trade spends need to be customized accordingly in the following customizing path:

Customer Relationship Management

Trade Promotion Management

Trade Promotions

Trade Spends

Define Trade Spends for Values

The trade spend type and category needs to be defined.

TGR Types

In the following customizing path the TGR types need to be defined:

Customer Relationship Management

Trade Promotion Management

Trade Promotions

Trade Spends

Tiered Growth Rebates

Define Tiered Growth Rebate Types

This customizing path contains the different dialogs for defining and assigning the base and comparison dimensions, the tier type details, the spend value settings and the used calculation methods. The tier type details defines if the values in the tiers are of monetary, volume based or percentage nature. The spend value defines if the rebate is of monetary or percentage nature. The 'Tier Growth Rebate View' dialog contains the assignment of the above details to the TGR Type.

The following customizing defines the mapping from the trade spend type, spend category and spend method to the TGR type:

Customer Relationship Management

Trade Promotion Management

Trade Promotions

Trade Spends

Tiered Growth Rebates

Define Trade Spend Combinations for Tiered Growth Rebates

Planning Integration

Since TGR rebates require BW planning synchronization the planning integration needs to be set up properly. For TGR rebates there is the following integration customizing required:

Customer Relationship Management

Trade Promotion Management

Trade Promotions

Trade Spends

Tiered Growth Rebates

Define BI Content

In the 'Planning mapping table' dialog the planning profile used for synchronizing the TGR related key figures needs to be maintained:

The 'TGR KFP mapping table' dialog holds the InfoObjects for the required key figures for each TGR type:

This key figures need to be included in the planning layout used by the planning profile. The planning profile defined in the 'Planning mapping table' dialog needs to be assigned to the planning profile group used in the trade promotion. This is to be done in the following customizing:

Customer Relationship Management

Trade Promotion Management

Key Figure Planning

Define Planning Profile Groups

Condition Maintenance

The conditions require the following customizing:

Customer Relationship Management

Trade Promotion Management

Trade Promotions

Condition Maintenance

Define Condition Generation

The TGR spend type, spend category, spend method are mapped to the corresponding PR or BO condition types.

Product Exceptions

In certain scenarios there are exceptions available for the product dimension. The tiers defined on product level overrule the tiers defined on trade spend level. In that scenario the tiers defined in the product exceptions have different spend values as the tiers on trade spend level. The rebate is calculated using the spend value defined in the prouct exception.

In case there are several product used in a trade promotion, the tiers are defined on trade spend level are first considered for calculating the values for the rebate.

For certain products the tiers may differ from the tiers defined on trade spend level. This is to be maintained in the product exceptions view.

The rebate is calculated using the spend value defined in the prouct exception. For products without product exception the spend value defined on trade spend level is used.

This document should provide an overview about tiered growth rebates in trade promotions. In case you feel anything is missing, or anything is unclear please let me know.