Implementing Channel Rebate

This chapter covers the following topics:

Overview

Managers can use trade planning to create and allocate sales quotas, evaluate past offers and create new ones. Sales Representatives use the account planning area of trade planning to monitor offer and retailer performance. Account planning tools include the Activity Summary, Offer Evaluator, Discount Calculator and Offer Worksheets. See Set Up Account and Activity Planning for more details.

Discount planning is also an integral part of trade planning. It involves setting discounts that encourage customers to buy products, while at the same time providing the desired return on investment. By offering discounts, organizations can improve sales, achieve sales targets, and gain competitive advantage. Different types of discounts can be offered based on varying business conditions and scenarios.

Offers in Oracle Channel Revenue Management simplifies the process of discount planning, execution, and tracking. You can plan and create different kinds of offers depending upon the requirements and the results that you want to achieve.

This chapter describes the tasks required to implement and administer trade planning. Implementation tasks are one-time procedures performed during or shortly after installation. Examples include setting profile options, creating and verifying lookup values, and creating users. Administrative tasks are repetitive operations performed post-installation. Examples include creating claim types and reasons, configuring a budget threshold, and creating custom setups.

Quotas

Sales activities of large manufacturing organizations usually span many territories and regions. Before planning for sales activities, organizations must analyze and set targets for the current year, as well as plan the products and territories to target.

Sales Force Automation tools in Oracle Channel Revenue Management include Quota Allocation and Account Manager Dashboard:

The public API, Quota Creation Based on Existing Territory Hierarchies strengthens support for integration with any third party system in any industry.

Budgets

Oracle Channel Revenue Management provides efficient and cohesive budgeting and financial processing. This eliminates wasteful spending and ensures trade funding is allocated and utilized as intended. You can plan and track fund usage, and ensure that resources are deployed effectively. It offers access to historical sales and pricing information, which you can use to plan for budgets based on facts.

The budgets functionality also supports Oracle Partner Management business flow. Special Pricing, Soft Funds, and Referral compensation requests that are created in Oracle Partner Management can source funds from budgets in Oracle Channel Revenue Management.

Key Features

Budget management gives organizations a comprehensive tool for planning as well as tracking actual spending, whether accrued or immediately incurred, of sales, marketing and partnering activities. Budget Management includes the budget checkbook view.

You can use the budget checkbook to view actual budget usages, such as expenses or accruals. Companies using Oracle Channel Revenue Management generally write their own reports for specific reporting needs. Oracle Channel Revenue Management enables you to easily create these reports using the materialized views that collect budget utilization data. You can then use this data to create different reports.

Data is collected by

You can also perform the following tasks.

Customer Accounts

You can use the Oracle Channel Revenue Management dashboard as a single entry point for the iterative selling process. In an iterative sales model sales representatives manage customer accounts and sell products on a continuous and repetitive basis. The features in the Oracle Channel Revenue Management Dashboard that address the iterative selling process include the following:

Key Features
Features Description
Offer Worksheet for Lump Sum and Scan Data Use the worksheet to create lump sum and scan data offers as well as off-invoice, accrual and trade deal offers.
Account Plan and Dashboard Summary Exposing Budget Information Without navigating to budget summary, a sales representative can access the dashboard to see his customer accounts' budget utilized, earned, paid and outstanding accrual balance. The budget information a sales user can see is limited to the customers (accounts and/or sites) within his territory. This information will be exposed both on the dashboard summary view as well as from within an account plan.
Configurable Related Links Quick links are configurable by an administrative user.

Offers

Trade planning in Trade Promotion Management encourages customers to buy products, and at the same time produces the desired ROI. By offering discounts, organizations can improve sales, achieve sales targets, and gain competitive advantages.

Trade planning tools simplify the process of discount planning, execution, and tracking. You can create different kinds of offers depending on the requirements and the results you want to achieve. You can associate offers with products or campaigns, predict the performance of new offers, and create adjustments to active offers. You can also track and monitor costs and revenues for active offers.

Key Features

Oracle Channel Rebate provides comprehensive support for all types of promotional agreements. Sales users can create and monitor offers on the Account Manager Dashboard. Additionally, sales administrators, marketing managers, pricing managers and partner managers who have full exposure to set advanced pricing and eligibility rules can also create and monitor offers on the Account Manager Dashboard.

Oracle Channel Rebate includes enhanced flexibility in creating, maintaining, and monitoring volume offers and also offers support for point of sales in volume offers.

Volume offers, whether on an off invoice or accrual basis, are frequently used incentives to customers, buying groups or partners, based on their cumulative purchase volume over a period of time.

To synchronize with modifiers in the Oracle Pricing application Oracle Channel Rebate includes the profile option OZF: Global Flag on Pricing Related Objects.

Key Features
Feature Description
Creation for Multiple Customers and Products Reduces the number of volume offers a user has to create and maintain. In a single volume offer, users can enter different sets of rates for different product categories and products. For more information see Set Up Volume Offer.
Indirect Sales Support Oracle Channel Revenue Management handles all payment requirements both directly or indirectly, based on Point of Sale data. Volume offers can apply on both direct and indirect sales or a combination of both.
Expose Pricing Formula Pricing formula, created in Advanced Pricing, is exposed on volume offers to provide flexibility in handling highly complex pricing and promotion scenarios.

Implementing Org-Striping

Org-striping involves segregating areas based on operating units. In real-time scenarios, companies set up different operating units (OU) or business entities for different reasons. These operating units have their own business rules and they function independently. This means that the business transactions of one OU may or may not be accessed by another OU.

You can enable Oracle Multiple Organization Access (MOAC) and use a single responsibility to access multiple operating units. For more information, see the Oracle Channel Revenue Management Implementation and Administration Guide.

Using Operating Units

The following table lists and describes how Oracle Channel Rebate uses operating units:

Use of Operating Units
Oracle Channel Revenue Management Module Use of Operating Unit
Offers To synchronize with Modifiers in the Oracle Pricing application, offer in Oracle Channel Rebate and Point-of-Sale Management include the OZF: Global Flag for Pricing Related Objects profile option.
Budgets Budgets in Oracle Channel Rebate and Point-of-Sale Management uses Operating Units in the following manner:
  • Fully Accrued Budget - When you create a budget in Oracle Channel Revenue Management and accumulate the Total balance the profile option OZF: Global Flag on Pricing Related Objects id is used. For additional information, refer to Chapter 5, Implementing Budgets. That chapter contains a description of the profile and the Customer Liability Flag.

Price Lists In Oracle Channel Rebate and Point-of-Sale Management the OZF: Global Flag on Pricing Related Objects profile option determines whether a price list has the global flag checked in the background. The price list header screen contains the global flag for price lists
Quota You can use the OZF:Trade Planning Territories Limited to Operating Unit profile option to create and maintain territories for Channel Revenue Management thus enabling you to segregate territories by operating unit. This eliminates the requirement of setting up all territories with account sites as matching attributes. You can set this profile option at the site level. This profile option can handle either org-specific or non-org specific quota allocation.
Dashboard The OZF:Trade Planning Territories Limited to Operating Unit profile option enables the Channel Revenue Management dashboard to expose sales orders within one or multiple operating units.
The account's account site for all operating units (plus any other matching attributes) will be derived for the territory, and sales data will be based on those sites.

Org-Striping in Offers, Budgets, and Pricelists

Org striping enables you to restrict offers, budgets, and price lists to the respective operating units. By org-striping offers, budgets, and price lists, you can:

In org-striped offers, budgets, and pricelists, the operating unit details are derived from the MOAC profile options, MO:Default Operating Unit.

Note: Org-striping does not affect offer security. Offer ownership and group access determine the offer security.

Global Flag on Pricing Related Objects

Offers, budgets, and price lists include global flags that determine whether an offer, budget, or pricelist can be applied only within the same operating unit or not. You can control the global flag by setting the OZF: Global Flag on Pricing Related Objects profile option at site, application, responsibility, and user levels. The profile option and the global flag work together with the QP: Security Control Profile that is set in System Administrator > Profile > System. The profile option is owned by Advanced Pricing.

You can set the OZF: Global Flag on Pricing Related Objects profile option to determine whether the global flag will be checked by default for an offer, budget, or pricelist. For the values of this option refer to the Profile Options for the Trade Planning Category section.

Only administration users within the AMS: Admin Group can view and update this flag.

Impact of Org-Striping on Offers

The following table describes the impact of org-striping on different offer types.

Offer Type Direct Sales Indirect Sales
Accrual, Off-invoice, Trade Deal, Order Value, Terms Upgrade, Volume Accrual, Volume Off-invoice, Promotional Goods offer The offer applies to orders in different operating units, except in the following cases:
  • The Pricing Security Control Profile is set to On, the OZF: Global Flag on Pricing Related Objects profile option is checked and the global flag is unchecked.

  • Pricing Security Control Profile is set to On, but the OZF: Global Flag on Pricing Related Objects profile option is unchecked and the global flag is unchecked.

Same as the conditions that apply for direct sales.
The Global flag on each modifier or price list should be checked.
Lump sum, Scan Data offer No impact on offer execution or performance activity validation.
The performance activity specified in a Lump Sum or a Scan Data offer automatically validates order volumes before claims are settled. The offer and the claim are specific to an operating unit, and hence validation takes place only on orders of that particular operating unit.
No impact on offer execution or performance activity validation.
The offer utilization does not vary based on indirect sales data.
The performance activity for a Lump sum or a Scan Data offer does not have the ability to validate indirect sales data.
Net Accrual offer If QP profile is set to On, and the global flag in the Net Accrual offer is:
  • Checked:

    Offer utilizations are excluded even if the offers belong to an operating unit that is different from the Net Accrual offer.

    Similarly, marketing and receivables transactions are excluded irrespective of the operating unit to which they belong.

  • Unchecked: The offer is treated as an exclusion only if its operating unit matches with the operating unit of the Net Accrual offer.

    Similarly, marketing and receivables transactions are treated as exclusions only if their operating units are same as that of the Net Accrual offer.

-NA-
Offers created for Oracle Partner Management purposes If the offers created for Oracle Partner Management purpose should be global, then either the QP: Security Control profile at the site level should be set to Off, or the OZF: Global Flag on Pricing Related Objects profile option at the application level for PRM should be set to Yes. -NA-

Impact of Org-Striping on Budgets

Org-striping has no effect on Fixed Budgets, and budget integrations with Oracle Marketing and Oracle Partner Management.

Org-striping has the following impact on Fully Accrued Budgets:

Impact of Org-Striping on Pricelists

Only users with the Administrator responsibility can view the global flag on OZF: Allow updates to Price Lists Created in Advanced Pricing from Channel Revenue Management. Regardless of the global flag setting of a pricelist, the organization of a product is not validated when the product is added to the pricelist.

Org-Striping in Quota Allocations and Account Manager Dashboard

In Oracle Channel Revenue Management, territories are not org-specific; an operating unit can span multiple territories. Org-striping quota allocations and account manager dashboard enables you to:

Details of the default operating unit are derived from the MOAC profile option, MO: Default Operating Unit.

OZF: Trade Planning Territories Limited to Operation Unit

The OZF: Trade Planning Territories Limited to Operation Unit profile option enables you to make quotas and account manager dashboard org-specific. You can set this profile option at the site level with either of the following values:

Use this profile option in scenarios where territories are defined with non-org specific matching attributes such as customer accounts. For org-specific matching attributes such as customer account site, the operating unit by default restricts the matching attribute list of values.

Impact of Org-Striping on Quota Allocation

Org-striping enables you to allocate quota based on sales data of specific operating units rather than territories.

For example, Vision Industries has two operating units, Vision A and Vision B. The quota allocation is based on the territory hierarchy that is created under Vision A. A customer of Vision Industries, Bigmall, has two accounts, Account A1 in Vision A, and Account B1 in Vision B. The following table describes the manner in which the historical data is used based on whether the OZF: Trade Planning Territories Limited to Operation Unit profile option is set to either Yes or No.

Profile option Setting Territory Transaction Matching Attributes Historical Sales Data Used
Yes Bigmall Sales data of Account A1
Yes Account A1 Sales data of Account A1
No Bigmall Sales data of Account A1 and Account B1
No Account A1 Sales data of Account A1

Important: In the above example, if the profile option is set to Yes, then the customer account--Account B1 is not included in the territory hierarchy that is defined in Vision A. This is because the LOV of the matching attribute, "Account Site" is restricted by operating unit.

Org-striping has no effect on quota creation or quota access. The OZF: Trade Planning Territories Limited to Operation Unit profile option does not determine access levels. Even if the profile is set to Yes, users with the Administrative responsibility can access quota allocations in the respective territory hierarchy.

Impact of Org-Striping on Account Manager Dashboard

The OZF: Trade Planning Territories Limited to Operating Unit profile option determines whether data of a specific operating unit or all operating units should be displayed on the dashboard.

Additional Information: Regardless of the profile option setting, if a territory has org-specific matching attribute such as a customer account site, then the territory is defined exclusively for a specific customer account. In such scenarios, sales data is derived based on the account site and any other matching attribute.

The Oracle Channel Revenue Management account manager dashboard can display budget data. Along with access to budgets that they own, dashboard users can also view balances of budgets created by other owners and teams.

For example, the marketing department in Vision Industries creates a budget to execute a campaign. All customers are eligible to participate in this campaign. The marketing department is the owner of the budget. For security reasons, Julie, a channel revenue management sales representative, cannot be a team member of this budget. However, Julie can view budget balances of customers that are assigned to her.

Setting Profile Options

Oracle recommends that you set certain system profile options so that Channel Rebate functions properly. Select the settings that meet your business requirements. This section lists the profile options used for budgets, offers, and price lists. by profile option category. For more information on profile option categorization, see the Oracle Channel Revenue Management Implementation and Administration Guide.

Profile Options for Budgets Category

Profile options enable an organization to configure the application to suit business requirements. Some profile options are required and some are optional. Most profile options have preset default values that you can change as needed.

To implement budgets for Channel Revenue Management, set the profiles listed in the following table. For the specific procedure for setting up system profile options, see Setting Profile Options in the Oracle Channel Revenue Management Implementation and Administration Guide.

Profile Options for Budgets Category:OZF_BUDGET_SETUP
Profile Name Required Level Setting Default Description
OZF : Allow committed budget to exceed total budget No Site
Appl
Resp
User
Yes/No No If set to Yes, the committed amount for a budget can exceed its total budget amount.
Set it to yes if you intend to use “budget” for initial sourcing but do not want to impost strict control over its usage. In such cases, the committed amount serves as an estimate for how much you will spend. Using this profile value, a budget may become negative. For example, there is more money spent/utilized than there is available.
If set to No, the committed amount may not exceed the total budget amount. Set to no if you intend to use budget not just for sorting but also for imposing financial control over budgetary usage.
OZF : Allow Recalculation of Committed Budget No Site Yes/No No Re-Calculated Committed is an option to re-calculate the necessary funding level based on the actual sales performance of a promotion (for example, offer). Funds can be increased or decreased. If the promotion performs well, funding can be automatically increased, and vice versa.
If set to Yes the concurrent process (for recalculate commit) will perform re-calculation of offers' committed amounts.
If set to No re-calculation will not be performed. Users are still able to see the Re-Calculated Committed budget column, it will simply be equal the Committed column.
OZF : Budget Adjustment Grace Period in Days No Site
Appl
Resp
User
Enter any integer (for number of days) 10 Reconciliation is a way to return the following money at the completion of an offer:
Adjusts previously committed, but unutilized funds - transferring them from the Committed column to the Available column (“Reconcile Unutilized”).
Adjusts previously utilized, but unpaid funds, - thus adjusting the Utilized column accordingly as well as transferring it from the Committed column to the Available column (“Reconcile Unutilized and Unpaid Earnings”). Budget reconciliation may be performed manually or automatically.
If automatic: The Release Committed Budget Amount After Grace Period concurrent program is used to reconcile budgets. This program waits before reconciling the sourced budgets of an object after the closing date of the object.
If manual:The offer is evaluated on a case by case basis. Use automatic if you would like to systematically reconcile the budgets.
OZF: Budget has Grace Period No Site
Appl
Resp
User
Yes/No Yes Yes indicates that budgets can have grace periods.
OZF: Create GL Entries for Orders Yes Site Shipped
Invoiced
USD (United Sates Dollar) Default value is Shipped. This is used to drive order-related accruals in Channel Revenue Management for GL entries.
OZF : Currency Conversion Date for Rollup View. Yes Site
Appl
Resp
User
  % This date is used while converting budget rollup amounts to the user profile currency.
OZF : Currency Conversion Type No Site
Appl
Resp
User
  Corporate Used across Oracle Channel Revenue Management for default conversion between currencies.
This is the currency conversion rate.
OZF : Default Period In Days for recalculating committed budget No Site
Appl
Resp
User
Enter any integer (for number of days) 1 Day This profile specifies how often the application recalculates committed budgets. Enter any number greater than or equal to one.
For example:
  • If set to 1, Re-Calculated Committed change after 1 day.

  • If set to 2, Re-Calculated Committed change after 2 days.

OZF : Global Start Date (mm/dd/yyy) No Site
Appl
Resp
User
  Suggested Value: "01/ 01/1997" This profile contains the earliest date you want to populate time structure from. Note that GL calendar should have data from that date onwards, without any breakages. It sets the absolute start date for Channel Revenue Management data. All data loaded into the Channel Revenue Management transaction tables, which refer time Structure tables, is collected as of this date. Historical data is maintained in Channel Revenue Management from this date forward.
OZF : Highest Period Level of Budget Utilization Payment Details Yes Site
User
  MTD This profile option determines if month-to-day (MTD), quarter-to-day (QTD), and year-to-day (YTD) funds columns are hyperlinked to transactional details. If the profile value is YTD, then MTD, QTD, & YTD fund columns are hyperlinked to details. If the profile value is QTD, then MTD & QTD fund columns are hyperlinked to details. YTD fund columns display the totals but do not have a hyperlink to details. If the profile value is MTD, then MTD fund columns are hyperlinked to details. QTD & YTD fund columns display the totals but do not have links to details.
OZF : Period Type       Month This profile contains the name of the period as defined in GL, for example 'Month'. Period Type sets the default period type for Channel Revenue Management. NOTE: 'x' Periods make a Quarter and 4 Quarters make a Year. Warning: The value in this profile cannot be 'Year' or 'Quarter'. Suggested Value: Month.
OZF : Start Day of Week       Monday (2) This profile sets the starting day for a week (for example, Sunday or Monday). For example, if you select 2 the Week starts every Monday. Note: Name of week always has end date of week. Suggested Value: 2
OZF : Source From Parent Object No Site Yes/No Yes This applies to the following objects:
  • Offers

  • Campaign Schedule

  • Event Schedule

    If set to Yes, objects may only source from their parent objects. For example, for an offer and a campaign schedule, the parent is a campaign; for an Event schedule, the parent may be an Event.

    If set to No the schedule sources funds directly from a budget.

OZF : Universal Currency for Budget Rollup View Yes Site Choose any valid currency from a list of available currencies USD This profile determines the currency for the roll-up view. It allows the roll-up view of a budget to display correctly by converting all entries to a single currency.
Different users will, however, be able to see the Rollup View in different currencies based on the user level profile option JTF_PROFILE_DEFAULT_CURRENCY. (In other words, the universal currency profile is simply for storage in the background).
Once set, the profile should not be changed.
OZF: Use Account Generator Workflow No Site Yes or No No This option is used to call the account generator workflow for accrual accounting.
If the profile option is set to Yes, the account generator workflow is called to generate an account code combination ID.
If the profile option is set to No, the account generator workflow is not called.
OZF: Validate Eligibility and Override Product Distribution for Lumpsum Offers No Site Yes or No No This option is used to validate budget eligibility and override product distribution for lumpsum offers.
If this profile option is set to Yes, the budget amount is distributed on a prorated basis among products that are eligible for the budget. Budget sourcing amount takes precedence over offer distribution definition.
If this profile option is set to No, the budget amount is distributed to all products associated with the lumpsum offer.
OZF: Validate market and product eligibility between object and budget No Site
Resp
Choose a Value No validation for customers and products. Values are: No validation for customers and products. Validate customer and products by each budget. Validate customer by each budget, product by all budgets. Validate product by each budget, customer by all budgets.

Profile Options for the System Defaults Category

The table below lists profile options for the System Defaults category of OZF_SYSTEM_DEFAULTS that relates to Channel Rebate.

System Defaults Category Code: OZF_SYSTEM_DEFAULTS
Profile Name Required Level Setting Default Effect/Limitation
OZF : Default "Accrue To" for Volume Offer Yes Appl
Resp
Site
User
Enter a correct value. Account Value to default for the "Accrue To" market option for a Volume offer.
OZF : Default Budget For a Person Yes Appl
Resp
Site
User
Choose a budget name from the list of available budgets Valid budget name During budget request for all objects, users may decide to source from a Budget or from a Person. When sourcing is made to a person, the system will automatically default the budget name specified on this profile on to the budget request. Users will be able to change it on screen.
OZF: Default Partner Budget No Appl
Resp
Site
User
Choose a budget name from the list of available budgets. Valid budget name Default budget for a partner.
OZF : Default Price List for ROI Calculation Yes Appl
Resp
Site
User
Valid price list defined in the system Corporate The value specified here will be used in calculating the default Return on Investment for a given offer forecast.
OZF : Default Team for Offers Optional Appl
Resp
Site
User
Select the team from the LOV in the profile option. Valid team name This profile option indicates the team that can access an offer. If this option is not set, then offer users can select the teams that can access the offer.
OZF : Default Tracking Level for Volume Offer   Appl
Resp
Site
User
  Account Value to default for the "Volume Tracking Level" market option for a Volume Offer.
OZF : Default value for "Combine Discount Tables" in Volume Offer   Appl
Resp
Site
User
  No volume Value to default for the "Combine Discount Tables" market option for a Volume offer.
OZF : Default value for Retroactive Flag in Volume Offer   Appl
Resp
Site
User
  No Value to default for the "Retroactive Flag" market option for a Volume offer.
OZF: Default value for Vendor Rebates Checkbox No Appl
Resp
Site
User
Yes/No Yes A value of Yes automatically checks the Vendor Rebate field in the Offer page during offer creation. If you create a customer rebate, then you must uncheck the Vendor Rebate field.
If you only use customer rebates, set this profile option to No. The type of rebate (customer or supplier/vendor) affects the calculation of gross margin, so you must identify vendor rebates if you use them.
OZF : Default View of Customer's Budgets No Appl
Resp
Site
User
Yes/No No If set to Yes, you can see the Budget Customer View button from the Budget summary page.
OZF : Scan Data UOM Yes Appl
Resp
Site
User
One of the available UOMs Each The default UOM value for discount rules for Scan Data offers. For example, if you choose Each, then all empty discount rules in Scan Data offers will display the UOM of Each.

Profile Options for the Trade Planning Category

The following table lists and describes the system profile options that must be set for Trade Planning to function properly. Select the settings that meet your business requirements. Most offers, except for lump sum and trade deals) leverage Advanced Pricing.

For the specific procedure for setting up system profile options, see the Setting Profile Options section in the Oracle Channel Revenue Management Implementation and Administration Guide.

Profile Options for Trade Planning Category - OZF: TP_SETUP
Profile Name Required Level Setting Default Effect/Limitation
OZF: Create GL Entries for Orders Yes Site Currency Code USD (United States Dollar) Required to perform quota allocations based on a territory hierarchy.
OZF: Common Unit of Measure for Trade Management Yes Site
Resp
Set appropriate- ate value Each Required to perform quota allocations based on a territory hierarchy.
Select the appropriate value.
All automatic currency conversions use the rates defined in the conversion type entered in this profile.
OZF: Dashboard Baseline Sales Source Yes   Select the correct value   Source of Baseline Sales for Account Manager Dashboard
OZF: Days from Offer End Date to Start Auto Payout       10 Days This is the default number of days to wait after Offer's completion.
OZF: Default Budget for a Offer No Site All available budgets - Use this profile option to specify a default budget for the Budget LOV on the Create Offer page.
OZF : Default Currency Code No   Enter the correct value. USD (United States Dollar) Budgets can be created in multiple currencies. Oracle Channel Revenue Management automatically performs currency conversion based on the rates defined in this profile option.
OZF: Default Forecast Period Type       Month A profile option on which forecast time spread calculation is based.
OZF : Degree of Parallelism-Src     Enter a positive integer. 1 This profile is used for performance reasons. For example, running Oracle Channel Revenue Management on multiple servers saves processing time. Enter a positive integer such as 1, 2, 5 to reflect the number of processes that you want to run simultaneously. The suggested value is 1.
OZF: Enable Market Eligibility Group Conversion   Site   No This profile option is used to display the Group Name column in the market eligibility and adjustment pages. You can either select a predefined value from the Group Name drop-down list or you can configure the drop-down list values using the Offer Market Eligibility Group Number Mapping lookup.
OZF: Global Flag on Pricing     Global Flag checked Global flag Checked Offers, budgets, and pricelists include global flags that determine whether an offer, budget, or pricelist can be applied only within the same operating unit or not. You can control the global flag by setting this profile option, at site, application, responsibility, and user levels. The profile option and the global flag work together with the QP: Security Control Profile that is set in System Admin > Profile > System. The profile option is owned by Advanced Pricing.
You can set this profile option, to determine whether the global flag will be checked by default for an offer, budget, or pricelist. The consequences of this option are:
  • Global flag checked: The offer, budget or pricelist can be applied to transactions in all operating units. By default, the global flag is checked at the site level in the profile option.

  • Global flag unchecked: The offer, budget or pricelist can be applied only to transactions within the respective operating unit.

Important: If the QP:Security Control profile is set to OFF, the offer, budget, or pricelist can be applied across all operating unit regardless of whether the global flag is checked. To restrict offers, budgets or pricelists to transactions in a specific operating unit, you must first set the QP:Security Control profile to ON. The global flag only provides an additional level of control.

OZF : Global Start Date (mm/dd/yyy)   Site
Appl
Resp
  Suggested Value: "01/ 01/1997" This profile contains the earliest date you want to populate time structure from. Note that GL calendar should have data from that date onwards, without any breakages. It sets the absolute start date for Channel Revenue Management data. All data loaded into the Channel Revenue Management transaction tables, which refer time Structure tables, is collected as of this date. Historical data is maintained in Channel Revenue Management from this date forward.
OZF : Keep historical data for Baseline Sales and Promotional Lift Interface Tables       No A profile option to determine whether to keep historical data for Baseline Sales and Promotional Lift.
OZF: Net Amount Calculation for Bucket Volume Offers Yes Site   Line: Null
Group of Lines: Null
Use this profile option to calculate the selling price for a Bucket Volume offer when both the Tiers By field and theDiscount By field are set to Amount.
The profile option values are:
  • Line: Null, Group of Lines: Null

  • Line: Null, Group of Lines: For matching products

  • Line: For all matching attributes, Group of Lines: Null

  • Line: All matching attribute, Group of Lines: Matching product

OZF: Number of months to trend ship to volume for baseline calculations     Insert correct value between 0 and 100 months. 12 months Use this profile option to override using a value between 0 and 100 months. If a new product has no ship-to history (or the profile option is set to zero for all products), then the baseline is distributed evenly among the ship-tos.
OZF: Perform Non Retro Volume Tier Adjustments for New Accruals Only No Site Yes, No No Use this profile option to select all accruals or only the new accruals for volume tier adjustment.
OZF: Period Type       Month This profile contains the name of the period as defined in GL, for example 'Month'. Period Type sets the default period type for Channel Revenue Management. NOTE: 'x' Periods make a Quarter and 4 Quarters make a Year. Warning: The value in this profile cannot be 'Year' or 'Quarter'. Suggested Value: Month.
OZF: Process Net Accrual In Batch Mode Yes Site Yes or No No Default value is No. This profile determines if the Net Accrual Engine should generate accruals once for every time the program is run or for each transaction.
OZF: Record Count for Concurrent Offer Reconciliation No Site - Null This profile option determines the mode of synchronization for the reconciliation process.
If the profile value is Null or zero, reconciliation is processed synchronously.
If the profile value is a number other than zero, then:
  • If the number of utilizations for the offer is less than or equal to the profile value, reconciliation is processed synchronously.

  • If the number of utilizations for the offer is greater than the profile value, reconciliation is processed asynchronously.

OZF : Revert Earnings for Offer No Site
Appl
Resp
Yes or No Yes A value of Yes enables the earnings reversal for a given product/market eligibility when using Accrual, Trade Deal (accrual portion only), and Volume offers.
OZF: Start Day of Week       Monday Start_day of week: OZF_TP_START_DAY_OF_WEEK. The day of the week selected here is the day on which your financial week will begin. Only values of 1-7 are valid; they correspond to the days of the week, Sunday through Saturday. For example, choosing 2 means that the week starts on Monday (which is the suggested value).
OZF: Store Date in Qualifiers Yes Site Yes or No Yes Specifies the location to store date qualifiers in offers. If set to Yes, the date qualifier (for example, shipping date) is stored in the qualifier with grouping number -1. If set to No, the date qualifier is stored in the header.
OZF: Territories Limited to Operation Units Yes Site Yes or No Yes Use this profile option to determine whether quota allocation will be org-specific or non org-specific.
The default is set to No to ensure that all quota/dashboard functions work the same. This profile enables you to create and maintain territories for Channel Revenue Management purposes so that you do not have to set up all territories with account sites as matching attributes simply to work around the issue of not being able to segregate territories by operating units. Using this profile you can create and maintain territories for Channel Revenue Management purposes enabling you to segregate territories by operating unit. This eliminates the requirement of setting up all territories with account sites as matching attributes. For more information see How Oracle Channel Revenue Management Dashboard Uses Operating Units and How Oracle Channel Revenue Management Dashboard Uses Operating Units.
OZF: Third Party Accrual Price List
(Formerly: OZF: Offer Override Flag in QP
Yes Appl
Resp
Site
User
Enter correct value. Corporate This flag specified if offer overriding is allowed in Advanced Pricing.
  • Yes: Advanced Pricing users can only view the offers that are created in Oracle Channel Revenue Management. They cannot edit these offers.

  • No: Advanced Pricing users can view and edit offers that are created in Oracle Channel Revenue Management.

OZF: Treat Discount as an Expense       Yes Use this profile to determine is a Discount should be treated as an expense for ROI Calculation.
OZF: Validate Budget Ledger with Offer Ledger No Site Yes, No No Use this profile option for offer operating unit ledger and budget ledger validation
OZF: Validate market and product eligibility between object and budget No Site
Resp
Set correct value No Validate market and product eligibility between object and budget.
Values are:
No validation for customers and products.
Validate customer and products by each budget.
Validate customer by each budget, product by all budgets.
Validate product by each budget, customer by all budgets.
OZF: Copy Discount Line Start Date and End Date for Offer No Site
User
Operating Unit
Yes, No No Use this profile option to copy the discount line start date and end date for an offer.
This profile option is available for accrual and off invoice offers.
OZF: Quota Allocation By       Quantity Use this profile option to determine whether Quota allocation can be done by Quantity or by Amount at a particular site.
OZF: Display Checkbook Details on load No Appl
Resp
Site
User
Yes or No Yes at Site level Use this profile option to determine whether checkbook details are displayed by default, in offers.

Profile Options for User Interface Defaults Category

Set the following profile options for Oracle Channel Revenue Management UI Defaults:

OZF_UI_Defaults Profile Options - Category Code: OZF_UI_DEFAULTS
Profile Name Required Level Setting Default Effect/Limitation
OZF : Allow Manual Budget Adjustment for Global Offer No Site Select the required period No This profile option lets you perform manual budget adjustment across ledgers, if the value is set to Yes. The available values are Yes and No.
Set this profile option value to Yes to display the Global check box on the Budget Detail-Adjustments page.
OZF: Default Amount Formula Yes Site Formula supported in Advanced Pricing A valid formula from Advanced Pricing Sets the default formula for a discount rule where Discount Type = Amount.
OZF : Default Bucket for discount rules Yes Appl
Resp
Site
User
A value from Advanced Pricing Lookup PRICING_ GROUP_ SEQUENCE Base Price The default value for the discount rule default bucket. Order in which the modifiers are evaluated. Pricing buckets determine whether multiple offers and Advanced Pricing modifiers cascade from one another. Example: Product A regularly sells for $100. Two offers are created in Channel Revenue Management. One gives a 10% discount; the other a 15% accrual. How these offers are calculated in regard to the base price of $100 is based on this profile option setting. For example, the accrual could be calculated based on the net price of $90 (net of the discount offer).
OZF: Default Forecast UOM No Appl
Resp
Site
User
One of the available UOMs Each The default unit of measure (UOM) displayed on the Forecast page
OZF: Display KPI Alert       Yes  
OZF: Default Offer Activity Optional Appl
Resp
Site

User

Select the required activity from the LOV in the profile option. Trade Management Activity_Deal This profile option indicates default offer activity that should be populated on the offer creation page. If this option is not set, then offer users can select the offer activity on the offer creation page.
OZF : Default Offer Formula No Appl
Resp
Site
User
A pricing formula in Advanced Pricing A valid formula from Advanced Pricing The value selected here will be defaulted on offers created in Channel Revenue Management. An example of using a pricing formula is to handle discount rules for product categories when the unit of measure is not specified. Handles discount rules for product categories when the unit of measure is not specified.
OZF : Default Percent Formula Yes Site A formula supported in Advanced Pricing A valid formula from Advanced Pricing Sets the default formula for a discount rule where Discount Type = Percent. For example, if the value is set to Handling, then when changing the Discount Type to Percent the value of formula is set to Handling.
OZF : Default phase for Line Group level discounts Yes Appl
Resp
Site
User
A value derived from Event phase setup in Advanced Pricing All lines adjustment The default value for phase for all discount rules with a discount level of Group of Lines. Please see OZF : Default phase for Line level discounts above for a description of phase.
OZF : Default phase for Line level discounts Yes Appl
Resp
Site
User
A value derived from Event phase setup in Advanced Pricing All lines adjustment The default value for phase for all discount rules with a Line discount level. The phase in Advanced Pricing determines the timing of when offers and other modifiers apply, e.g. whether they apply during order booking or shipping. This option also determines how to resolve multiple conflicting offers or modifiers, e.g. by a better price or by precedence
OZF : Default phase for Order level discounts       All lines adjustment Pricing Phase ID for Order Level Discount.
OZF: Default Value for Associate Earnings Query Yes Appl
Resp
Site
User
Select the required year Current Year This profile will default the value in the Period drop-down list in the Claim Accrual Search region.
OZF : Default Value for incompatibility group No Appl
Resp
Site
User
Choose an incompatibility group from a list of available incompatibility groups set up in Advanced Pricing. Exclusive Group Incompatibility Group is setup Advanced Pricing, it determines how promotions will be grouped together and which ones will be applied together with other promotions. A fully accrued budget creates an offer in the background, and that offer will by default have this incompatibility group, so this concerns a fully accrued budget. Users can change this defaulted value while setting up the fully accrued budget.
OZF: Default value for print on invoice Yes Site Yes/No Yes The default for all discount rules.
OZF : Default value for product precedence Yes Appl
Resp
Site
User
User Defined 5,000 The default for all discount rules. Precedence is one of the criteria that can be used to determine which offers or modifiers are to be used when there are conflicts.
Precedence is used to resolve incompatibility. Precedence controls the priority of modifiers and price lists. If a customer qualifies for multiple modifiers that are incompatible with each other, precedence determines the discount that the customer is eligible for based on the precedence level of the modifier. Precedence is the final tiebreaker for the determining which offer to apply. A lower value has higher precedence than a higher value.
OZF: Offer Discount Yes Appl
Resp
Site

User

Line
Group of Lines
Line The default value for offer discount level. Example: if set to Line, and minimum volume is 5, then each order line must have a minimum quantity of five to get a discount. If set to Group of Lines, then multiple order lines with the same product will be evaluated together to determine whether the offer applies to the order.
OZF : Root Section For Price List Report       Root  

Setting Up Quotas

Set Up Quota Allocations and Alerts

A quota allocation is a sales goal that must be met within a specific period of time. Quotas are assigned by upper management down a sales team hierarchy based on territory structures that you create.

Quotas can be assigned as a monetary value or by quantity. For example, Ben Johnson, a Sales Representative for ABC Corp., may have to sell $25,000 worth of product during ABC Corp.'s third quarter if he has a quota based on monetary value. If his quota were quantity-based, he might have to sell 1,000 cases of product A and 500 cases of product B during that quarter.

You can also create threshold rules that trigger alerts sent to Sales Representatives (reps) regarding their quotas. These alerts are designed to help keep reps aware of their actual sales performance in relation to their quota.

Before you set up quota allocations and alerts, you must set up the Time Dimension Structure. For more information, See budget profile options for this procedure..

To set up quota allocations and alerts:

  1. Set Up Territories for Quota Allocations

  2. Set Up Quota Allocations

  3. Set Up Threshold Rules for Quota Related Alerts

Set Up Territories for Quota Allocations

To set up territories for quota allocations, follow the instructions listed under Setting Up Territory Manager for Oracle Channel Revenue Management and Setting Up Territories for Budgets.

Guidelines

Set Up Quota Allocations

These are the three parts of the setup for Quota Allocations:

As a prerequisite, you should set up territories for quota allocations, before setting up quota allocations.

Important: When a quota allocation that is based on territory hierarchy is published or updated, a workflow notification is sent to the primary contact of the territory node. Therefore, you should assign workflow responsibilities the primary contact of each territory node used for quota allocation. See Creating the Implementation User, Oracle Channel Revenue Management Implementation Guidefor the detailed procedure.

Setting System Profiles to Select Amount or Quantity

Log into Oracle Forms and select the Oracle Trade Management Administrator responsibility.

Navigation: Setup > Profiles

Profile = Quota Allocation By

Default Value: Quantity

Description: This profile option allows you to choose whether Quota allocation can be done by Quantity or by Amount at a particular site.

Setting System Profiles for Currency, Unit of Measure, and Conversion Type

Log in to Oracle Forms and select the Oracle Trade Management Administrator responsibility.

Navigation: Setups > Profiles.

Notes:

Set Up Threshold Rules for Quota Related Alerts

Threshold rules are created to trigger alerts that are sent to salespeople regarding their quotas. These alerts help keep salespeople aware of their actual sales performance in relation to their quota. Based on this knowledge, salespeople can make changes to their account plans to meet their goals.

Threshold rules can be set based on various conditions including:

As a prerequisite, Oracle recommends that you set up thresholds and quota allocations before creating threshold rules for quota allocation alerts.

Log in to Oracle Channel Revenue Management.

Navigation: Administration > Trade Management > Thresholds.

Notes:

Setting Up Budgets

Basic Setups

Creating Business Units for Budgets

When creating a budget, the list of values for the Business Unit field comes from the organizations defined in the HRMS application. For budgets, business units are used:

To create business units, log on with HRMS Super User responsibility.

Create Organizations of type "Business Unit".

Verifying Business Unit Creation

To verify that you have successfully created business units complete the following steps:

  1. Navigate to the budget creation page in Oracle Channel Revenue Management.

  2. Open the Business Unit drop-down list and verify that the business units you have created appear in the list.

Setting Up Multiple Currencies for Budget

Budgets can be created in multiple currencies. Although the budget may reflect multiple currencies, Oracle General Ledger postings use the functional currency defined by the set of books specified on the system parameters page. Channel Revenue Management automatically performs currency conversion based on the rates defined in the system.

Users can transfer funds to different budgets or request money from budgets in any currency. The source budget are not required to be in the same currency. When users request money in one currency, they will also see an approval notification and money transfer in the same currency. Similarly when the budget owner receives a request, the system automatically converts the requested amount to the budget currency. The budget owner then approves the amount in the budget currency.

Currency conversion for each transaction is recorded based on the currency conversion type specified by the OZF: Currency Conversion Type profile option. This profile is set at the site level. When viewing the budget, you will see both the transaction currency and the budget currency amounts.

How Budgets Use Operating Units

Associating a Ledger with a Budget

When you create a new budget in Oracle Channel Revenue Management you must associate a Ledger (Set of Books) with the budget you are creating. This ledger value drives the General Ledger accounts and the accounting for the budget.

Note: The information in this section is valid for both Fixed and Fully Accrued Budgets.

In Oracle Channel Revenue Management, the ledger ID values listed in the ledger LOV field on the budget creation screen are controlled by the data access set associated with the responsibility. A data access set is assigned to a responsibility to control which ledgers and balancing and management segment values you have access to when you log onto a responsibility.”

The Organization ID on the sales order against which the accruals are generated is validated against the Organization ID associated with the Ledger on the budget. If the two Organization IDs do not match, the system rejects the record and does not create any utilizations.

Once the budget is active, the ledger ID field is frozen for all users except Oracle Channel Revenue Management Administration users who can change the accounts on an active budget. They can change General Ledger accounts within the same ledger ID.

When you create accruals, the Organization ID is determined as follows:

Organization ID for Accruals
Offer Type Organization ID
Accrual, Off Invoice, Trade Deal, Terms Upgrade, Promotional Goods, Order Value, Volume Offer, or Net Accrual When you create a sales order in Oracle Order Management, the Organization ID is stamped on the sales order.
Scan Data, Lumpsum The Organization ID is associated in Channel Revenue Management when you crate an offer.

Budget Creation

The following information explains how to set up budget categories and budget thresholds. These are required steps for creating a budget.

Setting Up Budget Categories

Budget categories are used for the following: purposes:

To create categories for budgets, log in to Oracle Channel Revenue Management.

Navigation: Administration > Trade Management > Setup > Category > Create.

Notes:

Setting Up Budget Thresholds

Budget thresholds enable companies to:

These rules and parameters defined in the budget threshold are assigned to a budget.

Budget thresholds can be based on the following amount types:

To set up a budget threshold, use the following procedure, log in to Oracle Channel Revenue Management.

Navigation: Administration > Trade Management > Setup > Thresholds > Create.

Notes:

Associating General Ledger Accounts with Budget Adjustment Types

When you make adjustments to a budget you can specify the sales and liability account that you want to use for a particular budget adjustment type. The Budget Adjustment Type details screen contains the Sales/Expense Charge Account LOV and the Accrual Liability Account LOV.

The accounts defaulting mechanism is applied in Oracle Channel Revenue Management as follows:

Budget Approval

The following information explains how to set up budget approval rules in Oracle Channel Revenue Management. It also explains budget system status and user status in Oracle Channel Revenue Management.

Setting Up Budget Approval Rules

Approval rules are created to determine who approves budgets and under what circumstances. Approval rules for budget/root budget requests and transfers are evaluated based on the following:

The higher the number, the more important the parameter is in determining which approval rule will apply to a particular budget.

Root budget approval is always required unless 1) a child budget is submitted for approval and the owner also owns the parent budget, and 2) the sole approver is the budget owner.

Approval requirements are based on custom setups. Approval notifications are routed regardless of the responsibility the users have to access the notification. E-mail notifications can be used.

Two types of budget approval rules can be created:

Creating Budget Approval Rules

Use the following procedure to create budget approval rules.

Log in to Oracle Channel Revenue Management.

Navigation: Channel Revenue Management: Administration > Trade Management > Setup > Approval Rule.

  1. Click Create.

  2. Select a value for the Approval Rule for field:

    • Root Budget Request to define a rule for root budget request approvals.

    • Budget Request to define a rule for budget request approvals.

    • Budget Transfer to define a rule for budget transfer approvals.

    The page redraws and the fields might change.

  3. Complete the page as required for your business needs.

    • Start Date: The date when the rule becomes effective.

    • End Date: The date when the rule will no longer be used.

    • Organization: Displays a list of operating units

    • Setup Type: Custom setups created for budgets

  4. Click Create.

    The page refreshes and an Approvers table appears.

  5. In the Approvers table, specify the individuals who must approve this type of budget request or transfer.

    • Order: Enter any integers in ascending order.

    • Type: Select Function (for customized approval process), Role (defined for Channel Revenue Management and assigned to Resources - there can only be one person assigned to a Role), or User.

    • User/Role: Depending on the Type selected above, you will see a list of functions, roles or users.

    • Start Date: The date when the approval rule becomes active. Within the range of the approval rule, each line can also have a start date and end date.

    • End Date: The date when the approver is no longer active.

  6. Click Update.

  7. Ensure that the following concurrent processes are run. They find the correct rule and route the approval notification.

    • Workflow Background Process: Marketing Generic Approval (for root budget approvals)

    • Workflow Background Process: Marketing Approval (for budget request and transfer approvals)

The page redraws and the fields might change.

For more detailed information about budget approval see the section titled Budget Approval Process in the Channel Revenue Management User Guide. That section also describes the different statuses that a budget can go through.

Automating Budget Approval Rules

Users can set rules for themselves in Workflow to automatically approve budgets under a certain amount.

To create automatic budget approval rules in Oracle Forms, log into Oracle Forms and select the Workflow responsibility.

Navigation: Notification Rules > Create Rule.

Steps:

  1. Select AMS: Marketing Generic Approvals

  2. Select approval Required: [Approval Subject]

  3. Click Respond.

  4. In the Approved Amount field, enter an amount (no commas). All budgets under this amount will be approved automatically by this individual.

  5. Action = Approve.

    1. Workflow Background Process: Marketing Generic Approval (for root budget approvals)

    2. Workflow Background Process: Marketing Approval (for budget request and transfer approvals)They find the correct rule and route the approval notification.

For additional information about Approval Rules, see Budget Approval Process in the Oracle Channel Revenue Management User Guide.

Creating Budget Status Transition Rules

A budget goes through the following main system statuses:

Approval rules are used to determine the route from Draft to Active. Approval rules are highly configurable and multiple ones can be created based on the budget's characteristics.

The following table lists budget statuses used in Channel Revenue Management and a description of each.

Budget System Status
Status Description
Draft Budgets in draft status can be updated at any time in any way.
Draft status may be updated to Pending Approval or Cancelled.
It can also be updated to Active directly in case the budget owner is also the owner of the parent budget, and the parent budget is already Active.
Pending Approval The budget has been submitted for and is awaiting approval.
After all approvers have responded positively, a budget may become Active or On Hold.
If approvers reject the budget it will become Rejected.
On Hold On Hold is an interim status that is used when a budget has already obtained approval, and is just not completely ready to be made active.
At On Hold status, a user can then manually change it to Active or Closed.
Rejected Budget approvers have rejected the budget.
From Rejected, the status can be manually changed back to Draft.
Active The budget has been approved and is ready to fund various activities and promotions.
From Active, the status can be changed to Closed and Cancelled.
Cancelled Indicates that the budget has been aborted.
From Cancelled, the status can only be changed to Archived.
Archived Indicates that the budget can no longer be used.
This cannot be changed to any other status.
Closed From On Hold or Active, the Budget status can be manually changed to Closed.
It indicates that the budget has ended and is no longer available to fund activities and offers.

Budget Allocation

The following information provides the Oracle Channel Revenue Management setup information for budget allocation.

Allocating Budget on Prior Year Sales

Budget allocation enables a company to allocate money to each sales territory for the salespeople to spend. Allocation can be based on:

To set up budget allocation based on Prior Year Sales, run the OZF : Refresh Materialized Views for Order Sales concurrent program. Budget allocation makes use of Territories set up in Territory Manager, so it is also necessary to import the territories for Channel Revenue Management purposes.

Important: When a budget allocation that is based on territory hierarchy is published or updated, a workflow notification is sent to the primary contact of the territory node. Therefore, you should assign workflow responsibilities to the primary contact of each territory node used for budget allocation. See Creating the Implementation User, Oracle Channel Revenue Management Implementation and Administration Guide in this manual for the detailed procedure.

Setting Up Top-down and Bottom-up Budgeting

Budget amounts allocated from management down to lower levels is a top-down budgeting process. Budget amounts rolled up from lower levels to management, is a bottom-up budgeting process.

Oracle Channel Revenue Management enables you to automate the time-consuming budget process by facilitating communication between management and sales people at all levels in the sales hierarchy.

Top-down Bottom-up Budgeting the budget is allocated to various users within a territory hierarchy based on the territory's historical sales data. The budgeting process in Oracle Channel Revenue Management also enables users to submit feedback or negotiate a different allocation

For more information on Top-down and Bottom-up budgets see the section titled Top-down Bottom-up Budgeting in the Oracle Channel Rebate and Point-of-Sale Management User Guide. This section explains the entire top-down bottom up budgeting process, starting from creating a budget and allocating it, to reviewing inputs and activating the allocation.

Budget Utilization and Adjustment

The following sections describe information required to setup budget offer validation, budget requests, and budget adjustment types.

Validating the Budget Offer

Budget-offer validation validates that the market and product eligibilities of an offer fall within the targets of the budget. This option ensures that funds set aside for specific customers and products are used appropriately.

To set up budget-offer validation, set the OZF: Validate market and product eligibility between object and budget profile option to one of the following values at the site and responsibility levels.

Even if different parameters are used for defining eligibility. In the case where a budget uses Territories, but the offer uses Customer, the validation procedure can determine whether the offer meets budget criteria. For example, a budget says “US West” territory, but the offer says “Business World”. The procedure can determine whether or not the US West territory includes the customer Business World.

This validation option is useful in the following scenario. A sales representative is responsible for selling multiple products to a single customer account. These products belong to different brand managers, and each brand manager has his own budget, so if the sales representative wants to request funding for his promotion, he may request funds from multiple brand managers.

In such cases, it does not make sense to mandate that each brand manager's budget must cover all of the products in the promotion. Each budget should cover some products, but in total, all of the brand managers' budgets should cover funding for all products in the promotion. For example, a sales representative who sells regular cola and sports drinks to Bigmart, may in addition to his own funds also request the brand manager for regular cola to fund his promotion as well. The system should not fail the validation because the regular cola budget does not cover sports drinks.

In this scenario, a sales representative is promoting a particular product to multiple accounts in his territory and is requesting funding from budgets created specifically for some bigger accounts. For example, he is promoting product X to both Goodway and Bigmart, and in addition to funding it from his own budget, he may also request money from a bigger budget set aside for Bigmart nationally. In this case, the system should not fail the validation simply because the Bigmart national budget does not cover Goodway.

Validation occurs at the same time for both market and product eligibilities. If validation fails, an error message is sent to the offer owner. The status of the offer reverts to Draft.

Calculating Accruals

The Funds Accrual Engine program handles Accrual Management capabilities in Oracle Channel Revenue Management.

Accrual Components

This engine enables you to calculate Budget Accrual Liability. All features listed below are implemented through the same concurrent process. Ability to calculate budget utilization and earnings based on ship confirmed orders.

Volume Offer Rebate Calculation

Volume Offers, whether on an off invoice or accrual basis, are frequently used incentives to customers, buying groups or partners, based on their cumulative purchase volume over a period of time. Volume offers are common in all industries and can apply on both direct and indirect sales data.

The Oracle Channel Revenue Management Volume Offer feature reduces the number of volume offers you need to create and maintain. Using a single volume offer you can accomplish the following:

Adding a Discount Table

An Discount Table in Oracle Channel Revenue Management supports volume ranges, discounts and product and category selections.

Note: One volume offer can support multiple discount tables.

Discount Tables include the following features:

Creating Multiple Discount Tables for a Volume Offer

In the following example you can use one volume offer to cover multiple discount tables for different products.

In this example, Company Z sells 4 product lines to thousands of customers. With each of its top 100 customers, its sales managers negotiate an annual volume rebate promotion. These promotions may factor in sales growth objectives. For example, a customer's purchase volume last year may be $5 million; to incentivize the customer to exceed that volume, a volume rebate may be created that offers an extra rebate if volume exceeds $5 million.

While configuring products you can specify the start date and end date. For products other than Item Number, exclusions can be specified as well. Advanced options for all products can be specified (mass update) before the offer is active.

Although each customer's promotion is similar to all the others, each customer gets a different set of rates for different product lines. Ideally Company A would like to create just one volume offer per customer. The following table shows how Company A can create one volume offer to cover the scenario described above.

If Product is Volume falls within: Offer Discount:
A $1-$5 million
$5-$6 million
3%
4%
B $1-$10 million
$10 million +
3.5 %
4%
C and D combined 1-150,000 cases
150,001-175,000 cases
175,000 cases +
$0.25 per case
$0.30 per case
$0.35 per case

Performing Budget Mass Transfers

Promotional offers to customers may span multiple fiscal periods. During the changeover of fiscal periods, new budgets will be established, while the old ones reach end date. Since the offers may not be fully utilized in the old period, they will continue to be executed. Utilizations of these offers that happen in the new period should be tracked in the budgets in the new period.

Run the OZF-TM : Unutilized Commitment Mass Transfer concurrent program to automatically create new budgets for the next fiscal period and optionally transfer all unutilized budgets to the new budget. You can use several parameters to define their query criteria to pick up the budget.

You can use budget mass transfers to:

The concurrent program automatically creates new budgets for the next fiscal period and optionally transfers all unutilized budgets to the new budget. You can use several parameters to define their query criteria to pick up the budget.

When you open a next year's budget by running the above concurrent program. He can change the budget amount of the new version and submit it for Approval.

While running above concurrent program, if the old budget's end date is reached and new budget is still in "Draft" status, the new budgets will be activated automatically with budget amount zero.

While running above concurrent program, if the old budget's end date is reached and new budget is in Active status, the unutilized budget amount from old budget will be transferred to new budget. If the old budget's end date is reached and new budget's budget amount is zero, the transferring unutilized will occur depend on the profile setting.

Using the Budget Adjustment and Utilization Public API

When you use the Budget Public Adjustment and Utilization API you must create different adjustment types if you want to distinguish original accrual versus subsequent adjustments. The adjustment type name can handle X characters.

This API prorates the adjustments among the budgets from which the offer is sourced. For example, when an offer is sourced from multiple budgets and the adjustment record does not refer to any one particular budget as a target for the adjustment, the API will identify the budgets used to source the offer and allocate accordingly the adjustment among these budgets.

When using the Budget Public Adjustment and Utilization API you must have at least one active offer/price list created in Channel Revenue Management. You also need to create adjustment types.

For accounting purposes, when earnings are affected by the adjustment and the Post to GL flag is checked in system parameters, the following occurs:

When earnings are affected by the adjustment and the Post to General Ledger flag is checked in system parameters, but no General Ledger accounts are passed to the API, the appropriate account is derived using defined Account Derivation Rules.

You can adjust the budget at the Beneficiary level when the offers have associated beneficiaries.

Creating Adjustment Records that Update Paid Column

A new adjustment type updates the Paid column. In the Budget Public Adjustment and Utilization API, adjustment records that update the paid column are always associated with a utilization, an accrual record or another adjustment record, regardless of whether they are created manually or from the API. Only the paid column is affected by this adjustment.

The pay over earnings threshold does not need to be enforced by API because it is on a claim. However, since this type of adjustment is considered in the total paid balance it does affect other claims' threshold checking.

Setting Up Budget Adjustment Types

The budget adjustment types you create allow budget owners to manually adjust budget checkbooks. For example, budget owners can adjust (decrease) the earnings committed to customers who fail to meet offer performance requirements. The funds they free up can then be allocated to other activities.

When creating adjustment types, you can utilize a different set of Oracle General Ledger accounts for budget adjustments than the ones originally used for accruals. This functionality allows you to skip the Account Derivation Rules that you defined for simple Oracle General Ledger postings.

Example: A customer's accruals are not paid at the end of the month. Instead, an adjustment is made to the offer. Based on the adjustment type, the funds are put into a single pool—a common set of Oracle General Ledger accounts used for all offer adjustments.

If you plan to use different Oracle General Ledger accounts for budget adjustments, then as a prerequisite, those accounts must be set up in Oracle General Ledger before creating budget adjustment types.

To set up budget adjustment types, log in to Oracle Channel Revenue Management.

Navigation: Administration > Trade Management > Budget > Adjustment Types.

The following table lists and describes the Budget Adjustment types:

Budget Adjustment Types
Type Description
Decrease Committed Amount You can decrease a commitment if funds have been already committed for that activity. A validation is performed - budget commitments can be decreased only to the extent of the balance left after budget utilization. Negative commitments and earnings are not allowed.
Decrease Committed and Earned Amount In addition to the above validation, earning validations listed below would also be performed. To post negative earning against a budget a positive earning must exist. If no earning exists for the budget, the user will receive an error message.
Decrease Earned Amount Allows earning decreases against any budget. Amount cannot exceed the balance left after budget utilization. May be done because a customer fails to meet the performance criteria of an offer.
Increase Earned Amount Allow earning increases against any budget.

Setting Up Recalculated Committed

This functionality recalculates the funding level based on the sales performance of a promotion. Funds can be increased or decreased. If the promotion performs well, funding can be automatically increased, and vice versa. This ensures that funds do not run out for promotions that are performing well.

The committed amount determines the maximum allowed Utilized amount. The relationship is reversed for Re-Calculated Committed. If Re-Calculated Committed is implemented then the Utilized amount determines what Re-Calculated Committed amount should be.

Subsequent budget requests from offers will increase the committed amount of the budget - not the Re-Calculated Committed.

For example, Budget A has the following numbers:

Offer A then requests money from Budget A. Offer A is for $2,000. The user submits Offer A for budget approval for $2,000 from Budget A. Offer's status is now at Pending Budget Approval. As a result, Budget A's numbers are updated as follows:

Once the budget request for offer A is approved, Offer A has Active status. Budget A is updated as follows.

Budget Security, Reporting, and Reconciliation

Budget reporting uses Oracle Channel Revenue Management (ChRM) Extensions for Oracle Endeca.

Setting Up Budget Security

Not every user can update or view a budget. The table below explains the different access levels for budgets.

Budget Security Levels
Security Level User Name Security Level Access
1 AMS: Admin Group Update all fields:
  • Excluding those locked by system

  • Including those locked by locking rules

2 Owner Update all fields:
  • Including Owner field

  • Including adding Team

  • Excluding those locked by system

  • Excluding those locked by locking rules

3 Team members with Edit Metrics Update all fields:
  • Excluding Owner field

  • Including adding Team members

  • Excluding those locked by system

  • Excluding those locked by locking rules

4 Team members without Edit Metrics View budget only
5 Everyone else No access, no view

Based on the responsibility of the user creating the budget, budgets are created with an organization ID (or operating unit ID). This ID does not drive update or view access to a budget.

From any Budget Request screen, the list of values for available budgets displayed follows the security levels described above. This means that, a budget requestor will only be able to request money from budgets for which he is either an owner or a team member.

Unlike claims which are org-striped, budgets are not org-striped. They are, however, stored with the organization ID (according to the responsibility of the user who created the budget). Budget Utilization is org-striped.

The following table describes the various access levels of objects (such as offers, campaigns, events) and as they relate to which users can access the Budget cue card with each object. Not everybody with access to an object will automatically have access to the Budget cue card or the Budget Request function.

Object and Budget Security Levels
Number User Name Security Level Access
1 AMS: Admin Group Update all fields:
  • Excluding those locked by system

  • Including those locked by locking rules

2 Owner Update all fields:
  • Including Owner field

  • Including adding Team members

  • Excluding those locked by system

  • Excluding those locked by locking rules

3 Team members with Edit Metrics Update all fields:
  • Including adding Team members

  • Including Cost & Revenue Cue Card

  • Including Budget Cue Card

  • Excluding Owner field

  • Excluding those locked by system

  • Excluding those locked by locking rules

4 Team members without Edit Metrics Update all fields:
  • Excluding adding Team members

  • Excluding Cost & Revenue Cue Card

  • Excluding Budget Cue Card

  • Excluding Owner field

  • Excluding those locked by system

  • Excluding those locked by locking rules

5 Everyone else, regardless of operating unit View only

For more information about notes, team, and product options, see the Oracle Channel Rebate and Point-of-Sale Management User Guide.

Setting Up the Customer Budget View

With the Oracle Channel Revenue Management Customer budget view you can collect customer earnings and payment, and the outstanding earning balance by budgets. Using this type of data you can give companies access to accurate aggregate data to monitor fund usage. Although Oracle Channel Revenue Management provides the data for this information you will have to use a type of reporting tool to view the information.

Concurrent Process for Data Collection

Oracle Channel Revenue Management uses the Refresh Materialized Views (for the parameter Customer Budget View) concurrent process to collect data.

View by Dimension

You can use Oracle Channel Revenue Management to write meaningful budget reports containing, the balances described in the previous section. These balances are available for a variety of dimensions listed below. Each dimension is available in IDs and is stored in Materialized View tables. You must provide ID names at the time of report generation.

Dimensions

To set up budget reconciliation run the OZF_TM:Release Committed Budget Amount After Grace Period concurrent program.

Setting Up Budget Roll-up Views

Budget roll-up view displays a budget's own amount plus all numbers of its descendent budgets.

Budgets can be allocated and arranged in a hierarchy, the roll-up view gives an organization a “birds-eye” view of all budget balances summed up to each level. Activities and usages can be viewed by drilling down into different numbers such as committed, utilized. When drilled down from a roll-up view, the details will show for the budget itself and all of its child budgets.

For example, if a budget called “California” has committed amounts of $10,000 and a budget called “Oregon” has $20,000 and their parent budget “Western US” funds no other activities, the roll-up view committed is $30,000.

To set up budget roll-up views, log into Oracle Forms with the System Administrator responsibility.

Notes:

Setting Up Budget Reconciliation

Budget reconciliation is a way to return money at the end of an offer. It can be done manually or automatically.

Setting Up Customer Accounts

Setting up the Account Manager Dashboard

The Account Manager Dashboard displays data for all the accounts in the territories owned by the logged in user. Dashboard data is current as of the last time the Refresh Account Manager Dashboard concurrent program was run.

Use the following high level procedure to setup Account Manager Dashboard. As a prerequisite, quota must be allocated for the user.

  1. Schedule the Workflow Background Engine with the parameter OM Order Line. This process closes orders and refreshes the MTD, QTD, and YTD KPI data in the My Accounts and My Products regions.

  2. Run the Refresh Materialized View for Order Sales concurrent program. This program refreshes sales information and the sales performance graphs in the dashboard.

  3. Run the OZF: Refresh Account Manager Dashboard concurrent program. This program refreshes the data on the dashboard.

Using Account Planning

Salespeople use the account planning functionality to plan and execute the activities they will use to meet their quotas. It is also used to monitor the performance of their retailers and active offers. Whatever you see in your account is based on the territories to which you are assigned. Tools provided include Gantt charts, sales graphs, and the following:

Tool Description
Account Manager Dashboard Displays the performance of all of the account manager's customer accounts.
Account Summary Displays the summary of all trade activities planned or being executed for a customer account for a given time period.
Offer Evaluator Enables sales representatives to evaluate the performance of past and current offers.
Discount Calculator Determines what discount will be beneficial to both the manufacturer and the retailer before actually creating an offer.

Personalizing the Dashboard

Configuring Related Links

You can personalize the Dashboard by clicking the Personalize Page button and going to the Related Links region. You can rearrange the order of the links, add additional links or hide links. Configurations are defined at the responsibility level by the Trade Manager Responsibility level. You can configure the following internal dashboard options in the Channel Revenue Management dashboard:

Setting Up Promotional Forecasting

Baseline and lift factors enable you to predict the performance of offer and promotional activities so you can reach your sales objectives. They help you to better understand past promotion performance, determine the best offers to make, and forecast future sales.

Channel Revenue Management contains an interface table which you can populate with baseline and promotional lift data in different dimensions including time, product, customer, offer type, offer activity, and territory.

First, load pre-translated baseline data into a .csv file. Keep this file in a specific location as described in the Setting Up Directory Object section. Oracle recommends translating this data into the following standards:

Source data is often provided at the market (geography) level. Territories are set up to map specific ship-tos to markets. Depending on the level at which the source data is provided, the upload concurrent program, Refresh Materialized Views, determines the ship-tos that map to the source data. An allocation process, such as Quota Allocation distributes the baseline value among the ship-tos in proportion to historical shipments.

Setting Up Directory Object

Follow these steps to upload third party Baseline and Lift data into Oracle Channel Revenue Management:

  1. Manually create a directory object in the same environment as your Oracle Channel Revenue Management database. A directory object is a database object that stores the absolute path of a physical directory on the database node.

  2. Name this object OZF_BASELINE_SOURCE_DIR, and verify that the database server can read and write from the location identified by the directory object.

    • For example, create the directory object in APPS as follows: CREATE or replace DIRECTORY OZF_BASELINE_SOURCE_DIR AS '/emslog/tm'

  3. If the object is not in APPS, you must also grant read/write access to APPS as follows

    • Grant READ access on directory OZF_BASELINE_SOURCE_DIR TO apps

    • Grant WRITE access on directory OZF_BASELINE_SOURCE_DIR TO apps

Setting Up Territories in Oracle Territory Management

For complete information on setting up territories see the Oracle Territory Manager Implementation Guide. Set up Territories in Territory Management corresponding to the territories in the data:

  1. Add the respective Sales Accounts and Geography in the Matching Attributes of these Territories.

  2. Run the following two concurrent programs to pull territory setup in Channel Revenue Management.

    • Import Territory Hierarchy

    • Generate Party List for Market Qualifiers

Setting Up Products in Oracle Inventory

Set up products in Oracle Channel Revenue Management corresponding to the products in the data. For more information see the Oracle Inventory User's Guide.

Setting Up Trade Mediums and Activities

Set up all trade mediums and activities, corresponding to the set up mentioned in the data.

  1. Log in to Oracle Channel Revenue Management with Trade Management User responsibility.

  2. Go to Channel Revenue Management: Administration >Setup.

  3. Click on the Activity cue card under Setup.

  4. Click Create button.

  5. Select Deal from the Channel Category LOV.

  6. Select the Marketing Medium Cue Card under Setup.

  7. Click Create and associate the activity you created in Step 4.

Trade mediums are defined as promotional sales activities such as Aisle Displays, Coupons, Shelf Talker, and newspaper advertisements.

Typically, vendors provide lift data with varying combinations of activities which may include in-store Displays, Features, and marketing media (advertising) as shown in the following examples.

To support User-defined lift activities, you must decide which activities you want to use. During offer forecasting, the offer's trade mediums will be mapped to these activities to determine the lift multiplier to use. You can provide names for the activities and determine which trade mediums activities belong to each group. An example of activity types and the typical members (trade mediums) would be:

Activity #1 Display

Activity #2

The administrator should define and name the activity types that will be used, determine the precedence order of the activity types that will control how lifts are calculated and define and load Trade Medium choices into the appropriate activity “buckets” during the lift data load process.

Setting Up Lookups and Profiles

To set up the Data Source Lookup use the lookup OZF: Baseline Sales and Promotional Lift Data Source(OZF_BASELINE_DATA_ SOURCE). To seed the data use values similar to Code: ACN Meaning: AC.Nielsen.

You can use this seeded code in data_source column code in the baseline data csv file as well as in the lift factors csv file.

Set up the following profiles:

Creating Baseline Sales Data File

Create your baseline sales data files and store them in the same location to which OZF_BASELINE_SOURCE_DIR is pointing.

The following table list the column description of the 3rd Party Baseline Sales flat file:

Third Party Baseline Sales
Name Status Description
DATA_SOURCE Required Lookup code as entered by the implementor in the extensible lookup for Data Source for Baseline Sales and Promotional Lift Factor Data .
MARKET_TYPE Required Customer identifier - same as TERRITORY.
MARKET_ID One of the two, id or name is required. Id as in the customer identifier. For example, territory Id.
MARKET_NAME One of the two, id or name is required. Name as in the customer identifier. For example, Territory Name
ITEM_LEVEL (required) This is the Required Product identifier - same as 'PRICING_ATTRIBUTE1'.
ITEM_ID One of the two, id or name is required. Id as in the product identifier. For example, inventory item Id
ITEM_NAME One of the two, id or name is required. Name as in the product identifier. For example, concatenated_segments .
TRANSACTION_FROM_DATE Required Start Date for the Data
TRANSACTION_TO_DATE Required End Date for the Data
BASELINE_QTY One of the two, quantity or name is required. Baseline Sales in Quantity in UOM_CODE
UOM_CODE Required if quantity is present UOM_CODE for Baseline Sales in Quantity
BASELINE_AMT One of the two, quantity or name is required. Baseline Sales in Amount in CURRENCY_CODE
CURRENCY_CODE Required if amount is present CURRENCY_CODE of Baseline Sales in Amount

As an example, your baseline sales data could appear as follows:

"IRI","TERRITORY",,"Name of My Territory","PRICING_ATTRIBUTE1",,"CM18759","20061001","20061231","1000","Ea",,""

"IRI","TERRITORY","1924",,"PRICING_ATTRIBUTE1","149",,"20060301","20060531","","","12000","USD"

Creating Promotional Lift Factors Data File

Create your promotional lift factors Data Files and keep them in the location to which OZF_BASELINE_SOURCE_DIR is pointing:

Column Description of the Third Party Lift Factors flat file
Name Status Description
DATA_SOURCE Required Lookup code as entered by the implementor in the extensible lookup for Data Source for Baseline Sales and Promotional Lift Factor Data .
MARKET_TYPE Required Customer identifier - same as TERRITORY.
MARKET_ID One of the two, id or name is required. Id as in the customer identifier. For example, territory Id.
MARKET_NAME One of the two, id or name is required. Name as in the customer identifier. For example, Territory Name
ITEM_LEVEL Required Product identifier - same as 'PRICING_ATTRIBUTE1'.
ITEM_ID One of the two, id or name is required. Id as in the product identifier. For example, inventory item Id
ITEM_NAME One of the two, id or name is required. Name as in the product identifier. For example, concatenated_segments .
TRANSACTION_FROM_DATE Required Start Date for the Data
OFFER_TYPE Required Offer_code of the type of offer ACCRUAL - Accrual
DEAL - Trade Deal
LUMPSUM - Lumpsum OFF_INVOICE - Off Invoice
OID - Promotional Goods
ORDER - Order value
TERMS - Terms Upgrade
VOLUME_OFFER - Volume Offer
ACTIVITY_ID   Trade Activity ID
ACTIVITY_NAME   Trade Activity name
TRADE_TACTIC_ID1 through TRADE_TACTIC_ID10   Trade Medium Id
TRADE_TACTIC_NAME1 through TRADE_TACTIC_NAME10   Trade Medium name.
TPR_PERCENT Required Trade promotion discount percentage for the product.
LIFT_FACTOR Required Lift Factor as a multilplier (for example, 0.10 for 10% lift)
For example, "IRI","TERRITORY",,"My Sales Territory","PRICING_ATTRIBUTE1",,"CM18759","20061001","20061231","",,,,,,,,,,,,,,,,,,,,,,,10,0.12
"IRI","TERRITORY","1924","","PRICING_ATTRIBUTE1",201,"","20061001","20061231","",,,,'End Aisle Display',,"Banner",,"TV Ad,,,,,,,,,,,,,,,10,0.12

For example your data could appear as follows:

"IRI","TERRITORY",,"My Sales Territory","PRICING_ATTRIBUTE1",,"CM18759","20061001","20061231","",,,,,,,,,,,,,,,,,,,,,,,10,0.12

"IRI","TERRITORY","1924","","PRICING_ATTRIBUTE1",201,"","20061001","20061231","",,,,'End Aisle Display',,"Banner",,"TV Ad,,,,,,,,,,,,,,,10,0.12

Loading Data into the Baseline Sales Interface

The following information lists the steps for running the Baseline Sales request set and the Lift Factors request set:

Load Third Party Baseline Sales:

  1. Baseline Sales and Promotional Lift Factors Flat Files Upload Preprocessing

  2. Baseline Sales Flat File Upload Table Creation

    • Name of Directory Object Containing the file

    • Name of Baseline Sales flat file

    • File name to store the log

    • File name to store all bad records

    • File name to store all discarded records

  3. Baseline Sales Flat File Upload - Pass 1

    • Data Source (Choose 'IRI' from the dropdown)

  4. Baseline Sales Flat File Upload - Pass 2

    • Data Source

Load 3rd Party Promotional Lift Factors:

  1. Baseline Sales and Promotional Lift Factors Flat Files Upload Preprocessing

  2. Promotional Lift Factors Flat File Upload Table Creation parameters:

    • Name of Directory Object Containing the file

    • Name of Promotional Lift Factors flat file

    • File name to store the log

    • File name to store all bad records

    • File name to store all discarded records

  3. Promotional Lift Factors Flat File Upload - Pass 1

    1. Data Source (Choose 'IRI' from the dropdown)

  4. Promotional Lift Factors Flat File Upload - Pass 2

    • Data Source

Check the log file for errors. Correct the CSV file and the errors and re-run the request set.

Setting Up Budget Utilization Views

Channel Revenue Management collects and summarizes budget balances for use in creating reports. Budget utilized, earned and paid columns can all be tied specifically to a customer's transactions regardless of how the budget was “committed”. Earned minus paid is the actual accrual balance. The customer budget view is now based on the transactions of the customer.

The following table describes Utilized budget balances available in Channel Revenue Management:

Utilized Budget Balances
Utilizations Description
Order related utilizations (positive), such as those for accrual and off-invoice offers Utilizations for orders booked but not shipped, invoiced or closed. These utilizations are not the same as “earned” balances.
Return related utilizations (negative) Utilizations for return orders booked but not invoiced (credited) or closed.
Non-order related utilizations. For example, those for lump sum and scan data offers, as well as utilizations created by net accrual offers, partner activities or indirect sales purposes. There is no difference between utilized and earned.

The following table describes Earned budget balances available in Channel Revenue Management:

Earned Budget Balances
Utilizations Description
Order related (positive) Earned balances for orders shipped, invoiced or closed
Return related (negative) Earned balances for return orders invoiced (credited) or closed.
Non-order related utilizations and utilizations created by net accrual offers, partner activities or indirect sales purposes. Identical to Utilized
   

The following table describes Paid budget balances available in Channel Revenue Management:

Paid Budget Balances
Utilizations Description
Off-invoice types of utilizations such as off-invoice, order value and promotional good offers Paid amounts are the same as earned amounts.
For accrual types of utilizations such as accrual, lump sum and scan data offers. Paid amounts are claim amounts associated to the accruals.
  All adjustments to the paid amount, whether manually created, created by public API or system generated.

Important: For direct sales order lines, the offer checkbook detail region shows invoice information from the receivable table. If the receivable table contains large volume of data, you can create a custom index on the RA_CUSTOMER_TRX_LINES_ALL table's INTERFACE_LINE_ATTRIBUTE6 column.

View by Dimensions

The balances described in the previous tables are available for the following dimensions. Each dimension must have a unique ID. For performance reasons only IDs can be stored in MV (Materialized Views) tables. You must provide names for these IDs at the time of report generation.

Cross Drill Downs

In addition to the simple reports administrators can also build reports with cross drill down from one dimension to another as shown in the following examples:

Setting Up Retail Price Capture

Defining Retail Attributes and Store Conditions

Channel Revenue Management captures price and facing data by account ship-to category. Channel Revenue Management can also capture user defined promotional activities for products (as well as their competitors) in retail store locations. Follow these steps to capture user defined promotional activities:

  1. Define store condition metrics you want to track by determining what specific product data to track.

  2. Establish territory-store relationships by determining the specific stores to include in your retail coverage territory.

  3. Capture store specific field data by collecting store-product data for stores in the territory and track that data over time.

  4. View store conditions by viewing current store-product status.

Defining Store Tracking Conditions

Channel Revenue Management defines two different types of stores:

Using Oracle Channel Revenue Management the Account Manager can define all of the DSD and DC stores for which he is responsible even if they fall outside of his territory.

Direct Store Delivery (DSD) Model

An example of a DSD model is a soda distributor who services all of Kroger's stores with their own delivery trucks. This type of setup makes each store a Ship-To site. Each store now has a retail outlet where they can track retail conditions, and a ship-to site for distribution.

Direct Distribution (DC) Store Model

In the following example the cookie manufacturer delivers through the retailer's distribution chain and the retailer is centrally managed. All transactions are processed through central billing and all deals are negotiated at Headquarters. From an Oracle Trade Planning Management perspective, stores are data points where the retailer in-store performance is tracked for compliance.

Assigning Stores to Territories

The Retail Audit Condition Capture and Retail Condition status screens have a Location LOV containing a customized list of DSD and DC stores relevant for each territory.

The OZF: Generate Party List for Market Qualifier process collects all Stores (DC/DSD) for each customer in the account manager's territory. Each time you run this process it adds new Stores in the Territory to the list. The resulting list includes the Store party-sites and Ship-to's in the territory for each customer.

Editing Retail Store List

Follow these steps to edit the retail store list in Channel Revenue Management:

  1. Select a Territory in the Territory LOV to retrieve the current store list. The Administrator has access to all Territories.

  2. Select a customer from the customer LOV. The LOV lists all customers in the territory.

  3. Click Search to list all of the customer stores tied to the territory.

  4. (Optional Step). Add a Store to Retail Territory by clicking Add Another Store icon. All Stores for this Customer are displayed and you can select the stores to add to your current Territory list.

  5. (Optional Step). To remove or delete a store from the Retail Territory list, click the Remove icon.

Setting Up Activity Summary and Offer Evaluator

The Activity Summary displays all the Offers and Campaign Schedules. The Offer Evaluator displays all offers and their forecasted and/or actual sales information.

As a prerequisite, offers and campaigns must exist in the system.

To set up activity summary and offer evaluator, run the Refresh Trade Management Activities (Offers and Schedules) concurrent program.

This program populates de-normalized (flattened structure of all the information in a table) tables with current information for new and changed Offer and Schedules. Both the Activity Summary and Offer Evaluator data is current as of the last time this concurrent program was run.

All of the activities in the account plan and Offer Evaluator are current as of the last time the Refresh Trade Management Activities (Offers and Schedules) concurrent program was run.

Setting Up Offers

Basic Setups

The following information describes the required setups for implementing offers.

Configuring Offer Payout

For accrual-type offers, the offer owners can specify:

To implement this functionality, you must:

  1. Verify the following lookups:

    • OZF_AUTOPAY_METHOD

    • Meanings are Issue Credit and Account Credit

    • OZF_AUTOPAY_CUST_TYPES

    • Meanings are Customer Name; Customer - Bill To; Customer - Ship To

  2. Set up the OZF : Claims Autopay concurrent program to run every day.

The Autopay program checks to see which offers meet the pay out date specifications. When an offer meets this criteria a claim is created and settled. The offer owner is notified when payment is made.

The Frequency and Frequency Unit fields determine how often the Claims Autopay concurrent program creates claims.

Setting Up Offer Theme Approval

Theme approval functionality allows businesses to require upper management approval for promotional ideas prior to allocating budget resources. Use of this functionality is optional.

To implement theme approval for offers, you must verify the lookup OZF_OFFER_STATUS.

Offer theme approval functionality is enabled and disabled by selecting an option called Theme Approval when you create custom setups for offers. For more information on custom setups, see the Creating Custom Setups section in the Oracle Channel Revenue Management Implementation and Administration Guide.

Setting Up General Ledger Postings

You can configure Oracle Channel Revenue Management to transfer General Ledger (GL) postings for offers from the Channel Revenue Management interface to the Oracle General Ledger interface table.

Posts to Oracle General Ledger occur when:

Posts will not occur to Oracle General Ledger when the following offers are associated with an order:

If posted to the budget checkbook, the Utilization and Paid columns will reflect the value.

To configure Oracle Channel Revenue Management to transfer Oracle General Ledger (GL) postings for offers, run the Create Accounting concurrent program with the Transfer to GL and Post to GL parameters set to Yes.

This program creates accounting entries in Oracle Subledger Accounting first and then transfers these journal entries to Oracle General Ledger posting them from Oracle General Ledger's interface to General Ledger tables.

To transfer these accounting transactions from Oracle General Ledger's interface, you can also run the Journal Import and/or Post to Oracle General Ledger programs from General Ledger with Source equals Channel Management option.

To set up Oracle Channel Revenue Management to post offers to Oracle General Ledger, follow these steps:

  1. Log in to Oracle Forms and select the Oracle Trade Management Administrator responsibility.

  2. Run the Create Accounting concurrent program and select to transfer the accounting entries to Oracle General Ledger.

    While running this program, you can submit journal import at the same time. Or, you can wait for the request to finish and then:

    • Switch to the General Ledger responsibility.

    • Run Journal Import separately for the Marketing source from the Run Journal Import screen in Oracle General Ledger.

  3. Switch to the General Ledger responsibility and navigate to Journals > Enter.

  4. Query the journal entries using the source Marketing.

  5. Review the journal details.

  6. Post the journal batch by navigating to More Actions > Post Batch.

    Once posting is complete, the batch status changes to Posted, and the respective account balance is updated.

Setting up Funding Sources

You can source individual offers from either a campaign (parent) or a budget directly. This allows offers the flexibility to define its funding source. When a campaign is the funding source of an offer, the campaign acts like a “mini-budget”. The offer can only source up to the available amounts the campaign contains.

Sourcing funds for offers from a campaign or budget functionality allows the sales manager to create multiple campaigns from a single budget and assign owners to specific campaigns. These functions enhance the manager's ability to monitor spending. These functions also permit the sales person to source funding for Trade Deal type offers from either a campaign or a budget, which simplifies the offer execution process.

This functionality is based on the profile OZF : Source from Parent Object. See Profile Options for Trade Planning for details.

Setting Up Custom Beneficiary

You can select and save beneficiaries while creating an offer at the header level or the customer level. From the Beneficiary LOV select Custom Beneficiary to customize and automatically display a beneficiary at an accrual level. Selecting Custom Beneficiary lets you add a unique beneficiary to any transaction. The custom beneficiary executes the configurable API OZF_CUSTOM_BENEFICIARY_PUB to retrieve a value for the beneficiary for every accrual record. The name of this public API is Get Custom Beneficiary.

Offer Adjustment

Setting Up Backdating

Manufacturers must often alter the original conditions of an offer while it is still active. You can adjust discount terms and product groups by using Oracle Channel Revenue Management's backdating functionality. Using the backdating functionality in Channel Revenue Management, you can enter an active offer and adjust the discount terms, product group involved, and market eligibility for accrual and off invoice offers.

Manufacturers must often alter the original conditions of an offer while it is still active. You can adjust discount terms, product groups, and market eligibility by using Oracle Channel Revenue Management's backdating functionality for accrual and off invoice offers.

For backdating, the Offer Adjustment Function is available for user-defined role. Access to the “Offer Adjustment” page is determined by the user's role and responsibility.

You can use Offer Adjustment, when active, for planned, active, and draft versions of the following offer types:

Use the backdating concurrent process to initiate a search for all postings relating to the specific offer, sort by customer and product and calculate the corresponding differential.

The differential is posted to the checkbook by product. The posting is categorized as a backdating adjustment and the Oracle General Ledger posting occurs in the same month that the concurrent process is run. Backdating adjustments, as well as adjustments of all types made to an offer, are reflected in the Claims Association Offer Summary view.

The Funds Accrual Engine concurrent process creates the backdated adjustment accruals.

Reversing Earnings

You can create an offer adjustment to reverse earnings for an offer when either of the following are end dated or removed from an offer:

You can only reverse earnings for accrual, trade deal, and volume offers. To end date a product or market eligibility within the Offer Adjustments page, enter a date in the End Date field. If the start date matches the end date and the offer contains more than one product or market eligibility, then a Remove field appears. Check the Remove box if you want all earnings for the product or market eligibility reversed. If you only specify an end date, then only the earnings from the day after the end date (end date + 1) and into the future are reversed. You can also use a public API to create an offer adjustment that reverses earnings.

To automatically reverse earnings for an offer, you must set the profile option OZF : Revert Earnings for Offer to Yes. See: Profile Options for the Trade Planning Category.

Reversing Earnings Manually

In the following scenarios, you must manually reverse accruals:

Adjusting Earnings Reversals

Some special cases:

Forecasting

You can use the forecast functionality in Oracle Channel Revenue Management for evaluating and considering the historical data of past offers to create successful new offers. To access this functionality click the Forecast side navigation link from the details page of any offer.

The Offer Forecast can be based on one of the following:

You can create Forecasts for all types of offers and any offer status. The exception to this is for Order Value. Order Value offer does not have any product specification.

To create a forecast you need at least one customer and one product selected in the Offer. Forecasts support multiple customers and products.

You can update a Forecast before it is frozen. After it is frozen, a Forecast and product combination cannot be changed, regardless of changes in the Offer's customer and product selection. A frozen Forecast cannot be deleted. New Forecast versions can be created after a previous one is frozen. Forecasts are created in quantity, not monetary value.

Forecasts are created at Offer or Campaign level. If created at Offer level, it looks up the historical sales data for the customers and products selected for that given Offer. If created at the Campaign level, it sums up for the different campaigns.

For Offer Forecasting, Channel Revenue Management uses an API from Inventory called CST_COST_API.get_item.cost. The list price of the item is fetched using the Advanced Pricing API called QP_preq_grp.price_request. When you input the inventory item ID and org ID, they are passed on to the API, which returns the cost of goods sold.

Implementing Forecasts for Offers

To implement Forecasts for Offers, use the following high level procedure.

  1. Run the Refresh Materialized Views for Order Sales concurrent program.

    Because Forecasts are done based on historical sales data, there must be historical sales data in the system.

  2. Set the OZF: Default Forecast UOM profile option at the user level.

    This profile option determines the default unit of measure (UOM) used for calculating forecasts. If historical sales data are in different UOMs, they will all be converted to the UOM specified here.

  3. Ensure that the Forecast flag is checked as Available Attributes in the corresponding Campaign or Offer Custom Setup.

Setting up Other Costs for ROI Calculator

You can set up Other Costs for an item in addition to the cost of goods retrieved by the API CST_COST_API.get_item_cost.

For each item and event "oracle.apps.ozf.forecast.OtherCosts" is raised. Subscribe to this with a phase between 1 and 99 so that the subscription will be executed synchronously. This subscription should have a function that returns the other costs for the item.

To subscribe to the Event, log into Self Service Applications as System Administrator. Select the Workflow Administrator Web Applications responsibility.

  1. Select Business Events under Administer Workflow.

  2. Enter oracle.apps.ozf.planning.OtherCosts in the Search Criteria.

  3. Click the Subscription icon for the Event.

  4. Click Create Subscription.

  5. Enter all of the required information.

    Make sure that Phase = Between 1 and 99

    These parameters are sent in the Event:

    Name Description
    P_OBJ_TYPE Calling object code. WKST if called from Offer Worksheet Discount Calculator. OFFR if called from Offer - Forecasts
    P_OBJ_ID Calling objects Id. If P_OBJ_TYPE is WKST then OZF_WORKSHEET_HEADERS_B.WORKSHEET_HEADER_ID If P_OBJ_TYPE is OFFR then OZF_OFFERS.QP_LIST_HEADER_ID
    P_PRODUCT_ATTRIBUTE Attribute of the discount line. For product: PRICING_ATTRIBUTE1 For Category: PRICING_ATTRIBUTE2
    P_PRODUCT_ATTR_VALUE Id of the Attribute. For product: Inventory_Item_Id For category: Category_Id
    P_UOM Unit of Measure for Other Costs
    P_OTHER_COSTS The subscription should set value of other costs to this parameter. Application will read this value and add to Cost of Goods. Note: Should always be a NUMBER

    Code Example

    Users can write the generate function in the subscription as follows:

    Generate Function in the Subscription

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Setting Up Budget-Offer Validation

Enable this option to ensure that customer and product targets for promotional offers match those specified in the budget from which it is sourcing money. This option ensures that funds planned for certain customers and products are used appropriately.

For example, a company may create a budget used for California Retailers and Orange Juice only. If the validation is turned on, an offer created for Oregon Retailers and Milk will not be allowed to source from that budget.

To enable this functionality, set the OZF: Validate market and product eligibility between object and budget profile option. Set this option at the site and responsibility levels.

The values for this profile option are:

If validation fails, the revert status process reverts the status of an object (such as an offer) from Submitted or Pending back to the previous status, for example, draft. A notification is sent to the object owner.

Offer Types

Setting Up Volume Offers

In the consumer goods industry, manufacturers frequently enter into trade commitments with customers that span months, quarters, or even an entire calendar or fiscal year. These commitments may also surround special trade events such as new product introductions. Trade commitments are commonly referred to as Performance Programs, Purchase Contracts or National Agreements.

The goal of a volume offer is to provide an enticement to purchase. The incentive covers the cumulative purchases of the specified goods, and accrues as the manufacturers ships their goods to the customer.

Typically the commitment provides multiple performance tiers for the customer. For example, an offer may be executed for one quarter with the following structure:

Oracle Channel Revenue Management accommodates volume offers. The following table lists the columns in the Offer Checkbook that describe the financial and budgeting details of an offer.

Column Description
Utilized Updated after the offer applies on an order, which is determined by QP's Event Phase setups. If offer is set as Retroactive, additional updates to Utilized will be made on previous orders as well.
Earned Updated as determined by profile option OZF: Create GL Entries For Orders
Paid Claim/Deduction is settled

Volume Offer Seeded Values

Calculating Volume Offer

The Volume Offer considers actual shipments within the date range of the offer, not booked orders for the product(s) specified in the Product Profile table. Actual shipment values are derived from Order Management.

Point of Sales Qualifiers for Volume Offers

When you use indirect sales data for volume offers, identifying the seller and buyer are important for market eligibility rules. The following information applies to Indirect Sales for Volume Offers.

Budget Integration for Volume Offers

In Channel Revenue Management you no longer have to enter the market eligibility from the first fully accrued budget creation page. You can enter market eligibility at any time and it will passed to the “market eligibility” page. After you enter market eligibility the “market options” page will display a corresponding line.

Notes:

Setting up Scan Data Offers

Scan data offers are a common promotional tactic executed by companies in most all consumer goods industries. Common examples of scan data promotions are coupons or consumer rebate programs, which may be received by a manufacturer as an import file from a POS system.

The process works as follows:

In some cases, the retailer may submit the scan data directly to the manufacturer. In that situation, the manufacturer validates the data and remits payment to the retailer.

Channel Revenue Management accepts such scan data from a third party source. The collected data can then be researched, verified and resolved so payment can be made to the appropriate retailer and the open liability settled. In some cases, the retailer may submit the scan data directly to the manufacturer. In those cases the manufacturer validates the data and remits payment to the retailer.

Use the following steps to set up a scan data offer.

  1. Set the following profile options in Oracle Forms:

    • OZF: Invoke Workflow for Manual Scan Data Adjustments

    • OZF: Scan Data UOM

      See the Trade Planning profile options, for more information.

  2. Log in to Oracle Channel Revenue Management and navigate to Administration > Trade Management >Setup >Activity.

  3. Create an activity by associating the appropriate marketing media using the table.

    The values displayed for Marketing Media are predicated on the Activity selected. You can create and customize additional Activity /Trade Medium relationships as needs arise or you can define the values during setup.

  4. Log in to Oracle Forms and select the General Ledger Super User responsibility.

  5. Navigate to GL Posting for Accrual.

    At the same time a Scan Data offer updates the budget utilized column, if Oracle General Ledger postings created by Channel Revenue Management are used based on a profile, Channel Revenue Management writes a debit and a credit accounting entry into its interface to be transferred to Oracle General Ledger.

    Per line in the offer, in this case per scan data profile line, the following entries are created:

    • Sales Expense

    • Liability

  6. Customize GL accounts.

    The Oracle General Ledger accounts are taken first from the Budget, then Budget Category, then System Parameters. You can also define Account Derivation Rules to derive the Oracle General Ledger accounts for each offer line. For information on setting up account derivation rules, see the Oracle Subledger Accounting Implementation Guide.

    Note: An option is provided that allows the reversal of product family accruals for Lump sum and Scan Data offers. It is selected when creating custom setups for Scan Data offers. For more information, see. the Creating Custom Setups section in the Oracle Channel Revenue Management Implementation and Administration Guide.

Setting Up Lump Sum Offers

In addition to offers made to customers tied to specific product transactions (for example, $1.00 off per case), a supplier may pay customers for other services and expenses. These include payments to secure shelf space (slotting allowances), events (new store opening activities), and payments to reimburse customers for advertising costs, for example. For these situations, the vendor uses a Lump sum offer to issue a check or credit to the customer for a specific amount.

To set up Lump sum offers, log into Oracle Channel Revenue Management.

Navigation: Trade Planning > Offers.

Notes:

Guidelines

During the time when the lumpsum is active, the funds are utilized at a rate in proportion to the total days of the offer. For example, a lumpsum of $12,000 for a three month quarter is utilized as $4,000 per month.

Setting Up Net Accrual Offers

The Net Accrual offer type bypasses Advanced Pricing and directly processes order transaction data. Accruals are applied based on the net sales of a specific customer and product, rather than on invoiced sales. Net accrual offers can be used to establish price protection programs. They create utilization on sales that occurred in the past.

To implement net accrual offer types, run the following concurrent programs in this order:

Setting Up Net Accrual Rules

Net accrual rules are used to determine the net sales of product on which an accrual discount can be applied. These rules contain all the deductions that need to be considered on total sales of any product to arrive at the Net Sales.

For example, a Sales Representative sets up a deal with a customer that gives the customer a promotion of 5% based on sales to them in the previous quarter. As a part of the terms of this promotion, the Sales Representative wants to exclude the credit memos given to the customer in the previous quarter so as to arrive at a net sales figure. He can achieve that by creating net accrual rules and group them as a net accrual rule set. This rule set can be specified on an Offer of type Net Accrual.

Log in to Oracle Channel Revenue Management.

Navigation: Administration > Trade Management > Trade Planning > Net Accrual Rules.

Notes:

Creating and Verifying Net Accrual Rule Sets

Net accrual rule sets are a grouping of Net Accrual rules. A rule set must be specified while creating a Net Accrual offer. The rules in the rule set will be used in arriving at the Net Sales of a product on which and accrual discount can be applied.

Creating Net Accrual Rule Sets

As a prerequisite, Net Accrual Rules must be created.

Log in to Oracle Channel Revenue Management.

Navigation: Administration > Trade Management > Trade Planning > Net Accrual Rules.

Notes:

Verifying Net Accrual Rule Sets

As a prerequisite, Net Accrual Rule sets must have been set up.

Log in to Oracle Channel Revenue Management.

Navigation: Trade Planning > Offers > Create.

Notes:

Using Subledger Accounting for Defining Account Derivation Rules for Offers

If your business requirements call for the need to post promotional accruals (for accrual, lump sum offers) to Oracle General Ledger you can customize the derivation of this account in Oracle Subledger Accounting (SLA).

Customization defines the value of a certain segment of the whole account.

For example:

You can use the following attributes for customization:

For an accrual account the Account Deriving Rule in SLA obtains accounts in the following order of precedence:

For a claim settlement account the Account Deriving Rule in SLA obtains accounts in the following order of precedence:

Important: You must retain the predefined Account Derivation Rule (ADR) for Claim Clearing Account since the account information is used while interfacing claims to Oracle Receivables or Oracle Payables.

For more information on using the Account Derivation Rules, see the Oracle Subledger Accounting Implementation Guide.