Working with Claimbacks

This chapter provides an overview of claimback functionality in PeopleSoft Order Management, lists prerequisites, and discusses how to:

Click to jump to parent topicUnderstanding PeopleSoft Claimbacks

The claimback functionality of PeopleSoft Order Management facilitates collaboration among manufacturers, distributors, and customers.

A claimback refers to money paid to a distributor by a manufacturer (supplier) for the sale of specific products or product groups to specific customers.

In the wholesale distribution environment, the distributor has unique relationships with suppliers and contractors. In our example, the distributor is PeopleSoft system users. They buy from manufacturers and sell to many different entities; most often to contractors. A claimback is an agreement between the distributor and the manufacturer based on sales (orders that are entered and shipped) to a contractor (or customer of the distributor).

This diagram shows the relationship of manufacturers and distributors with their customers within the wholesale distribution environment:

Wholesale distribution environment showing the relationship of manufacturers and distributors with their customers

The distributor (the PeopleSoft system user) might have a contract to buy doors from a specific manufacturer (supplier) for 100 USD per door. The manufacturer might also have an agreement to sell the same door to a specific contractor for 90 USD, but the contractor must go through the distributor to get this price. The distributor needs to pay the manufacturer 100 USD per door and needs to sell it to the contractor for 90 USD. The difference of 10 USD is a claimback that must be managed using the claimback functionality of PeopleSoft Order Management. The difference of 10 USD will apply to each door shipped to the specified contractor, and it will be a reimbursement paid to the distributor by the manufacturer. The claimback ensures that the distributor can maintain its target sales margin for the door.

Note. In this example, we assumed a 0 percent sales margin. The claimback amount would be greater if the distributor maintained a larger sales margin.

Claimback Process Overview

The following diagram shows the high-level process flow for creating a claimback contract and processing the claimback claim within PeopleSoft Order Management:

Overview of claimback process flow

The following steps are an example of a typical business process for claimbacks:

  1. Enable claimback functionality for PeopleSoft Order Management.

  2. Create a claimback contract for a specific product and customer.

    Note. You can also create claimback contracts for product groups and customer groups.

    The Claimback manager can review the Claimback History page at any time to review the complete audit trail of the changes made to a given claimback contract. The Claimback manager can also review the Claimback Activity page, which displays order, shipment, and claim information related to the claimback contract.

  3. During order entry, the Customer Service Representative (CSR) enters an order line that matches a claimback contract. In our example, the claimback contract for product 123 is applied when the CSR clicks the Calculate Price button on the order entry form.

  4. The system generates claims for orders that are applied to the claimback contract and shipped.

  5. Using the Claims Management Workbench, process and adjust claims.

    You can defer claims to the next period, and you can settle claims by cash, credit notes, check, electronic funds transfer (EFT), draft, direct debit, or adjustment voucher.

  6. The system generates accrued revenue transactions, as requested, for unsettled claims. Users with appropriate security can then:

Note. The processing of claimback claims uses the same functionality as the vendor rebate process, which is covered in detail in the PeopleSoft Purchasing book.

See Managing Vendor Rebate Claims.

Click to jump to parent topicPrerequisites

Before you process claimbacks in PeopleSoft Order Management, you must:

  1. Enable claimback processing in Order Management. You do this on the Order Management Installation Options page.

  2. Set up default information for claimbacks on the Order Management Business Unit Definition, Claimback Settings page.

  3. Determine claimback default values, processing options, and user security using the Claimback SetID Options page.

  4. Set up Order Management business unit groups to assist you in creating claimback contracts.

  5. Create special customer groups for claimback contracts.

  6. Create special product groups for claimback contracts.

  7. Set up feature security for maintaining the claimback Status, Recalculate Claims, and Next Claims Generation Date fields on the claimback contract.

See Also

Setting Up PeopleSoft Order Management Claimbacks

Establishing Customer Group Tables

Click to jump to parent topicSetting Up PeopleSoft Order Management Claimbacks

To set up claimbacks, use the Claimback SetID Options and OMBU Groups for Claimbacks components.

This section discusses how to:

See Establishing Feature Function Security.

Click to jump to top of pageClick to jump to parent topicPages Used to Set Up PeopleSoft Order Management Claimback Options

Page Name

Definition Name

Navigation

Usage

Order Management Installation Options

INSTALLATION_OM

Setup Financials/Supply Chain, Install, Installation Options, Order Management

Select the Process Claimback option to enable claimback processing in Order Management.

Options & Defaults

CB_SETUP_OPT

Setup Financials/Supply Chain, Product Related, Order Management Foundation, Claimback SetID Options, Options & Defaults

Set up default values and contacts, claimback contract and claim prefixes, and claimback claim over and under tolerances for claimback contracts.

Unrestricted Managers

CB_UNRESTRICTED

Setup Financials/Supply Chain, Product Related, Order Management Foundation, Claimback SetID Options, Unrestricted Managers

Identify specific roles or users with unrestricted access to claimback contracts for the selected claimback SetID.

OM Business Unit Groups

CB_OMBU_GRP

Setup Financials/Supply Chain, Product Related, Order Management Foundation, Claimback OMBU Groups, OM Business Unit Groups

Define which Order Management Business Units belong to each user-defined group. These groups will provide the list of Order Management Business Units by default to the claimback contract line.

Click to jump to top of pageClick to jump to parent topicConfiguring Claimback Setup Options and Defaults

Access the Options & Defaults page (Setup Financials/Supply Chain, Product Related, Order Management Foundation, Claimback SetID Options, Options & Defaults).

Enter header-level default values for the claimback contract on this page.

Claimback SetID Information

Automatically Apply

The system applies a claimback only when the CSR clicks the Calculate Price button on the order entry form. Select a claimback contract processing option from these available options:

First To Expire: If more than one contract qualifies for an order line or schedule and the flag is set to First to Expire, then the system applies the claimback contract with the earliest end date.

Largest Claimback Amount: If more than one contract qualifies for an order line or schedule and the flag is set to Largest Claimback Amount, then the system applies the claimback contract with the largest calculated claimback amount.

None: If the flag is set to None, then the system will not apply a claimback contract to an order line or schedule.

Schedule ID

Enter a schedule ID, as set up in the schedules component, to indicate how often claims should be generated for this claimback SetID.

Stop Apply At Max Quantity (stop apply at maximum quantity)

Indicates whether or not the contract should still be applied to a sales order line or schedule when the maximum quantity on the claimback contract has been reached.

If this option is not selected, the system sends a warning message indicating that the maximum quantity on the claimback contract was reached.

If the option is selected, the system sends an error message and does not apply the claimback contract to the sales order line or schedule because the maximum quantity on the claimback contract was reached.

Base Currency

Select a base currency to be used when creating claimback contracts for this SetID.

Rate Type

Identifies the conversion rate to be used if currency conversion is required.

Claimback Contacts

Notify Claimback Manager

Specify if the Claimback manager should be notified when a claim is submitted for processing in the Claims Management Workbench for the claimback contract. If enabled, enter the Claimback manager ID in the field provided.

Claimback Manager ID

Specifies who has access to create and maintain claimback contracts for this SetID. This field is required, and it is provided by default to all claimback contracts created for this SetID.

Notify Settlement Manager

Specify if the Settlement manager should be notified when a settlement method is determined for a claim during the settlement process. If enabled, enter the Claimback Settlement manager ID in the field provided.

Claimback Settlement Mgr ID (claimback settlement manager ID)

Specifies who owns the settlement process for any claims created against a claimback contract. This person is responsible for processing the claim through Accounts Receivable or Accounts Payable, depending on the settlement method. This field is required, and it is provided by default to all claimback contracts created for this SetID.

Prefixes

Claimback Contract Prefix

Specify one of the auto-numbering prefixes set up for the Claimback Contract ID number type.

Claim Prefix

Specify one of the auto-numbering prefixes set up for the Claim ID number type.

Tolerances

Tolerances, both over and under based on either a flat amount or a percentage, are defined in the Claimback Contract Header and passed to the Claims Management Workbench to be used during the settlement process.

Note. The Accounts Receivable Payment Predictor functionality allows the user to set up matching tolerances that will automatically write off any remaining claim balance. The claim tolerances defined in the Claimback Contract Header are handled differently through the Claim Settlement process, which creates an adjustment to an open item to handle the amount of the remaining claim to be written off. To avoid creating duplicate write-offs for an open item, which could create a credit balance for the customer (vendor), you should not use a Payment Predictor method that uses a tolerance.

Over Tolerance Percent

If the amount above the claim amount that is received from a vendor is greater than or equal to this percentage of the claim amount, then the claim will be closed automatically.

Over Tolerance Amount

If the amount above the claim amount that is received from a vendor is greater than or equal to this amount, then the claim will be closed automatically.

Under Tolerance Percent

If the amount below the claim amount that is received from a vendor is less than or equal to this percentage of the claim amount, then the claim will be closed automatically.

Under Tolerance Amount

If the amount below the claim amount that is received from a vendor is less than or equal to this amount, then the claim will be closed automatically.

Click to jump to top of pageClick to jump to parent topicConfiguring Claimback User Security

Access the Unrestricted Managers page (Setup Financials/Supply Chain, Product Related, Order Management Foundation, Claimback SetID Options, Unrestricted Managers).

To allow a user to access the Claimback Contract, you must define the user as an Unrestricted Manager or as the Claimback Manager on the Options & Defaults page. To allow a user to view and maintain Claimback Claims for the contract, you must define the user as an Unrestricted Manager, as the Claimback Manager on the Options & Defaults page, or as the Settlement Manager on the Claimback Contract.

Security Type

Define multiple users and roles as unrestricted for a given claimback SetID. These users can maintain all of the fields on the claimback contract except the Status, Recalculate Claims, and Next Claims Generation Date fields. Select a security type of Role or User ID.

User ID/Role

Specify the actual user ID or role code. This user or role has full access to maintain all of the claimback contract fields except the Status, Recalculate Claims, and Next Claims Generation Date fields.

Note. Access for maintaining the claimback contract Status, Recalculate Claims, and Next Claims Generation Date fields is controlled by standard feature security functionality. You can set up this security for a role, a user, an Order Management Business Unit, or the installation.

Click to jump to top of pageClick to jump to parent topicDefining Order Management Business Unit Groups for Claimbacks

Access the Order Management Business Unit Group page (Setup Financials/Supply Chain, Product Related, Order Management Foundation, Claimback OMBU Groups, OM Business Unit Group).

Group Name

Enter the name of the Order Management Business Unit group being created.

Description

Enter a description of the Order Management Business Unit group being created.

OM Business Unit

Select one or more business units to associate with the Order Management Business Unit group being created.

Click to jump to parent topicCreating Claimback Contracts

This section discusses how to:

Click to jump to top of pageClick to jump to parent topicPages Used to Create Claimback Contracts

Page Name

Definition Name

Navigation

Usage

Claimback Header

CB_HDR

Order Management, Claimbacks, Claimback Contract, Claimback Header

Enter claimback contract header and settlement information.

VAT

CB_VAT

Order Management, Claimbacks, Claimback Contract, Claimback Header, VAT - Review link

Enter or modify VAT information for the claimback contract.

Claimback Activity

CB_ACTIVITY

Order Management, Claimbacks, Claimback Contract, Claimback Activity

Review claimback contract order, shipment, and claim activity.

Claimback History

CB_HISTORY

Order Management, Claimbacks, Claimback Contract, Claimback History

Review an audit trail of all changes to the claimback contract.

Default Claimback ID

RUN_CB_DEFAULT

Order Management, Claimbacks, Default Claimback ID

Provide the default Claimback ID to sales order lines and schedules processed in batch.

Note. When processing new orders (OM_EC) or orders to be completed (OM_BACKGRND), updating orders (OM_ORDCHG), or copying orders (OM_ORDCOPY), run the Default Claimback ID process (OM_CLAIMBK) if claimback defaults are needed. You can set up a job to link the Default Claimback ID process to other processes, such as those listed previously.

See PeopleTools PeopleBook: PeopleSoft Process Scheduler.

Click to jump to top of pageClick to jump to parent topicCreating Claimback Contracts Header and Line Information

Access the Claimback Header page (Order Management, Claimbacks, Claimback Contract, Claimback Header).

Recalculate Claims

Select this check box if changes to any of the fields on the claimback contract will affect the actual claim or claim amount; for example, purchase price, claimback amount, percentage, and price date fields. You can select this option if you have access through the Feature Security to edit the Recalculate Claims field.

See Establishing Feature Function Security.

When you select this option, the Generate Claims batch process will update the claim amounts for any existing claims that have not yet reached the settlement process for the claimback contract. Then, it will set the value of this field back to N (deselected).

Next Claims Generation Date

The system calculates this value when a new claimback contract is added. The date is based on the start date and the schedule ID defined for the claimback contract. You can override the calculated date if you have access through the Feature Security to edit the Next Claims Generation Date field. Claims are generated for the claimback contract only if the Next Claims Generation Date value is less than or equal to the current date.

Customer ID

Enter a value for the sold-to customer shown on the sales order. this field is required, and it is based on the Customer Type value.

Customer Group

Enter a specific customer group with a Group Type equal to CLMB (claimback). This required field is based on the Customer Type value.

Product ID

Enter a value based on the Product Type. This field is required.

Product Group

Enter a specific product group with a Group Type equal to CLMB (claimback). This required field is based on the Product Type value.

Unit of Measure

Select a value. This field is required if the Product Type is equal to Product ID or if a maximum quantity is entered on the claimback contract. The default is the product sales unit of measure (UOM). If the Product Type is equal to Product Group, then the UOM is always the sales UOM entered on the sales order.

The UOM value entered on the claimback contract determines the UOM for which the claimback amount or percentage is entered, as well as the UOM for the maximum quantity field. When applying the claimback contract to the sales order line or schedule, you must apply a UOM conversion if the order UOM is different than the claimback contract UOM. This conversion application is necessary for maximum quantity calculations as well as for margin calculations.

Stop Apply at Max Quantity (stop applying at maximum quantity)

Indicates whether or not the contract should still be applied to a sales order line or schedule when the maximum quantity on the claimback contract is reached. If the option is not selected, then a warning message is displayed during order entry. If the option is selected, an error message is displayed during order entry and the contract is not applied to the sales order because the maximum quantity has been reached.

Maximum Quantity

Optional. Limits the quantity that can be ordered against the claimback contract.

If a value is entered in the Maximum Quantity field on the claimback contract, then the order quantity will be validated before a claimback contract can be applied to a sales order line or schedule to ensure that the maximum quantity has not already been reached.

Include Shipments

If the sales order line or schedule is marked as Direct Ship to Vendor, the system will apply only claimback contracts with the Include Shipments option set to Both or Direct to the sales order line or schedule.

If the sales order line or schedule is not marked as Direct Ship to Vendor, then the system will apply only claimback contracts with the Include Shipments option set to Both or Standard to the sales order line or schedule.

Claimback Amount

Displays a per unit value for the claim amount calculated for the claimback contract.

Claimback Percentage

Displays a percentage of the product purchase cost that applies to the claim amount calculated for the claimback contract.

Note. If a claimback amount and a claimback percentage are both provided for a specific claimback contract, the claimback percentage will be applied to the claim amount first, and then the claimback amount will be applied.

Claimback Margin Impact

Displays if the claimback contract will affect the margin calculation, which is based on either the unit cost or the alternate unit cost defined on the sales order.

Settlement Method

Displays the method used to reimburse the claimback amount or percentage specified in the contract.

If the settlement method is other than Voucher, where vendor payment is processed through accounts receivable instead of accounts payable, then a vendor and bill-to customer relationship must exist. If the vendor and bill-to customer relationship does not exist, then a warning message will be sent informing you that additional setup is required. Additionally, if the settlement method is Draft or Direct Debit, then a warning message will appear if the settlement method for the customer (which is associated with the vendor) is different.

Note. The vendor and bill-to customer relationship can be automatically created from the Vendor, Identifying Information page if you select the Create Bill To Customer option. Selecting this option creates a bill-to customer with the same ID used to create the vendor ID and associates it to the vendor. Using the same page, you can also enter an existing bill-to customer in the Customer ID field in the Additional ID Numbers section.

AP Payment Terms (accounts payable payment terms)

Calculates payment due days for claims that are processed through accounts payable. This field is required.

AR Payment Terms (accounts receivable payment terms)

Calculates payment due days for claims that are processed through accounts receivable. This field is required.

Group Name

Enter the Order Management Business Unit Group ID for this claimback contract. When the Order Management Business Unit Group ID is entered on the Claimback Header page and you click the Load BU Settlement Options button, the system populates the claimback contract line table with one record for each Order Management Business Unit assigned to the Order Management Business Unit Group ID. The system also populates all default values for each business unit, as long as they are already established for the Order Management Business Unit.

Contract Line Entry

In the Settlement Options group box, specify the claimback line information.

Note. The Settlement Options group box contains several fields. The Accounts Payable Business Unit, Accounts Receivable Business Unit, and General Ledger Business Unit fields are provided by default from the Order Management Business Unit. They are not stored in the claimback line table.

AR Distribution Code(accounts receivable distribution code)

Appears by default from the Accounts Receivable Business Unit associated with the Order Management Business Unit. This field is required if the Settlement Method is not Voucher, and it will be used to populate the ChartFields for the debit entry when processing claims through accounts receivable.

If the distribution code is not defined for the Accounts Receivable Business Unit, then an error message will appear when the claimback contract is saved if you do not manually enter an AR distribution code.

Accrued Revenue Distribution Code

Appears by default from the Order Management Business Unit claimback settings.

If a distribution code is not found through the normal distribution rule processing, then the default Accrued Revenue Distribution Code stored at the Order Management Business Unit level is selected.

If more than one accrued revenue distribution code is found through the distribution rule processing, then the system will take the first rule found and populate the claimback contract line record with that value.

The accrued revenue distribution code is used to populate the ChartFields for the debit entries for accrued revenue transactions.

Claimback Distribution Code

Appears by default from the Order Management Business Unit claimback settings.

If a distribution code is not found through the normal distribution rule processing, then the default claimback distribution code stored at the Order Management Business Unit level is selected.

If more than one claimback distribution code is found through the distribution rule processing, then the system will take the first rule found and populate the claimback contract line record with that value.

The claimback distribution code is used to populate the ChartFields for the credit entries for accrued revenue transactions and for claims that are processed through accounts receivable and accounts payable. The sum of all percentages entered for the claimback distribution codes must be 100.

Percentage

Calculates the sum of all percentages entered for the distribution codes. It must be 100.

Click to jump to top of pageClick to jump to parent topicEntering Claimback VAT Information

Access the VAT page (Order Management, Claimbacks, Claimback Contract, Claimback Header, VAT - Review link).

The VAT - Review link appears on the Claimback Header page only when VAT is applicable to the claimback contract. VAT is considered to be applicable if the General Ledger Business Unit associated with the first Order Management Business Unit entered on the claimback contract is tied to a VAT entity. The VAT entity's registration ID and country for the Accounts Payable Business Unit location code are retrieved by the system. In addition, the vendor's VAT registration, country, and location are provided by default to the VAT page, but the user can override any of the default VAT information as necessary.

Note. Because VAT applicability is determined by the first Order Management Business Unit defined for the claimback contract, all business units you define for the contract should have the same VAT applicability. Likewise, all products defined for a product group associated with the contract should have the same VAT treatment because only one set of VAT defaults will be defined for the claimback contract.

See Also

Order Processing in a VAT Environment

Click to jump to top of pageClick to jump to parent topicReviewing Claimback Activity

Access the Claimback Activity page (Order Management, Claimbacks, Claimback Contract, Claimback Activity).

The Claimback Activity page displays order, shipment, and claim information related to the claimback contract. It also provides links to the appropriate pages (order entry, stock request inquiry, and claim details) based on the information displayed for each line. This page displays the total quantity ordered against the claimback contract, the total claim amount generated for the claimback contract, and the number of claims submitted to the vendor for the claimback contract.

Click to jump to top of pageClick to jump to parent topicReviewing Claimback History

Access the Claimback History page (Order Management, Claimbacks, Claimback Contract, Claimback History).

The Claimback History page provides a complete audit trail of the actions taken against a claimback contract, including the operator ID responsible for creating or modifying the contract, the date and time the contract was created or modified, and the audit action (add or change) taken against the claimback contract.

Click to jump to parent topicAnalyzing the Effects of Claimbacks on Profitability

This section lists the page used to analyze the effects of a claimback contract on product profitability.

Click to jump to top of pageClick to jump to parent topicPage Used to Analyze the Effects of Claimbacks on Profitability

Page Name

Definition Name

Navigation

Usage

Product Profitability Report

CB_RUN_CBS1000

Order Management, Claimbacks, Product Profitability Report

Generate the data used to analyze product profitability by running the Generate Profitability Report process (CB_GENPROFIT).

Review the effect of a claimback contract on product profitability, margins, and revenue. Select the Print Profitability Report process, CBS1000, to see the data that was generated by the Generate Profitability Report process.

Click to jump to parent topicProcessing Claims for Claimback Contracts

This section provides overviews of applying claimback contracts to sales orders and calculating the claim amount for the claimback contract, and discusses how to:

Note. The claimbacks feature uses the same functionality to process claims as the vendor rebates feature.

See Also

Maintaining Claims

Click to jump to top of pageClick to jump to parent topicApplying Claimback Contracts to Sales Orders

You validate claimback contracts and apply them to sales order lines or schedules in one of two ways:

Automatic Application of Claimback Contract

To automatically apply claimback contracts during the order entry process, the CSR clicks the Calculate Price button.

When the Process Claimbacks option is set to Y on the Order Management Installation Options page, the claimback fields will be available for entry on the sales order line and schedule, and the system will attempt to retrieve a claimback contract ID both online and in batch mode. During online order entry, the claimback will not be applied until the Calculate Price button is clicked.

Note. For the claimback to be provided by default to the order, the sales order must have a scheduled ship date that falls between the contract start and end dates.

If the Automatically Apply field on the Claimback SetID Options page is not set to None, then the system will automatically populate the Claimback Contract ID field on the sales order line and the sales order schedule with the matching claimback contract ID when the Calculate Price button is clicked.

Manual Application of Claimback Contract

You can override the application of a Claimback Contract ID on the sales order line or schedule. This capability is particularly important when:

Note. You can modify the Claimback Contract ID field on the Sales Order Schedule even if the schedule has been partially shipped. If the schedule is shipped completely or a claim for the claimback contract has reached the settlement process, then you cannot modify the Claimback Contract ID field.

Common Scenarios for Applying Claimbacks

This table describes the fields and sales order entry scenarios that affect the claimback contract matching process:

Scenario

Effect on Matching

Product ID or Product Group field is changed after a Claimback Contract ID is identified for the sales order line or schedule.

Claimback Contract ID field for the line or schedule is cleared, and the automatic claimback contract matching process begins again.

Customer ID or Customer Group field is changed after a Claimback Contract ID is identified for the sales order line or schedule.

Claimback Contract ID field for the line or schedule is cleared, and the automatic claimback contract matching process begins again.

Order quantity on the line or schedule is changed.

Claimback Contract ID field for the line or schedule is cleared, and the automatic claimback contract matching process, including validation against the maximum quantity if defined for a matching contract, begins again.

Claimback contract specifies a maximum quantity.

If a maximum quantity is defined for the claimback contract, then the order quantity is validated to ensure that it can still be applied to the contract.

If the Stop Applying at Maximum Quantity field is not selected on the claimback contract, then a warning message appears in the message grid, indicating that applying this quantity to the claimback contract will result in an excess quantity beyond that specified in the claimback contract.

If the Stop Applying at Maximum Quantity field is selected on the claimback contract and the order quantity exceeds the claimback contract maximum quantity, then the claimback contract ID is not applied to the line or schedule and an error message appears in the message grid.

Claimback specifies a maximum quantity and the order quantity changes, causing it to exceed the maximum quantity specified for the claimback contract.

An error message appears, indicating that applying this quantity to the claimback contract will result in an excess quantity beyond that specified in the claimback contract. As a result, the claimback contract ID will not be applied to the line or schedule.

Multiple valid claimback contracts are located during the matching process.

The system attempts to apply contracts based on the Automatically Apply SetID option.

If the option is set to First to Expire, then the contract with the earliest end date is applied.

If the option is set to Largest Claimback Amount, then all valid claimback contracts are evaluated on the calculated claimback amount, and the contract generating the largest claim amount is applied to the sales order line or schedule. The Largest Claimback Amount is calculated using this formula: claimback amount + (unit cost * claimback percent).

Sales order line or schedule is marked as Direct Ship to Vendor.

If the sales order line or schedule is marked as Direct Ship to Vendor, the system only applies claimback contracts with the Include Shipments option set to Both or Direct to the sales order line or schedule.

Sales order line or schedule is not marked as Direct Ship to Vendor.

If the sales order line or schedule is not marked as Direct Ship to Vendor, the system only applies claimback contracts with the Include Shipments option set to Both or Standard to the sales order line or schedule.

Buying agreement specified in the claimback contract does not match the buying agreement specified in the sales order.

A warning message appears, indicating that the buying agreement on the claimback contract and the sales order line do not match.

Click to jump to top of pageClick to jump to parent topicCalculating the Claim Amount for a Claimback Contract

The claim amount for a given claimback contract is calculated using the formula:

( (Starting Purchase Cost × Claimback Percentage) + Claimback Amount) + (Current Purchase Cost − Starting Purchase Cost))

Several factors affect the value of the starting cost:

Note. The purchase cost is determined by the vendor list price minus any discounts. The vendor list price is retrieved from either a procurement contract (if defined on the claimback contract) or from the price defined on the Vendor's Unit of Measure & Pricing Info page. The discounts are retrieved from either a procurement contract (if defined on the claimback contract) or from vendor price adjustments that are defined in the system. The logic to determine the starting or current purchase cost for the claimback calculation is similar to the logic used in Purchasing to determine the purchase order price.

See PeopleSoft Source-to-Settle Common Information 9.1 PeopleBook.

Example of Cost Fixed from Contract Date (Amount)

When the Cost Fixed From Contract Date option is selected for a claimback contract, the cost is derived from the product cost for the date specified on the contract and is compared to the product cost at the time the claim is generated. The claimback amount can be determined once both product costs are derived.

When calculating the per unit and total claimback amount:

Example of Cost Defined on Contract (Percent)

When the Cost Defined on Contract option is selected for a claimback contract, the claimback amount, per unit and total, is determined using the cost stored in the claimback contract.

When calculating the per unit and total claimback amount:

Note. The Purchase Cost defined in the claimback contract determines the Starting Purchase Cost in this calculation, and the Current Purchase Cost is calculated based on the claim generation date.

Example of Neither Cost Fixed from Contract Date or Cost Defined on Contract (Amount and Percent)

When neither the Cost Defined on Contract option nor the Cost Fixed from Contract Date option is selected for a claimback contract, the system uses the Current Purchase Cost, as of the claim generation date, to determine the product cost and to derive the claimback amount per unit and total.

When calculating the per unit and total claimback amount:

Click to jump to top of pageClick to jump to parent topicPages Used to Perform Claimback Claim Maintenance

Page Name

Definition Name

Navigation

Usage

Generate Claim Request

CB_CLAIM_RQST

Order Management, Claimbacks, Generate Claims/Accrue Revenue, Generate Claim Request

Create claimback claims to submit to the vendor and generate accrued revenue transactions for the claimback contract.

Notify Claimback Manager

VRBT_NTFY_RM_RC

Order Management, Claimbacks, Claimback Claims, Notify Claimback Manager

Run a batch process that notifies the Claimback Manager when claims are generated by the Claimback Claims and Accruals process.

Claimback Claims Print

VRBT_CLAIMS_PRT_RC

Order Management, Claimbacks, Claimback Claims, Claimback Claims Print

Run a batch process that prints claimback claims by SetID, Claimback Contract ID, or Claim ID. This process prints the formal claims to send to the vendor for payment.

Notify Settlement Manager

VRBT_NTFY_SM_RC

Order Management, Claimbacks, Claimback Claims, Notify Settlement Manager

Run a batch process that notifies the Settlement Manager when the claim settlement process is initiated for all claims, a specific claimback contract, or a specific claimback claim for the selected setID.

Incoming Payment Reconcile

VRBT_CLAIMS_WB

Order Management, Claimbacks, Claimback Claims, Incoming Payment Reconcile

Run a batch process that reconciles incoming claimback payments for all claimback claims or all claimback claims for a specific claimback contract for the selected setID. You can enter an accounting date (blank by default) on this page.

Claims Management Workbench

VRBT_CLAIMS_WB

Order Management, Claimbacks, Claimback Claims, Claims Management Workbench

Manually submit a specific claimback claim for processing. Once a claim is generated, the Claims Management Workbench pushes the transaction to Accounts Payable or Accounts Receivable for settlement. Additionally, the Claimback Manager uses this page to defer a claim ID to the next payment cycle, create a deduction for an overdue payment from the vendor, reverse a deduction, reconcile payment for a claim, or print a claimback claim.

Claim Details

VRBT_CLAIM_DETAIL

Order Management, Claimbacks, Claimback Claims, Claim Details

View the details of a specific claimback claim, including details of the shipments that comprise the claim amount for the claimback contract.

Claim Reconciliation

VRBT_CLAIM_RECON

Order Management, Claimbacks, Claimback Claims, Claim Reconciliation

View reconciliation details and maintain the reconciliation status for claimback claims.

Claim Settlement Inquiry

VRBT_CLAIM_SETTLE

Order Management, Claimbacks, Claimback Claims, Claim Settlement Inquiry

View settlement information about specific claimback claims.

Claim Incoming Payment

VRBT_CLAIM_INPAY

Order Management, Claimbacks, Claimback Claims, Claim Incoming Payment

Manually enter incoming payment information for claimback claims.

Click to jump to top of pageClick to jump to parent topicGenerating Claims

Access the Generate Claim Request page (Order Management, Claimbacks, Generate Claims/Accrue Revenue, Generate Claim Request).

The Generate Claims page allows you to submit the Claimback Claims and Accruals batch process. This process automatically creates claims for shipments that have been made against a claimback contract and creates new claims for claims that were deferred to another period.

Run Process By

Select the claim processing option to use as the basis for generating claims. The options are:

Claimback SetID: Generate claims for all the claimback contracts that belong to the specified claimback contract SetID.

Single Claimback Contract: Generate claims for the specified claimback contract.

Vendor ID: Generate claims for the specified vendor ID.

Create Claimback Claims

Select this option to create claimback claims for the specified Claimback SetID, Claimback Contract, or Vendor ID. This process automatically recalculates claims for claimback contracts with the Recalculate Claims flag set to Y if the Create Claimback Claims option is selected.

Accrue Claimback Revenue

Select this option to automatically accrue incurred revenue for claimbacks that have not gone through the settlement process.

See Reviewing Claimback Accruals.

Click to jump to top of pageClick to jump to parent topicUsing the Claims Management Workbench

The Claimback Manager can update the status of claims that have been created for claimback contracts using the Claims Management Workbench. The claimback status determines what actions the Claimback Manager can perform.

Claim ID

Click this link to view the claimback activity for the claimback contract.

Claim Status

Select the appropriate search criteria for the claimback status.

For example, if you want to view approved claimback claims, select Approved from the Claim Status option.

Apply Claim Action

Approve: Change claims with an open status to an approved status.

Cancel: Change claims with an open, approved, or deferred status to a canceled status.

Defer: Change claims with an open or approved status to a deferred status.

Unapprove: Change claims with an approved status to an open status.

Apply Process Action

Cancel Deduction: Submit the claim to the deduction process in order to reverse the adjustment voucher previously sent to Payables for an overdue action and to send back the Pending Accounts Receivable item to Receivables so that they will again expect the payment from the vendor. This option is only valid for claims with a status of pending payment or partial payment where the overdue status is Y, and the overdue deduction is set to an adjustment voucher.

Claim Settlement: Submit the claim to the settlement process and send an expected payment from the vendor to Payables in the form of an adjustment voucher if the settlement method is adjustment voucher, or to Receivables if the settlement method is other check, draft, EFT, and so on. This selection also changes the claim status to Pending Payment and notifies the Claimback Settlement Manager if configured to do so.

Overdue: Submits the claim to the deduction process in order to reverse the pending Accounts Receivable item sent to receivables and then to send an adjustment voucher to Payables. This option is available only for claims with a status of pending payment, partial payment, and a settlement method other than adjustment voucher, with the overdue flag set to N.

Note. For claims with a status of partial payment, overdue action is only allowed if no related Active Claim Settlement has a Collected Amount greater than zero.

Payment Reconciliation: Submit the claim to the incoming payment reconciliation process, which reconciles the claim with the incoming payment from receivables. This action can only be applied to claims with a status of pending payment or partial payment.

Print for Dispatch: Print the formal claim document to send to the vendor. This action can only be performed on claims with a status of pending payment or approval.

Submit for Processing

Click to load all of the claimback claims applicable to the specified claimback ID.

Click to jump to parent topicReviewing Claimback Accruals

This section provides an overview of revenue accrual for general ledger and lists the pages used to review claimback accruals.

Click to jump to top of pageClick to jump to parent topicAccruing Revenue for General Ledger

The Generate Claim Request page provides a batch process and request capability for automatically accruing incurred revenue for claimbacks that have not gone through the settlement process. In this case, shipments were made against the claimback contract, and claims may have been generated, but the claims were not yet passed to Accounts Payable or Accounts Receivable for processing. The Accrued Revenue transactions will be sent to General Ledger so that new journal entries can be created by the Journal Generator.

You can submit the Claimback Claims and Accruals process for:

The process is run based on the status of the claimback contract. Claimback contracts with a status of Approved or Closed will compute accrued revenue amounts for all shipments for which the order schedule is tied to the claimback contract and a claim has:

The Claimback Claims and Accruals process looks at any shipments that have a claimback contract applied to them and determines if an accrual transaction needs to be generated. If no claim has yet been generated, an existing claim has not yet been settled, or a claim has been deferred to another period, then the claimback amount will be accrued and passed to the General Ledger.

Note. The Claimback Claims and Accruals process will process any claims with a status of Open or Approved, but it ignores any claims with a status of Pending Payment, Partially Paid, Paid, or Cancelled. If a claim has a status of Deferred, then it will only be included in the accrual calculations if no new claim has been generated for the deferred claim or if the new claim has a status of Open or Approved.

The system retrieves the Accrued Revenue Distribution Code from the claimback contract. The Accrued Revenue Distribution Code is provided by default to the claimback contract line for the Order Management Business Unit, and it is then used to retrieve the Accrued Revenue ChartField information and to populate that information in the Accrued Revenue transaction table for debit entry.

The system retrieves the Claimback Distribution Code from the claimback contract. The Claimback Distribution Code is provided by default to the claimback contract line from the Order Management Business Unit, and it is then used to retrieve the Claimback Revenue ChartField information and to populate that information on the Accrued Revenue transaction table for the credit entry.

A user can review transactions written to the Accrued Revenue transaction table before they are posted to the General Ledger on the Claimback Accruals Inquiry page.

Accrued Revenue transactions written to the Accrued Revenue transaction table are retrieved and posted to the General Ledger using the Journal Generator batch process (FS_JGEN). A special journal template has been created for Claimback Accrued Revenue. A journal entry is made to the Accrued Revenue ChartFields at the end of the current period, with a reversing entry to the same account in the start of this period. A user can review Accrued Revenue transactions that have been posted to the General Ledger on the GL Accrued Revenue page.

Click to jump to top of pageClick to jump to parent topicPages Used to Review Claimback Accruals

Page Name

Definition Name

Navigation

Usage

Claimback Accrual Inquiry

CB_ACCRUALS_INQ

Order Management, Claimbacks, Review Claimback Information, Claimback Accrual Inquiry

Inquire on the details of claimback accrued revenue transactions by Vendor ID, Claimback Contract ID, or Order Management Business Unit. The transactions that appear are generated from the Claimback Claims and Accruals process.

GL Accrued Revenue

CB_GL_ACCRUAL

Order Management, Claimbacks, Review Claimback Information, GL Accrued Revenue

Inquire on the details of the accrued revenue accounting entries that are posted to the General Ledger.