How Supplier Ship and Debit Works

You can use Channel Revenue Management to create a supplier program and activate it so eligible supplier accruals can be automatically applied at order capture. Here's how the distributor's supplier ship and debit business process works in Channel Revenue Management.

1. The distributor requests a special price or the supplier issues a special price.

2. An agreement between the distributor and the supplier is reached with the supplier providing an authorization number to the distributor.

3. The distributor defines a supplier ship and debit program capturing the supplier, date effectivity, customer eligibility, and product eligibility.

   • Channel Revenue Management gets supplier sites already defined in Procurement and associates them to a supplier ship and debit program.

   • Date eligibility can be based on requested ship date or ordered date.

   • Customers from Trading Community Hub are used to define customer eligibility.

   • Item and unit of measure attributes from the Product Information Management work area can be used to define product eligibility rules.

   • The supplier incentive can be defined as a flat amount, a new cost, or a percentage.

   • A supplier ship and debit program must belong to the same business unit as the supplier site.

4. The distributor activates the supplier ship and debit program. Approvals are optional.

5. The distributor creates a sales order and eligible program accruals are applied automatically or by request.

6. Earned accruals are tracked and accrued. Manual adjustments can be created for accruals that were missed or needed correction.

7. Supplier claims are generated on demand or scheduled on a periodic basis.

8. Supplier claims are sent to Payables to collect payment from the suppliers, and accruals are relieved.

9. After payment, the claims are closed.

Business Process Flow: