How Supplier Annual Program Works

You can use Channel Revenue Management to create supplier annual programs and activate them so that eligible supplier accruals are automatically calculated from supplier invoices imported into Channel Revenue Management. Here's how the supplier annual program business process works in Channel Revenue Management.

This image shows the summary of supplier annual program flow.

The wholesaler or retailer activates their supplier annual programs.
The wholesaler/retailer buys from the supplier.
Supplier ships goods to the wholesaler or retailer and supplier invoices are created for the shipment. Volumes are accumulated across orders.
Channel Revenue Management then processes the supplier invoices imported using CSV files to create accruals.
Earned accruals are then tracked, posted, and accrued.
Supplier claims are generated on demand or scheduled on a periodic basis.
Approved supplier claims are sent to Payables to collect payment from the suppliers, and accruals are relieved. If the supplier rejects a claim line, a manual adjustment can be created to reverse the accrual.
After payment, the claims are closed.

This image shows the supplier annual program business flow. — Business Process Flow

How Supplier Annual Rebates Work with Imported Supplier Invoices

The Import Management framework can be used to import supplier invoices using CSV files into Channel Revenue Management. This is the same Import Management framework supported for supplier rebates. Supplier annual rebate accruals are then accrued according to the terms of the agreement with the supplier.

Consideration: If you import supplier invoices via the CSV file (Batch Transaction Type = ORA_SUPPLIER_INVOICE_CSV), you must import the CSV file, and then schedule the processes to create accruals (Create Accruals for Volume Programs).

A set of validations are in place to identify any errors during import.
The successful upload of the CSV file creates a batch of transactions for processing in Channel Revenue Management.
The Create Accruals for Volume Programs process checks the eligibility of invoice lines, aggregates and creates accruals for the eligible ones. A supply chain administrator can schedule the program on a periodic basis, for example, monthly.

Unlike supplier rebates, supplier annual rebates don't create an accrual for each invoice line. Instead, qualified invoice lines are aggregated and a single accrual is created. Invoice lines are aggregated by business unit, program, volume rule, period, item, ship-to location, bill-to location, and alternate supplier site if applicable. This is an important distinction from supplier rebates.