Accural Budgets in Trade Management

8/11/2019 Accural Budgets in Trade Management

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ACCRUAL BUDGETS IN TRADE MANAGEMENT

ABSTRACT

The Accrual Budgets allows users to use budgets based on real time sales data.It does not require having to spend time and resources to perform rigorous budget planning.This paper demonstrates creation of a fully accrued budget that automatically creates anaccrual offer; creation of orders, shipping orders, viewing the utilized and earnedamounts in Accrual Budget/Offer checkbooks. It also demonstrates usage of both types offully accrued budgets: Accrual per Order and Cumulative Order Volume.

SCOPE

1. Accrual Budget- Accrual Per Order- Creation and Execution

1.1 Create an Accrual Budget (Accrual Per Order)1.2 Approve the Accrual Budget and Activate it.1.3 Book and Ship the Order in Order Management1.4 Run Funds Accrual Engine Program1.5 View the utilized, earned and committed amount in Accrual Budget

Checkbook1.6 Track the Data in Table Level.

2. Accrual Budget- Cumulative Order Volume -Creation and Execution

2.1 Create an Accrual Budget (Cumulative Order with Retroactive FlagOn)

2.2 Approve the Accrual Budget and Activate it.2.3 Book and Ship the Order in Order Management

2.4 Run Funds Accrual Engine Program2.5 View the utilized, earned and committed amount in Accrual Budget

Checkbook2.6 View Accruals and Adjustments in Budget Details2.7 Explanation of how retroactive calculation works.



1 -Accrual Budget- Accrual per Order-Creation and Execution

A fully accrued budget starts with zero funds when it is created. It is also called a livefund. The benefits of using a fully accrued budget are that organizations do not have tospend time and resources to perform rigorous budget planning. They can accrue budgets

based on real time sales data. Fully accrued budgets can be created to accrue funds forcustomer, or accrue funds for sales activities (1). Please refer to Oracle® TradeManagement User Guide Release 11i Part No. B13541-01, 9.3.2 Fully Accrued Budgetfor more information.

1.1. Create an Accrual Budget (Accrual Per Order)

• Log into CRM HTML Login as trademgr/welcome : Oracle Trade ManagementUser

• Budgets> Create

• Select Accrual Budget as Setup type

• Enter the fields below

Field Value

Name Name of Budget

Number Number of Budget

Type Fully Accrued

Category Campaign Execution Budget

Budget Amount 0- Fully accrual budgets always start from0.

Currency Select your currency,.eg.US Dollar

Owner (Select an Owner if not defaulted in

e.g. Sonneshein, Mr. Evans

Start Date Current Date

DescriptionAccrue To Customer

Accrual Basis Accrual Per Order

Discount Group of Lines

Liability Flag Checked/Not Checked.



Liability Flag

For fully accrued type of budgets with accrue to is ‘customer’, if liabilityflag is on, then it updates Budget, Committed and Utilized columns with

the accrued amount. When the flag is off, it updates budget column only, but does not update the Committed and Utilized columns. (2)

• Create

• Click on Accrual Parameter Details


Field Value

Level Item Number

Name Select your Item

UOM Select your UOM, e.g. Each

Minimum Volume Select the minimum quantity that must be purchased to qualify for the offer, e.g. 1

Volume Type Select Volume Type, e.g. Quantity

Discount Enter your percentage

Discount type Select your discount Type, e.g. Percent

• Update

• Advanced Options



Advanced Options

Advanced options are an Oracle Advanced Pricing feature that enablesyou to define groups of modifiers where the modifiers in a group areincompatible with each other. Modifiers (Offers in Trade Management) in

the same incompatibility group may not be used together on the sametransaction. (1)

• Select Phase

Phases This is an alternative method to precedence which is used to determinewhich modifier should be selected when multiple modifiers in the sameexclusivity or incompatibility group are eligible to be applied to the same pricing line within a pricing phase. The modifier which gives the lowest price or most advantageous price to the customer on the given pricing linewill be applied. In Oracle Advanced Pricing, the Pricing Engine looks atthe phase when deciding which lists should be considered in a PricingEvent. You can determine the order event (unrelated to Marketing event)and phase to which discounts and promotions belong.(1)

• Select Buckets

Buckets Buckets determine how modifier price adjustments are applied to the list price of an item to calculate the selling price. Modifiers use the previous buckets sub-total for percentage calculation. Modifiers within the same bucket are Additive. This means that they are added together, andsubtracted from the previous buckets total. You can create unlimitedamount of buckets to calculate selling price. For example, discountsassociated with bucket 0 use list price as their calculation basis. Bucket 1 prices use the subtotal resulting from subtracting bucket 0 discounts fromlist price as their calculation. Bucket 2 usesthe subtotal remaining after subtracting bucket 1 discounts from the bucket0 subtotal, and so on.(1)

• Select Incompatibility Groups

Incompatibility Groups

You can define modifier incompatibility. Modifiers with sameincompatibility group and phase combination cannot be applied together.You can determine the pricing bands to which the various discounts and promotions belong to.You can also determine whether the discounts and promotions areincompatible or exclusive.(1)



• Select Print On Invoice

You can determine whether the offer or the discount should be printed onthe invoice, or should automatically be adjusted in the unit price without

showing the discount.(1)

• Select Precedence

Precedence

Precedence is used to resolve incompatibility. Precedence controls the priority of modifiers and price lists. If a customer qualifies for multiplemodifiers that are incompatible with each other, precedence determinesthe discount that the customer is eligible for based on the precedence levelof the modifier. Precedence is the final tiebreaker for the determining

which offer to apply. A lower value has higher precedence than a highervalue.(1)

Example:

In this example, we have selected the Incompatible Group as null so that thisoffer/accrual budget would be applied with other offers with the same phases. If we haveselected an incompatible group then Advanced Pricing would have checked thePrecedence of the all eligible offers with the same phase and incompatible group andapplied the one that has the lowest Precedence value.



• Execution

Market Eligibility

Defining the market eligibility and product eligibility for a budget, ensuresthat the budget is reserved to fund trade promotions only for:■ regions and territories that you have specified in the market eligibility■ products and product categories that you have specified in the producteligibility

For a fully accrued budget, you can define market eligibility by using thehighly configurable qualifier contexts and attributes that are set up inOracle Advanced Pricing. By using qualifier contexts and attributes, youcan set up market eligibility for a fully accrued budget in a manner that issimilar to setting up market eligibility for a fixed budget. You can define

market eligibility for customers, buying groups, lists, segments, andterritories.If a fully accrued budget either accrues to the sales level, or to thecustomer level with the liability flag off, then you can use the amount inthe fully accrued budget to fund offers just like a regular fixed budget. Insuch cases, the eligibility validation described for fixed budgets alsoapplies to fully accrued budgets.(1)


Field Value

Condition Select Condition from LOV, e.g. ‘=’

Group Number Default is value is –1, type the groupnumber.

Market Context Select your Market Context, e.g. Customer

Context Attribute Select Context Attribute ,e.g.Customer name

Attribute Value From Select Attribute Value based on yourContext Attribute selected.

• Select Group Number

Group numbers are used to create combinations for market eligibility.Group numbers determine how the rows are combined with each other.Rows with the same group number are evaluated as an AND condition,where as rows with different numbers are evaluated as an OR condition(1)



IMPORTANT NOTE/TIPS:

If you assign market eligibility selections to the same group or if you assignthe same market eligibility selection like Customer name to group -1 and group 10 forexample, offer will not get applied to the order.

Example:

Qualifier Value From Group Number

Customer Name = AT&T Universal Card Jacksonville (OPS) Bill To -1

Customer Name= AC Networks Ship to -1

or

Qualifier Value From Group Number

Customer Name = AT&T Universal Card Jacksonville (OPS) Bill To 10Customer Name= AC Networks Ship to -1

Same Group number means the pricing engine will do an intersection of all these market

eligibilities. An intersection of individual customer name and bill to sites will always beempty. Hence the offer did not apply..Same group number is a valid option when the two market eligibilities individually resultin a group of customers. The same group number will result in a set of customers thatappear in both the groups’..The behavior of group number -1 is reserved for one purpose. It is added to every otherqualifier group in the market eligibility. It was given as a easy way to specify onecondition that will apply for all qualifiers. A good example will be

Qualifier Value From Group Number------------- ---------- -------------Order Type My Order Type -1Customer Name AC Network 10Customer Name AT&T 20



Here customer want to give the offer to AC Network and AT&T only for those ordersthat are booked using "My Order Type"

As a result, you need to give unique group numbers for each of the market eligibilities.(3)

Example:

Only Customer AT&T will be eligible to use this accrual offer when they order the ItemAS54999.



1.2 Approve the Accrual Budget and Activate it.

• Go Back to Budget Details

• Request for Approval

• Confirm

• Obtain Budget Approvals

• Click Sign Out link at upper right corner to exit Trade Management

Note: You should sign out of each application when switching between different

User responsibilities. Otherwise you might get error messages when attemptingto login.

• Log into Portal as Default Marketing Approver or whoever the approver is forthis budget set up. :

• Home> Tools

• Worklist

• Approval notification

• Approve

• Log out at the upper right corner to logout of Workflow Worklist.

• Log into CRM html as trademgr / welcome : Oracle Trade Management User

• (T) Budget

• Select the budget you’ve just created- Example- PY Demo Accrual Budget I

Status should be Active

Created Accrual Offer (e.g. - PY Demo Accrual Budget I) automatically withthe budget approval



1.3 Book and Ship the Order in Order Management

• Log into Order Management as Order Management Super User, Vision Operations(USA)

• Order Management module opens

• Create a Sales Order

• Orders, Returns > Sales Orders > Order Information

Field Value

Customer Enter your customer (eg AT&T UniversalCard)

Order Type Mixed

The following values default in:

− Customer Number

− Ship to Location

− Bill To Location

− Order Type

− Price List

− Sales Person

− Currency

− Payment Terms

− Warehouse

Example



• Orders, Returns > Sales Orders > (T) Line Items

Field Value

Ordered Item Enter your product (AS54999 is seeded)

Quantity 1Scheduled Ship Date Current Date

• Actions> View Adjustments

• Make sure that Accrual Budget/Offer you have created was picked.

• Apply

• Book the Order.- Order number is 56752



• Ship The Order

• Go to Shipping > Transactions>

• Enter From Order Number – 56752 > Find

• Actions> Launch Pick Release

It will Launch Following Concurrent Requests

• View> Requests

Concurrent Requests:Pick Selection List GenerationPick Slip ReportShipping Exceptions report



• Make sure those are completed with no error.



• Select Delivery Tab>

• Select Ship Confirm> Go



Following Concurrent Requests will be launched:

• To Close the Line, Run the following Concurrent request



• Submit a new Request>

Select Workflow Background ProcessItem Type: OM: Order LineProcess Timeout: Yes

Process Deferred: YesProcess Stuck: Yes

• Go Back to Order Line to make sure that the Status is Closed.

• Sales Orders> Query Order number- 56752> Line Items



1.4 Run Funds Accrual Engine Program

The Funds Accrual Engine updates the budget related to the offer and the order. The

utilized and the earned columns in the budget get updated according to the discounts thatare offered against the orders that the customers have placed. The budget shows theutilized and earned amount based on the discount applied to the order, and the orders thatare shipped.

This is an engine that extracts all accrual and discount information from sales ordersexecuted at all ordering channels. The following are the categories of Events handled bythis engine:■ Calculates budget utilization and earnings based on ship confirmed orders.■ Handles a return orders’ impact on budget utilization and earnings.■ For fully accrued type of budgets with accrue to is ‘customer’, it updates Budget and

Utilized columns with the accrued amount.■ For budgets with accrue to ‘Sales’, it updates the Budget column but does not updatethe Committed and Utilized columns.■ For Volume offer adjustments, it calculates the accruals for each sales order and makesaccrual adjustments that are necessary as a result of volume offers.■ For accrual rates that are adjusted retroactively, it creates the adjustments based onsales order information in the past.(1)

• Log into Forms as Oracle Marketing Administrator

• Setups > Concurrent Request

• Submit a New Request > Single Request > OK

• Select AMS-TM : Funds Accrual Engine (LOV)

Shows the parameters screen

Field Value

Run Exception Message No (Select “Yes” only if you wantexception message)

Run Budget Utilization for AdjustedOffer

Yes

Run Budget Utilization for VolumeOffer

Yes (if for Volume Offer)

Run in Debug Mode No (Select “Yes” only if you want to



debug)

• OK

• Submit

• OPTIONAL: To schedule concurrent requests

• Schedule

Schedule screen appears

OPTIONAL: To apply a previously saved schedule

• Apply Saved Schedule

Screen appears for all listed pre-defined schedules

• Find “Pre-defined Schedules” > OK

Schedule screen appears again

This automatically gets defined as a periodically run job. You can also specifythe End Date and End Time and also the frequency at which its re-run.

• OK

OPTIONAL: To run job as soon as possible (default setting)

• As Soon As Possible > OK

OPTIONAL: To run job once

• Once > OK

OPTIONAL: To run job periodically

• Periodically

Enter Start At and End at dates and times (leave end date blank to run

indefinitely)

There is also an option to save the schedule by checking the “Save this

schedule” box

• OK Submit No

No (do not submit another request)



• File > Exit to quit professional forms

1.5 View the utilized, earned and committed amount in Accrual Budget Checkbook


• Budgets> Click on The Accrual Budget that was created- PY Demo Accrual I

• Checkbook

• View the Utilized, Earned and Committed columns are updated.

• Click on Earned to view the details



• Click on GL Details to view the GL Details.



1.6 Track the Data in Table Level.

How to Track the Data?

When the budget fist created, it was inserted into ozf_funds_details_v

You can track the budget by

Select * from ozf_fund_details_vWhere fund_number = 11632-----à you can view that numberin Budget Details page.

The following query can be used to see all accruals for a given OM order number:

Select * from ozf_funds_utilized_all_vl

Where object_type = 'ORDER'And object_id=(select header_id from oe_order_headers_all where order_number=?)

Same record is inserted into ozf_funds_all_b table.

Once the order is booked and Funds Accrual Engine is run, accrual data is inserted intoozf_funds_utilized_all_b table.

One way to capture the data in ozf_funds_utilized_all_b table is to check the FundsAccrual Engine Log file.

Example:

For Example, the budget that we have created- PY Demo Accrual IAnd the Order 56752 that was submitted can be seen in this log file.

To find the related lines, search the Fund Id of the Budget- which is 11130 in ourexample. This can be grabbed from ozf_fund_details_v

Select fund_id from ozf_fund_details_v

Where fund_number = 11632;

Returned fund_id= 11130



D: post_adjust_to_budget() loop iteration end l_remaining_amount 0 l_adj amount 190fund_id 11130 D: Ends successfully post_accrual_to_budget price_adj_id=224289 amount=190 D: adjust_accrual() post_accrual_to_budget for price_adjustment_id 224289 returns S /****** Adjustment Success *******/ Offer Id: "57823" Order Number: "56752" PriceAdjustment Id "224289"

/************************* DEBUG MESSAGE END***********************/ price adjustment id is the unique number that can help us to track this accrual record.

If you execute the following query, you will see all columns that belong to thisutilization.

Select * from ozf_funds_utilized_all_bWhere price_adjustment_id=224289;

In this table, you should be able to see the utilized amountWhich is 190 in our example.



You can also see the data in QP tables by executing

Select * from qp_list_headers offs, ozf_funds_utilized_all_b utilWhere util.plan_id = offs.list_header_idAnd util.price_adjustment_id=224289;

If the order is booked only, then GL_POSTED_FLAG is N in this table.Once you ship and close the Order and run Funds Accrual Engine,GL_POSTED_FLAG must be Y.

When GL_POSTED_FLAG is N, you can see the Utilized column is updated in theBudget Checkbook.

When GL_POSTED_FLAG is Y, you can see the Earned column is updated in theBudget Checkbook.

Only if GL_POSTED_FLAG is Y, you can see the Offer being returned inAssociate Earnings of Claim. When you associate earnings, you associate an offer to aclaim so that the claim is tied to the offer, and to the budget that is funding the offer.You can then view how much the customer has earned for the associated offer. In mostcases, you will associate earnings for many offers rather than just one.



2. Accrual Budget- Cumulative Order Volume -Creation and

Execution

Cumulative Order Volume Type Budget is a budget where in the qualified customersaccrue funds based on their cumulative purchase amounts spanning over a period oftime. The retroactive flag determines whether past orders should also be adjusted based on the new accrual rate achieved. (1)

2.1 Create an Accrual Budget (Cumulative Order with Retroactive Flag On)

• Create a Budget same as described in 1.1. For Accrual Basis, select CumulativeOrder

• Click on Retroactive Flag On.

• Accrual Parameters

• Define the Discount Rules

Example:

Range in Discount in

Quantity(Each) Percent

1-3 10

4-6 20

7-20 30



• Select an Item (Example: Item name: AS54999)

• Update

2.2 Approve the Accrual Budget and Activate it.

Approve the Accrual Budget and activate it as described in 1.2.

2.3 Book and Ship the Order in Order Management

• Log into Order Management as Order Management Super User, Vision

Operations (USA)

• Order Management module opens

• Create a Sales Order

• Orders, Returns > Sales Orders > Order Information



Field Value

Customer Enter your customer (eg AT&T UniversalCard)

Order Type Mixed

The following values default in:

− Customer Number

− Ship to Location

− Bill To Location

− Order Type

− Price List

− Sales Person

− Currency

− Payment Terms

− Warehouse

• Orders, Returns > Sales Orders > (T) Line Items

Field Value

Ordered Item Enter your product (AS54999 is seeded)

Quantity 1

Scheduled Ship Date Current Date

• Actions> View Adjustments

• Make sure that Accrual Budget/Offer you have created was picked.

• Apply

• Book the Order.- Order number is 56753

• Ship The Order




• Enter From Order Number – 56753

• Find

• Actions> Launch Pick Release

• Go to Shipping > Transactions


• Select Delivery Tab

• Select Ship Confirm> Go

• To Close the Line, Run the following Concurrent request

• Submit a new Request>

•

Select Workflow Background Process• Item Type: OM: Order Line• Process Timeout: Yes• Process Deferred: Yes• Process Stuck: Yes

• Go Back to Order Line to make sure that the Status is Closed.

• Sales Orders> Query Order number- 56753> Line Items

Repeat the same process to create two new orders: one with 5 items of AS54999 andone with 7 items of AS54999.



2.4 Run Funds Accrual Engine Program

• Log into Forms as Oracle Marketing Administrator

• Setups > Concurrent Request

• Submit a New Request > Single Request > OK

• Select AMS-TM : Funds Accrual Engine (LOV)

Shows the parameters screen

Field Value

Run Exception Message No (Select “Yes” only if you wantexception message)

Run Budget Utilization for AdjustedOffer

Yes

Run Budget Utilization for VolumeOffer

Yes (if for Volume Offer)

Run in Debug Mode No (Select “Yes” only if you want todebug)

• OK

• Submit

2.5 View the utilized, earned and committed amount in Accrual Budget Checkbook


•

Budgets> Click on The Accrual Budget that was created- PY Demo CumulativeTest I

• Checkbook

• View the Utilized, Earned and Committed columns are updated.



• Click on Earned link



You will see both Accrual amount and the Adjustment amounts calculatedretroactively.

2.6 How Does Retroactive Calculation Work?

An order line is included in the volume calculation only after it has been shipped orinvoiced (depending on profile ‘OZF: Create GL Entries for Orders'). For example

Range in Discount in

Quantity(Each) Percent

1-3 10

4-6 20

7-20 30

First book order 1, qty=1, discount is 10%. No shipment.Then book order 2, qty=3, discount is still 10%. No shipment.



Then book order 3, qty=7, discount is still 10% since total shipped quantity is 0.

Case 1> ship order 1 and 2, run funds accrual engine, all orders are adjusted to 20% sincetotal shipped quantity is 4Case 2> ship order 2 and 3, run funds accrual engine, all orders are adjusted to 30% since

total shipped quantity is 10Case 3> ship order 1, 2 and 3, run funds accrual engine, all orders are adjusted to 30%since total shipped quantity is 11 (2)

Here is how calculation works in our example:

Item AS54999 Unit Price= 1900$

Order

No Quantity

Purchased Accrual % Accrual

56753 1 10 1900 * 0.10=190

56754 5 20 1900 * 5*0.10= 950

56755 7 30 1900* 7*0.10=1330

Although accrual % are differs, when the accrual amount is calculated, it calculates theamount only at the first tier, e.g. 01%, only at first. The difference will be calculated andadded when the adjustments are being added as shown below.

Order

No Quantity

Purchased Accrual

% Accrual Volume Offer

Adjustments Total

Accrual

56753 1 10 1900 1 * ( 30-10)/100*1900=380 380

56754 5 20 9500 5*( 30-20)/100*1900 +5*(20-10)/100*1900=1900

1900

56755 7 30 1330 7*( 30-10)/100*1900=2660 2660

When the adjustment is calculated for the first tier- 10%, only retroactive calculation isdone which is the difference between the last tier and the first tier multiplied by the unit price.



When the adjustment for the second order is calculated, first the retroactive calculation isdone-difference between last their and the second tier multiplied by unit price - then thedifference between the first and second tier multiplied by unit price is added becausesecond order should accrue 20% of the unit price, however, it accrued only 10 % whenthe accruals is calculated (as shown in the screen shot, accrual= 950 for order 56754).

Hence, the difference 10% is added in the adjustment.

When the last tier is calculated, there is no need for a retroactive calculation as it is thelast one. Only the difference between the first tier and the last tier multiplied by unit priceis added as last order should have accrued 30% of unit price, however, it only accrued10% ( shown in the screen shot, accrual= 1330 for the order 56755). Hence the thedifference 20% accrual is added when calculating the adjustment.

REFERENCES

(1) Oracle® Trade Management User Guide Release 11i Part No. B13541-01(2) Ying Zhao, Manager, Trade Management Development (3) Note 316062.1- When Same Two Qualifier Value of Market Eligibility IsUsed, Offer Is Not Applied.

Documents

Accural Budgets in Trade Management