How Supplier Claims Are Processed

On a periodic basis, a distributor creates supplier claims to collect on channel incentives. Typically, earned incentives are gathered and associated with a supplier claim.

1. After an accrual is captured in Channel Revenue Management and earned, it's eligible to be picked up in a supplier claim. Manual adjustments are also reflected in supplier claims.

2. A supply chain application administrator can generate a supplier claim on demand or schedule it as a batch process on a periodic basis, using the Generate Supplier Claims scheduled process.

   • The process can generate a single claim for a single supplier site, or multiple claims, at least one claim for each supplier.

   • Various parameters can be used to identify the earned accruals and manual adjustments to be included for claim generation.

   • The generated claim can be immediately sent to Payables for supplier payment or sent to the claim analyst for review and approval.

3. The Financials Cloud integration can be configured to collect payment from the supplier.

4. Claims are settled by the Payables process Import Payables Invoices, with the Source parameter set to Claims. This checks when payment has been successfully debited and retrieves settlement details such as debit memo number or check number to confirm the claim settlement.

5. A general accounting manager can relieve accruals in Channel Revenue Management on demand or schedule it as a batch process on a periodic basis using the Create Accounting scheduled process.

6. After payment, a supply chain application administrator can close the settled claims on demand or schedule it as a batch process on a periodic basis using the Close Settled Claims scheduled process.

7. If the supplier declines a claim line, the distributor investigates and creates a manual adjustment to reverse the accrual.

How to Claim Supplier Accruals

1. Schedule the Generate Supplier Claims process. This creates claims for the channel accruals and manual adjustments.

   • Claim status: Settlement Pending

   • Each claim settlement line contains the program and the line items on which it was applied.

2. Import these claims to Payables using the Import Payables Invoices process. The claims are now available in Payables for payment.

3. Process the Payables invoice.

4. Close the claims after payment is confirmed by running the Close Settled Claims process. This updates the claim with:

   • Claim status: Settled

   • Invoice or payment instrument details issued by Payables