Create Supplier Annual Programs

A supplier annual program is created from a supplier annual program type which acts as a template for the program.

The supplier annual program sets the default value for some of the attributes such as currency and calculation method. Program types can also be used to define the tier type for volume rules. With appropriate roles, you can change the status of a channel program to approved or rejected. You can also withdraw a channel program which changes the program status back to draft.

How to Create Supplier Annual Programs

1. From the Navigator, click Supplier Channel Management under Order Management or Procurement to navigate to the Manage Supplier Programs page.
2. Click the New icon on the Manage Supplier Programs page to create a new program. The Create Program page opens as a new tab.
3. Select the supplier annual program template you want for your program from the Program Type list.
4. Select the business unit for which you're creating the program.
   Note: You can see only those business units that are assigned to you.
5. Click the Supplier Site icon to select the supplier and site for the program. This is the supplier site used to qualify invoices and the supplier site used to collect payment for a related program claim.
6. Click Continue. The detailed page opens. The fields you see depend on your program type. On the General tab:
   1. Enter the name of your program in the Name field.
   2. Select the calculation method for your program from the Calculation Method list.
      • Retrospective: Retrospective volume rules further encourages purchases because your highest tier attainment retrospectively apply to earlier purchases.

        If you select the retrospective calculation method without a pre-qualified tier or you reach a tier above your pre-qualified tier, then your earlier accruals are adjusted based upon reaching a new tier.

      • Stepped: If you select the stepped calculation method, the discount that each tier specifies is applied to the order.
   3. Select the user status for your program from the Status drop-down list. The default value is the default user status for the Draft system status.
   4. Enter the start and end dates for your program.
   5. The Currency field is populated with the currency of the program type. You can change this if required.
      Note: If the program type doesn't include the currency, this field is populated with the business unit's ledger currency.
   6. Enter values for the remaining fields, like Description, Supplier Authorization, and Owner, if required.
      • Program Code: Enter the program code decided by your business. Leave blank for the application to generate the code.
      • Use Notes and Attachments to capture more information about the program.
   7. Click to expand the Additional Information section. This section contains the descriptive flexfields configured for your channel programs. Enter the details as required.
   8. Click to expand the Alternate Supplier Sites section. Here you can add additional supplier sites for which the program is eligible, in addition to the primary supplier site.
      Note: If your organization has rebate relationships directly with a manufacturer but buys from a distributor, then the supplier annual rebate program is from the manufacturer and the product rules are based on the manufacturer’s catalog for easier rule administration. However, supplier invoices are from an alternate supplier site, or the distributor, and not the manufacturer.

      This reduces the administration of supplier annual programs with alternate distributors through catalog-based product rules.

7. Click the Volume Rules tab. Here you can create the eligibility rules for your program, which includes the discount type, tier definitions, and products eligible for discounts.
   1. Click the New icon to add a volume rule.
   2. Enter a name for the volume rule.
   3. Select a tier type.
      • Purchases: The discount is calculated based on the total value the items in your orders. The discount type for purchases is percent.
      • Quantity: The discount is calculated based on the quantity of items ordered. The discount type for quantity is amount.
        Tip: You can accomplish growth-related supplier annual programs by converting growth percentages to purchase value or quantity based tiers.
   4. If your tier type is Quantity, then you can select a UOM for your items from the UOM list.

   5. For each volume rule, you must define tiers for the discounts, and products that are part for the volume rule.

   Tiers

   • In the Tiers table, create the tiers for your volume rule. Enter the name, the tier range, and discount percent or amount.
   • The Pre-Qualifying Tier check box is available when the calculation method is retrospective. If this box is checked, then the respective tier effectively becomes the first tier. Select the Pre-Qualifying tier check box against a tier if you're sure of attaining the volume, in purchases or quantity, mentioned in the tier, within the life cycle of your program.

   Products

   You can add products at 3 levels:

   • All Items: All the items in your inventory become eligible for discounts. If you want to exclude categories or items from receiving the discounts, you can do so using Exclusions.
     Note: All Items means all items that are on the supplier invoice and defined in the item master. The item specified in the supplier invoice CSV file must be defined in the item master as well. Description based items that are not defined in the item master are not supported.
   • Category: You can select categories from your catalog. The items belonging to the categories become eligible for discounts. If you want to exclude certain items present in a category from receiving discounts, you can do so using Exclusions.
     Note: For categories to become available for selection, you must add the respective catalog to the supplier trade profile.
   • Item: You can select each item eligible for discounts.

     Supplier Item

     Your supplier might have the items mapped differently based on their business. For example, they might use a different item code for the same product. If your supplier items are mapped to your internal items, you can select that from the Supplier Item list. You can set up the Supplier Item and internal item mapping under the Trading Partner Item relationship type in the Manage Item Relationships UI in Product Information Management.

   If you select the Include Volume, Exclude Discount check box against a line, the purchase value or quantity of the line is considered for your tier attainments, but the line doesn't get a discount. For example, during a pandemic, your Personal Protective Equipment (PPE) purchases may count toward your volume attainments but are ineligible for an annual rebate.

8. Click Save and Close to save and go back to the Manage Supplier Programs page or click Save. The program is now created in the Draft status.
   Note: You can delete programs that are in the Draft status from the Manage Supplier Programs page by selecting them and clicking the Delete icon.