Vistex

Overview
Introduction
Overview
Vistex is dependent mainly on
transactional data created as part of the
Order to Cash, Procure to Pay Processes
and external data therefore it is important
to understand the flow of these processes.

Due to various backgrounds of trainees,

this will be a high level review of the OTC
and PTP processes
Overview: Procure to Pay (PTP)

The Big Picture: Procure to Pay

 Overview: Order to Cash (OTC)
Order to Cash (OTC) is the process we follow to complete a customer
order
OTC can be explained in three categories:
Order Management Taking and processing customer orders
Delivery Processing Preparing and sending our products to customers
Bill Customer Billing customers and processing our received
payments

Order Management Delivery Processing Bill Customer

Transactional Data from External
Sources
In addition to receiving source documents from SAP
OTC and PTP processes, source information can also
be uploaded into Vistex using:

- XL

- EDI/IDOC

- Interfaces

and stored for future use by Vistex transactions.

Agreement Overview
Key Terms
Click each term to learn more.

Vistex

Agreement

Agreement Type

Agreement Rule

Portal

Workflow

Accrual
Vistex
Click each term to learn more.
Vistex is an embedded solution within
SAP that uses the same master data
Vistex and G/L accounts. Vistex is able to
handle complex supplier and
customer agreements; which is not
Agreement available using standard SAP
configuration.

Agreement Type

Agreement Rule

Portal

Workflow

Accrual
Agreement
Click each term to learn more.
An Agreement is a business contract
governing the terms of business
Vistex transactions established between
retailers, suppliers and customers.

Agreement

Agreement Type

Agreement Rule

Portal

Workflow

Accrual
Agreement Type
Click each term to learn more.
Agreement types refer to the different
types of contracts that are used to
Vistex manage these relationships, example:
Customer Rebate Agreement,
Purchase Based Agreement,
Agreement Chargeback Agreement, etc.

Agreement Type

Agreement Rule

Portal

Workflow

Accrual
Agreement Rule
Click each term to learn more.
An agreement rule determines the
eligibility of an agreement and the
Vistex calculation details of the agreement.
Example -
Agreement rule:
Agreement Rebate applies to only one business
entity, 5% on all articles.

Agreement Type

Agreement Rule

Portal

Workflow

Accrual
Portal
Click each term to learn more.
Portal brings together multiple
technologies into a single seamless
Vistex and easy-to-use interface for end
users including associates, suppliers,
and customers.
Agreement

Agreement Type

Agreement Rule

Portal

Workflow

Accrual
Workflow
Click each term to learn more.
Agreement workflow is a function
within SAP/Vistex that will be used to
Vistex route the approvals required for
agreements and settlements.

Agreement

Agreement Type

Agreement Rule

Portal

Workflow

Accrual
Accrual
Click each term to learn more.
An accrual is an amount owed or
earned based on execution of
Vistex agreements.

Agreement

Agreement Type

Agreement Rule

Portal

Workflow

Accrual
Key Terms (contd.)
Click each term to learn more.

Settlement

Settlement Method

IP Document

Partner Communication
Document

Claim

Supplier/Vendor

Retailer

Customer
Settlement
Click each term to learn more.
Passing to Finance (AR or AP) the
amount earned or due at a certain
Settlement point in time

Settlement Method

IP Document

Partner Communication
Document

Claim

Supplier/Vendor

Retailer

Customer
Settlement Method
Click each term to learn more.
Settlement
Settlement method is the way an
agreement is settled. Example -
Check, Credit, etc.

Settlement Method

IP Document

Partner Communication
Document

Claim

Supplier/Vendor

Retailer

Customer
IP Document
Click each term to learn more.
IP (Incentives and Payback) document
is the interim document created by
Settlement SAP/Vistex when calculating accruals.

Settlement Method

IP Document

Partner Communication
Document

Claim

Supplier/Vendor

Retailer

Customer
Partner Communication Document
Click each term to learn more.
The partner communication document
is the document that is shared with
Settlement external parties to reach agreement
on settlement amounts.
Settlement Method

IP Document

Partner Communication
Document

Claim

Supplier/Vendor

Retailer

Customer
Claim
Click each term to learn more.
In order to generate a debit for special
pricing, rebates, or other promotions
Settlement to a vendor/customer, a claim is
generated.
Settlement Method

IP Document

Partner Communication
Document

Claim

Supplier/Vendor

Retailer

Customer
Claim
Click each term to learn more.
The terms supplier and vendor are
synonymous. The supplier is the
Settlement manufacturer of the product.

Settlement Method

IP Document

Partner Communication
Document

Claim

Supplier/Vendor

Retailer

Customer
Claim
Click each term to learn more.
A retailer buys from the supplier and
sells to the end customer.
Settlement

Settlement Method

IP Document

Partner Communication
Document

Claim

Supplier/Vendor

Retailer

Customer
Claim
Click each term to learn more.
The customer is the final recipient of
the product.
Settlement

Settlement Method

IP Document

Partner Communication
Document

Claim

Supplier/Vendor

Retailer

Customer
Vistex
Vistex is an embedded solution within SAP and
has the same look and feel as SAP
Vistex uses the same master data and G/L
accounts as SAP
Vistex helps customers in identifying, computing
and settling of incentives, commissions, Vendor &
Customer rebates, paybacks and chargebacks
Vistex Agreement Overview
An agreement is a document that captures all the terms and conditions
of doing business with a business party, such as a supplier or a
customer.

Supplier Agreement Customer Agreement

Is a contractual Is a contractual purchasing

arrangement between the arrangement between the
retailer and a supplier. retailer and a customer
Supplier Agreements
include both Purchase
Based and Chargeback
Agreements

Purchase Based, Chargeback, and Customer Agreements are further broken

down by Agreement Type which defines the parameters of the agreement
between the Retailer and the supplier or customer.
Vistex Agreements Overview
An agreement is a document that captures all the terms and conditions
of doing business with a business party, such as a supplier or a
customer.

Chargeback
Purchase Agreement
Agreement

Is a contractual Is a contractual
agreement in which the arrangement in which the
supplier guarantees a supplier agrees to
cost or rebate to the provide rebates to the
customer retailed if certain
performance criteria are
met
 Agreement
Agreement
Rules Rules and Rule Rule Types

Typesrules are
Agreement Agreement rule types vary based on
the Agreement Type. Examples of
conditions that define the rule types include:
parameters of an Business Eligibility
agreement and determine Vendor Eligibility
how an agreement is Customer Eligibility
applied. Article Eligibility
Within SAP/Vistex, rules are Employee/Partner eligibility
Rates
set up based on eligibility or
rule types.
Eligibility defines the
suppliers, customers and
articles that qualify for an
agreement and/or price
rule.
Key Process Purchase-Based Agreement

A Purchase Based agreement is an agreement stipulating the rebates that the

vendor will give the retailer for each product they buy

Agreement
1 Product 123-
Rebate:
$2.00/pc

Shipmen
2 t

Retailer
Supplier
Payment
3 Sold Product 123
to Retailer =
$2/pc
Agreement Creation, Accrual and
Settlement (Contd.)
Cycle for Purchase Based Agreements
Set up Purchase Review Composite
Based Agreement for Volume/Growth

Process Purchase Create Accrual

Orders/Receipts

Create Settlement
Create Purchase
Rebate Document

Trans- No
actional?
Yes
Receive supplier
Automated accruals
response

Create Interim Create Partner

settlement Comms. document

Send claim to
Create Settlement
supplier

Post-settlement
Adjustments
Key Process - Chargebacks
Chargeback Agreement is an agreement that stipulates special costs that the
vendor negotiates with the retailer and customer for the sale of certain
products for a defined time period.

Agreement
1 Product 123-
Guaranteed
Cost $20.00/pc

Invoice Invoice
2 Product 123 Product 123
$22/pc $20/pc
3

Shipmen Sale
t

Retailer End Customer

Supplier*
Claim
Sold Product 123 4
to Operator =
$2/pc

*From a supplier perspective, the process is called Billbacks

Agreement Creation, Accrual and Settlement (Contd.)
Cycle for Chargeback (Chargeback) Agreements

Set up Create Interim

Chargeback Settlement
Agreement

Send claim to
Process Sales supplier
Orders/Invoices

Receive supplier
Response
Create
Chargeback IP
documents Record Vendor
ResponsePC Doc

Create Accrual
Create Settlement

Post- settlement
Adjustments
Key Process Customer Rebates
Payment
3 Sold Product to
Retailer = 5% of
sales

Customer Rebate
1 Agreement
All Products = 5%

Sales
2

Retailer Customer
Agreement Creation, Accrual and
Settlement (Contd.)
Cycle for Customer Rebate Agreements

Set up Customer Review Composite

Agreement for Volume/Growth

Process Sales
Order/Invoices

Create Customer Create Accrual

Rebate Document

No Create Settlement
Trans-
actional?

Yes

Create Accrual

Post-settlement
Create Settlement
Adjustments
Agreement Updates
Agreements can be updated in the following two ways:
Directly in the agreement:

The agreement is updated directly in Vistex

if there is an error in the initial setup of the
agreement or updates are needed.
With an agreement request:
Agreement requests are used for standard
updates to the agreement by the supplier or
customer (i.e., extension, adding article,
etc.).
Agreement requests have separate
workflows and are approved
independently of the associated
agreement.
Master Data and Agreements
Key Terms
Click each term to learn more.
Master Data
Article Master
Vendor Master
Customer Master
Hierarchy
GPO/Membership
Master Data
Click each term to learn more. Master Data is the essential data
element used to identify the parties in
Master Data a transaction. It is the foundational
and core set of data elements that
Article Master defines a corporation including
articles, suppliers and customers.
Vendor Master This data is used by many of the
processes and information systems in
Customer Master the company.
Hierarchy
GPO/Membership
Article Master
Click each term to learn more.
Master Data Article master stores product related
Article Master information like site, product
category, MRP, Unit of measurement,
Vendor Master sales area data, merchandize
category, profit center, MAP, etc.
Customer Master
Based on business requirement, any
Hierarchy attribute of article master or the
GPO/Membership article it self can be part of
eligibilities.
Vendor Master
Click each term to learn more.
Vendor master data stores supplier
Master Data information and is use to build vendor
eligibilities in agreements.
Article Master
Vendor eligibilities can be based on
Vendor Master manufacturer or ship from locations of
manufacturer. Whether it is Ship From
Customer Master or manufacturer, they are supposed to
be maintained as vendor master in
Hierarchy SAP before using them as eligibilities
GPO/Membership in Vistex agreements.
Customer Master
Click each term to learn more.
Master Data Customer master stores customer
information. Based on account group,
Article Master you can create Sold-To, Ship-To, Bill-To,
Payer customer master and link
Vendor Master accordingly.
Customer Master Customer master itself or attribute of
Hierarchy customer master can be part of
eligibility.
GPO/Membership
Click each term to learn more.
All partners of a hierarchy have a
Master Data common business relationship.
Standard SAP hierarchy maintains the
Hierarchy
Article Master parent child relationship within a
customer organization or a vendor
Vendor Master organization.

Customer Master
Hierarchy
GPO/Membership
GPO/Membership
Click each term to learn more.
GPO (Group Purchasing Organization)
Master Data membership functionality is used to
assign customers to the relevant
Article Master GPO/buying group. A customer can
leave one GPO and join another.
Vendor Master
Customer Master
Hierarchy
GPO/Membership
Purchase Based, Chargeback, and Recapture
Agreements
Key Terms
Click each term to learn more.

Purchase Based
Agreement

Chargeback
Agreement

Recapture Agreement
Purchase Based Agreement
Click each term to learn more.
Purchase-Based
Agreement
A Purchase-Based agreement is an
agreement stipulating the rebates
that the vendor will give the retailer
for each product they buy.

A Volume and Growth Purchase-Based

Chargeback agreement is a performance
agreement stipulating a dollar amount
Agreement that the vendor will give the retailer
for buying a specified amount
(quantity or dollars) of product within
Recapture Agreementa certain time.
 Chargeback Agreement
Click each term to learn more.
Chargeback Agreement is an
agreement that stipulates special
Purchase Based costs that the vendor negotiates with
Agreement the retailer and/or a customer for the
sale of certain products for a defined
time period. Usually a vendor
chargeback arises due to the
Chargeback difference the product is sold to the
Agreement customer and the cost that the
retailer paid for the product.

Recapture Agreement
Recapture Agreement
Click each term to learn more.
Recapture agreement is a contractual
Purchase Based agreement between the retailer and a
supplier which defines the terms in
Agreement which the retailer has to pay the
Supplier for selling product to specific
customers.
Chargeback
Agreement

Recapture Agreement
Purchase Based Agreements
Overview

For Purchase Based agreements, rebate documents are raised

after the goods receipt occurs.

Purchase Based agreements are based on the retailers purchases.

Rebate documents record the amount earned by the retailer

based on the agreement with the supplier.

Rebate documents accrue on a nightly-basis and are monitored

throughout the accrual period.
Purchase Based Agreements
Types
Thefollowing are the examples of Purchase Based
Agreements:

Purchase Based

Promotion

Lumpsum/Flat Fee

Volume

Growth
Chargeback Agreements
Overview
Chargeback agreements The system generates a
(Vistex Chargeback chargeback document to
agreements) are calculate the amount owed
negotiated by suppliers by the supplier, based on
and customers for the Chargeback cost or
allowances and rebates. allowance amount.

Chargeback
Agreements

Rebate documents accrue For Chargeback

on a nightly basis and are
monitored throughout the
accrual period.
agreements, the
guaranteed cost or rate is
a pricing condition used for
customer pricing.
 Chargeback Agreements Types
Following
are the types of Chargeback
Agreements

Promotional-Sales

Discounts and Coupons

Coops/Deals
Customer Rebate Agreements
Key Terms
Click each term to learn more.

Customer Rebates

Customer Rebate
Agreement
Customer Rebates
Click each term to learn more.
Customer Rebates
A customer rebate is an allowance
given to a customer based on
customer's sales (volume or quantity)
for a given time period.

Customer Rebate
Agreement
Customer Rebate Agreement
Click each term to learn more.
Customer Rebates
Customer rebate is the contractual
agreement that contains all the
allowances, products, dates, and
exclusions.

Customer Rebate
Agreement
Customer Rebate Agreements
Following
are the types of Customer Rebate
Agreements

Flat fee

Volume

Growth