PeopleSoft Promotions Management 9.1 PeopleBook

Defining Funds

This chapter provides an overview of Promotions Management funding methods and discusses how to:

Maintain funds.
Update accrual fund amounts.

Understanding PeopleSoft Promotions Management Funding Methods

PeopleSoft Promotions Management provides a flexible environment for managing promotional funds. Funds are budgets that account managers use to run promotional events for specified brands to increase sales volume. Promotions Management supports four funding methods that you can associate with funds:

Top down.
- Manufacturer establishes a budget at the headquarter level.
- Typically distributed in lump sums throughout the sales force to plan promotional events.
Fixed accrual.
- Fund budgets are calculated based on past shipments of a particular product to a customer, using a specified accrual rate.
- Past shipments are a basis for discretionary or nondiscretionary funding in another period.
  
  For example: (shipped amount for a past accrual period) * (unit of measure conversion) * (accrual rate as currency).
Zero-based accrual.
- Funds with an initial budget of zero dollars and a fund amount that accrues as shipments are made.
- Funds accrue and are spent in the same period and cannot accrue across periods.
- Current shipments are the basis for funding and accruing budget amounts.
  
  For example: (shipped amount for the current accrual period) * (unit of measure conversion) * (accrual rate as currency).
Rolling accrual.
- Combination of fixed and zero-based accrual funds.
- The initial budget is calculated based on a past shipment period and as shipments are made, the fund accrues additional budget amounts.
  
  For example: [(shipped amount for a past accrual period) * (unit of measure conversion) * (accrual rate as currency)] + [(shipped amount for the current accrual period) * (unit of measure conversion) * (accrual rate as currency)]

Use these funding methods for funding a customer promotion (discretionary spending) or national allowance (nondiscretionary spending).

Common Element Used in This Chapter

Approval Status

Values are: Approved, Initial, Pending, and Rejected.

To authorize a user to change a fund approval status, you must select the Can Approve Funds check box for that user in the customer tree. Users who are not authorized to change a fund approval status can submit their changes for approval. The default value is Initial.

Maintaining Funds

This section discusses how to:

Define overall fund details.
Select customers to associate with funds.
Select products to associate with funds.
Define accrual periods and rates.
Maintain budget amounts for funds.

Pages Used to Maintain Funds

Page Name	Definition Name	Navigation	Usage
Maintain Funds - Fund Detail	TD_FUND_MASTER	Promotions, Funds, Maintain Funds, Fund Detail	Define overall fund details that are related to a fund, such as the fund type and funding method.
Maintain Funds - Customers	TD_FUND_CUST	Promotions, Funds, Maintain Funds, Customers	Select customers to associate with funds.
Maintain Funds - Products	TD_FUND_PROD	Promotions, Funds, Maintain Funds, Products	Select products to associate with funds.
Maintain Fund Accruals/Budget - Accruals	TD_FUND_ACCRUAL	Promotions, Funds, Maintain Fund Accruals/Budget, Accruals	Define accrual periods and rates for a fund that has an accrual funding method. In addition, you can override the accrual rate by customer and override the product selection by accrual period.
Maintain Fund Accruals/Budget - Budget	TD_FUND_DIST	Promotions, Funds, Maintain Fund Accruals/Budget, Budget	View the budget amounts associated with all funds and maintain the budget amounts for top-down and fixed accrual type funds.

Defining Overall Fund Details

Access the Maintain Funds - Fund Detail page (Promotions, Funds, Maintain Funds, Fund Detail).

Use this page to add and maintain basic fund information. After defining fund details, customer, and product information, use the Maintain Fund Accruals/Budget component to add accrual and budget information if necessary.

Note. To update active fixed accrual and top-down funds, you must be defined as a user in the Users/Roles Approved to Update Active Funds grid on the Promotions Options - General Options page.

Approval Status	Select the appropriate approval status for the fund. If the user can approve funds, select the Approved status. If the user cannot approve funds, select the Submit for Approval check box. This changes the approval status to pending. A user with appropriate access can then approve or reject the fund. Note. If a fund has an approval status of Approved, you cannot set the fund status to Inactive if open promotional activity exists for the fund.
Status	Select the status for the fund. Statues are: Active and Inactive. After the fund has an approved status, anyone with access to the component can change the status to Active. Note. The fund status must be Approved and Active before you can associate it with a national allowance or customer promotion.
GL Business Unit (general ledger business unit)	The general ledger unit that you defined on the Promotions Options - General Options page appears. You can select another general ledger unit if you choose.
Fund Usage	Select a fund usage to categorize this fund.
Fund Type	Select the fund type. Types are: Discretionary: For customer promotions. Non-Discretionary: For national allowances.
Funding Method	Select the funding method. Funding methods are: Fixed Accrual, Rolling Accrual, Top Down, and Zero-Based Accrual. Note. If you select a top-down funding method, the system does not display the Maintain Fund Accruals/Budget - Accruals page. If you select an accrual funding method, the system displays the Maintain Fund Accruals/Budget - Accruals page.
Start Date and End Date	Select the fund start date and end date. This is the time frame that the fund can be used for planning and executing promotions. When you create customer promotions or national allowances, all the dates must be within the start date and end date that you enter for the fund.
Include Returns Within Fund Accruals?	Select if you want returns to be backed out of fund accrual calculations. For example, you have a fixed accrual fund with an accrual period of last month, and you shipped 10,000 units last month, but 8,000 units were returned. By selecting this check box, the new fund would use only 2,000 units to accrue the fund budget. By not selecting the check box, the new fund would use all 10,000 units to accrue the fund budget.
Currency and Unit of Measure	The currency and unit of measure fields appear with the values that you defined on the Promotions Options - General Options page. You can select a different currency and unit of measure if you choose. For funds with a top-down funding method, this is the currency in which you enter budget amounts and the unit of measure in which you enter units for this fund. The system displays these values on the Maintain Fund Accruals/Budget - Budget page. For funds with Fixed Accrual, Rolling Accrual,or Zero-Based Accrual funding methods, this is the currency and unit of measure that the accrual process uses. The system displays the currency that you select on the Maintain Fund Accruals/Budget - Accruals page and the currency and unit of measure that you select on the Maintain Fund Accruals/Budget - Budget page.

See Also

Defining Fund Usage

Understanding PeopleSoft Promotions Management Funding Methods

Defining Promotions Management Options

Updating Financial Information in PeopleSoft Promotions Management

Selecting Customers to Associate With Funds

Access the Maintain Funds - Customers page (Promotions, Funds, Maintain Funds, Customers).

The system displays the active customer tree that you define on the Promotions Options - Tree Options page and uses this tree to distribute the funds to customers. If you want to use a different customer tree for this fund, select a valid customer tree ID and effective date.

Select the customers to include or exclude for this fund:

To select all customers, click the Add All button on the top node of the customer tree, or enter the customer IDs directly into the Customers grid at the bottom of the page.
To select specific customers or subsets of customers, click the Add All button on individual customer nodes or on higher nodes. You can also enter the customer IDs directly into the Customers grid at the bottom of the page.
To exclude customers, click the Remove All button on individual nodes or on higher nodes, or delete individual rows from the Customers grid at the bottom of the page.

When you select a customer on this page, the fund is valid for that customer when you create national allowances or customer promotions.

See Also

Establishing Customer Trees

Selecting Products to Associate With Funds

Access the Maintain Funds - Products page (Promotions, Funds, Maintain Funds, Products).

The system displays the product tree that you define on the Promotions Options - Tree Options page and uses this tree to determine the products for which the fund is valid. If you wish to use a different product tree for this fund, select a valid product tree ID and effective date.

Select the products and promotion groups to include or exclude for this fund:

To select all products and promotion groups, click the Add All button on the top node of the product tree, or enter the products and promotion groups directly into the Products and Promotion Group grids at the bottom of the page.
To select specific products and promotion groups, or subsets of products and promotion groups, click the Add All button on individual product tree nodes or on higher nodes. You can also enter the products and promotion groups directly into the Products and Promotion Group grids at the bottom of the page.
To exclude products or promotion groups, click the Remove All button on individual nodes or on higher nodes, or delete individual rows from the Products and Promotion Group grids at the bottom of the page.

When you select a product or promotion group on this page, the fund is valid for that product or promotion group when you create national allowances or customer promotions.

See Also

Establishing Product Trees

Defining Accrual Periods and Rates

Access the Maintain Fund Accruals/Budget - Accruals page (Promotions, Funds, Maintain Fund Accruals/Budget, Accruals).

Note. The Accruals page is available only if you have a fund associated with one of the following accrual funding methods: fixed, rolling, or zero based. Before you can use the Maintain Fund Accruals/Budget component, you must create the fund using the Maintain Funds component. The system uses information that you define in that component as a basis for the data you enter in the Maintain Fund Accruals/Budget component.

When this page initially appears, the Override Accrual Rate and Override Accrual Products check boxes are not selected. In addition, the right region of the page is blank and the customer and product tree information is not available.

This section discuss how to:

Define an accrual rate and period.
Define an accrual rate and period with accrual rate overrides.
Define an accrual rate and period with product overrides.

Note. In addition to defining accrual information, you use this page to indicate how the Accrual and Financial Update Application Engine process (TD_FINUP) should calculate accruals for this fund. Use the Shipments to Include field to indicate whether the process should summarize the shipments for all sales orders or for only those sales orders associated with promotional activity as the basis of the accrual calculations when you select to run fund accrual processing.

See Running the Accrual and Financial Update Application Engine Process.

Defining an Accrual Rate and Period

To define an accrual rate and period:

Enter a name and description for this fund accrual period.
Select a start date and end date for the accrual period.

The system uses this time period to calculate the shipment values for accruals against this fund. The system validates these dates against the fund accrual method:
- Fixed accrual dates must be prior to the valid fund dates.
- Zero-based accrual dates must be within the valid fund dates.
- Rolling accrual dates are not validated.
Enter the accrual rate for the accrual period.

In the Currency field, the currency that you define on the Maintain Funds - Fund Detail page appears. The system uses this rate when calculating the accrual for shipments that are processed during this specified period.

The accrual rate is directly tied to the discounts that you plan to give for specific products during the fund start and end dates. Before you enter this rate, determine the amount that you plan to spend on promotional activities per unit of measure of this product.

To calculate the amounts, the system multiplies the accrual rate by all applicable shipments within the period for each unit of measure. For example, if you have a 5.00 USD accrual rate, unit of measure of each, and shipments are in cases, the system determines how many eaches are in the case and then performs the calculation.
Select the unit of measure for the accrual period.
Determine what shipments to include in the accrual calculations:
- All shipments.
- Only shipments associated with promotional activity.

Note. If you do not select the override options, the Accrual and Financial Update Application Engine process performs the accrual process for all the products that you select on the Maintain Funds - Products page and for all customers that you select on the Maintain Funds - Customers page.

Defining an Accrual Rate and Period With Accrual Rate Overrides

To define an accrual rate and period with accrual rate overrides:

Perform the procedure to define an accrual rate and period.
Select the Override Accrual Rate check box.

The Rate Override tab in the right region of the page appears, along with the Customer Tree ID and Effective Date fields.
(Optional) Select a different customer tree and effective date.
Select the Rate Override tab in the right region of the page.

The customer tree that is associated with the customer tree ID and effective date that you select on this page appears. Next to each node on the customer tree is the accrual rate that you previously entered.
Enter the rate overrides for the different customers.

Change the accrual rate for any customer by entering a new accrual rate. If you do not want to accrue a fund amount for a specific customer, change the accrual rate to zero for that customer. Otherwise, the customer is assigned a fund amount during the Accrual and Financial Update process if shipments exist for the accrual period specified.

Note. In this case, the Accrual and Financial Update process performs the accrual process for all customers using the accrual rates that you entered on the Rate Override tab.

Defining an Accrual Rate and Period With Product Overrides

To define an accrual rate and period with product overrides:

Perform the procedure to define an accrual rate and period.
Select the Override Accrual Products check box.

The Product Override tab appears, along with the Product Tree ID and Effective Date fields.
(Optional) Select a different product tree and effective date.
Select the Product Override tab.

The product tree associated with the product tree ID and effective date appears.
Select the product to associate with this accrual fund period by clicking the Add All button next to individual product nodes or on higher nodes, or by entering the product IDs or promotional groups directly onto the Product Override grid at the bottom of the Product Override tab.

The products that you define on this page determine which data the system uses to accrue the fund amounts during the Accrual and Financial Update process. When you first select to override products, the system displays the selections that you define on the Maintain Funds - Products page.

Note. When the Accrual and Financial Update process runs, it accrues the fund amounts using the products that you selected on this page. The fund amounts that are generated are then valid for the products that you select on the Maintain Funds - Products page. Product overrides are especially useful when you have a new product introduction and shipment history does not exist for the product that you want to promote.

Maintaining Budget Amounts for Funds

Access the Maintain Fund Accruals/Budget - Budget page (Promotions, Funds, Maintain Fund Accruals/Budget, Budget).

This section discusses how to:

Display fund amounts for a fund.
Enter budget data for a fund with a top down funding method.

Displaying Fund Amounts

To display fund amounts for a fund:

Display a fund by entering the selection criteria.
1. If you select a setID and fund code, the budgeted, distributed, and available columns appear with their data for the setID and fund code.
  
  The system automatically displays the budgeted fund amount, distributed fund amount, and available fund amount columns using the default checkbook definition that it creates.
  
  To view additional fund amounts, create a checkbook definition, and then select that checkbook ID on this page.
2. If you select a setID, fund code, and checkbook ID and click the Refresh button, the associated columns and amounts appear next to the budgeted column.
  
  Select a predefined checkbook ID to see additional columns with fund amounts that you define, such as planned amounts, actual amounts, and incurred amounts.
  
  Note. You can select only discretionary fund budget or nondiscretionary fund budget type checkbook definitions on this page. If you are working with a discretionary fund, select only discretionary fund budget type checkbook definitions. If you are working with a nondiscretionary fund, select only nondiscretionary fund budget type checkbook definitions.
(Optional) Select a different display budget option:

Amounts

Only the budget amounts with no units.

Amounts & Units

Both budget amounts and units.

Units

Only the budget units with no amounts.

Note. The display budget values affect only the budgeted columns on this page. All other column values appear as amounts.
View the budget fund amounts that are associated with the fund.

For accrual type funds, the system calculates and displays the budget amounts and units for you. The system always displays the budgeted and distributed columns and populates them with fund information.

Note. Before information appears on this page for accrual type funds, you must perform the Accrual and Financial Update process.

Note. If you are associated with a user ID or role that is authorized to update active top-down and fixed accrual funds on the Promotions Options - General Options page, then you can maintain the budgeted amounts for these types of funds when the fund status is Active. If you maintain the budgeted amounts for a fixed accrual fund and do not want the amounts to be updated by the Accrual and Financial Update process, then you can select the Do Not Allow Batch Updates check box at the top of the Maintain Fund Accruals/Budget - Budget page.
(Optional) Save the selected checkbook ID as a default value for your user ID.

If you want to save the selected checkbook ID as a default value for your user ID, click the Save As Default button. The next time you view this page for the same fund, the checkbook ID will be populated for you and you will see all of the columns defined for the checkbook.

Amount and Unit Calculations for Budgeted, Distributed, and Available Fund Amounts

Column Heading	Calculation	Means of Entry
Budgeted	Equals the amount and units that are allocated to this level of the customer tree.	Top down: You enter the amount and units. Accrual methods: The Accrual and Financial Update process populates amount and units. Amount and units change each time that the Accrual and Financial Update process runs for rolling and zero-based accrual funds, unless you check the Do Not Allow Batch Updates option for fixed accrual funds.
Distributed	Equals the amount and units that are distributed to lower (child) nodes of the customer tree.	The system calculates this information for all fund types.
Available	Budgeted amount minus distributed amount.	The system calculates this information for all fund types.

Entering Budget Data for Top-Down Funds

To enter budget data for a fund with a top-down funding method:

Display a top-down fund by entering the selection criteria.

Perform the procedure to display fund amounts for a fund as described above.
Distribute the budget amount to all levels of the organization.

For top-down funds, manually distribute the budget amount to all the levels of the organization using the customer tree that appears on this page.

Depending on which value you choose in the Display field, you can enter budgeted amounts or budgeted units or both the budgeted amount and units at the same time. As you enter the amounts or units, the system calculates and displays the distributed and available column amounts.

In addition, you can view the high-level budget information that you entered on this page on the Fund Detail page.

Note. You can enter budget amounts starting at the lower levels of the tree and work the way up. The system changes the available amounts on all nodes as you go. In this case, budgeted amounts at the upper levels could go negative. If you have negative amounts, you can go to that level of the tree and make adjustments to correct the negative value.

See Also

Defining Checkbooks

Updating Financial Information in PeopleSoft Promotions Management

Updating Accrual Fund Amounts

When you define accrual type funds, you must determine the starting budget for those funds and distribute the fund amounts to the sales organization in the promotional environment. In addition, because the fund is used for promotional activity, you must determine how that affects the budgeted amounts and where the fund money is allocated at any point in time. You select the Run Fund Accrual Processing option when requesting the Accrual and Financial Update process to make this determination.

Amounts	Only the budget amounts with no units.
Amounts & Units	Both budget amounts and units.
Units	Only the budget units with no amounts.