SYSPRO: Trade Promotions

During review and reconciliation, a System mustprovide the ability to:• View open and closed deductions• Select deductions by sub account, deductioncode, transaction date, follow-up date andamount ranges• Maintain notes and follow-up dates• Automatically write-off small amounts• Automatically generate accounting transactionsand re-instate unauthorized deductions as A/Rdebit memos.• Resolve, write-off and match deductions to availableaccrued promotions and to change the deductioncode.The SYSPRO Solution and Why It MakesSense (and Dollars) for SME SuppliersUntil recently, small to mid-size manufacturers andsuppliers attempting to manage promotions havehad limited choices, ranging from labor-intensiveinvestigations and time-consuming manual calculationsto costly, tier one, high-end software Systemsor to stand-alone solutions that require extensiveSystem integration.The SYSPRO Trade Promotion Management System(TPM System) was specifically developed forsmall-to-mid-size manufacturers and distributorsthat target the Consumer Package Goods andsimilar industries that offer trade promotions toretail outlets. The SYSPRO TPM System is a naturalextension of SYSPRO ERP, which establishesorganizational controls, SYSPRO CRM, whichmanages complex business relationships,SYSPRO Advanced Planning & Scheduling, whichpromotes on-time delivery throughout the supplychain and SYSPRO E-Commerce, SYSPROEDI and SYSPRO Web Applications which promoteefficient supply chain communications.The SYSPRO TPM System is extremely flexibleand encompasses Promotion Management, DeductionManagement, Complex Pricing andMulti-Tier Credit Checking. The System can setuppromotions by order date or requested deliverydate ranges; it can qualify promotions byweight, volume or quantity as well as for stockcodes, product classes, product groups or departments.Additionally, it can specify promotionsfor individual customers, geographic areasor customer classes.The SYSPRO TPM System enables SME suppliersto plan and execute successful promotionswhile maintaining tight monetary controls. It automates,manages and controls all forms of vendorallowances, including the handling of documentationand the approval of deals. By automating theresearch, validation, and settlement of deductionsas well as charge backs and claims, suppliershave the opportunity to realize substantial savingsand improve cash flow by limiting unearned deductions.Because the SYSPRO TPM System fullylinks to other SYSPRO modules, suppliers gainall the advantages and efficiencies of a totally integratedSystem.The SYSPRO TPM solution lets a supplier setcommon and practical promotion rules, establishpricing based on individual products, productclasses or groups and extend promotions to aselect class of customers or geographic areas. Itenables users to easily identify qualified promotionsand to select them at the time of order entry.Because pricing groups cover multiple line itemsin order entry, users can easily recalculate pricesat any time. Additionally, the System enables productgroups to be designated by specific prices orpercentage discounts. Off invoice promotions cantake the form of price changes, line promotions ororder promotions. The System facilitates the trackingof accrued promotions, matching them withspecific deduction codes and even automaticallyapplies applicable pricing for qualified promotionsfor incoming EDI orders. A Deduction Review Facilityallows credit managers to easily authorize orreject and reinstate deductions.The SYSPRO TPM System provides the facilities to:• Establish promotion rules• Setup complex pricing rules• Accurately price sales orders based upon predefinedrules• Setup deduction codes by category• Establish a deduction review facility, a must

for businesses operating within this environment• Capture deductions when A/R cash is appliedto the customers accountMoreover, the SYSPRO TPM System provides fullintegration across the System to SYSPRO GeneralLedger, Accounts Receivable, Sales Ordersand EDI, an important consideration to establishoperation efficiency.SYSPRO TPM System and Complex PricingPromotional pricing can be very complex. Typically,prices are defined based upon one of the following:Stock Code, Product Group, Product Class orDepartment.Promoted products are typically offered usingbracket pricing. Sometimes the products are pricedbased on weight or volume or on a customer’sclass or region. Price is often based upon whetherthe items being purchased are for Delivery or PickUp – where the items being purchased are eitherdelivered to the customer, or alternately the customerindicates it will pickup or collect the goods.All in all, it can be a daunting task for a sales personto arrive at a correct price when entering anorder. However, the SYSPRO TPM System accommodatesall variances. Because pricinggroups cover multiple line items in order entry,users can recalculate prices at any time. The Systemenables product groups to be designated byspecific prices or percentage discounts. Additionally,off invoice promotions can take the form ofprice changes, line promotions or order promotions.The System facilitates the tracking of accruedpromotions, matching them with specificdeduction codes and even automatically appliesapplicable pricing for qualified promotions for incomingSYSPRO EDI orders.The process of approving promotional allowances canbe overwhelming, if not complex and time consuming.With automatic generation of accounting transactions,the SYSPRO TPM System facilitates promotionreview, allowing paybacks to the customer in theform of cash or credits. Deductions can be capturedduring Accounts Receivable payment processing.The SYSPRO pricing matrix can also relate to pricingthresholds based upon Quantity, Weight orVolume. Once the threshold has been defined, pricingis automatically applied.The SYSPRO TPM System also provides optionalextensions to the standard pricing matrix. These extensionsinclude Geographic Area and/or CustomerClass, extending the pricing to include either or both.The system also takes into account additional issuesthat affect pricing, such as multiple line itemsin a single sales order; ability to re-calculate pricesat any time and the automatic application of thecomplex pricing matrix for incoming EDI orders.Invoice AccuracyWhen submitting payments, customers often makedeductions for a variety of reasons. Some may befor advertising or promotional allowances; others maybe per contract; and still others may amount to finesfor vendor non-compliance. Because suppliers oftensell to large chain retailers, it is often the casethat one check from a corporate headquarters ismeant to cover payments for several chains, whichmay not even have the same name. At any rate, thereconciliation of deductions creates a tremendousadministrative burden and cost both for the supplier.The SYSPRO TPM System provides a tabular listof the deductions captured during Payments andAdjustments processing. Facilities in the System:• Select both active and closed deductions on severallevels• Change the customer for all or part of the amount• Change the deduction code for all or part of theamount• Resolve a deduction• Resolve a deduction by matching it against availableaccrued promotions• Reinstate a deduction by generating a debitmemo• Automatically write off small amounts• Keep notes and maintain a follow up date• Automatically generate accounting transactionswhen a deduction is changed or resolved• Write off a deduction

The SYSPRO TPM System FlowThe SYSPRO TPM SYSTEM flow starts with SalesOrder Processing. Once the merchandise lines havebeen added, the Complex Pricing and QualificationRules are applied to the items. Then, Accounts Receivableis updated through Invoice Processing.When the customer pays for the items, the paymentis processed as a Cash Receipt. At the timethe Cash Payment is processed, the Systemchecks to establish whether deductions and allowancesneed to be taken into account.The Deduction Review stage updates the TPMSystem and Accounts Receivable tables as required,depending upon the actions taken. And finallya Promotions Review facility updates the TPMSystem, Accounts Receivable and/or AccountsPayable tables.SYSPRO Multi-Tier Credit CheckingIntegration with SYSPRO ERP modules enablesTPM System users to take advantage of multi-levelcredit checking capabilities. Facilities are availableto establish multi-level hierarchy of customerscontained within the ERP System in additionto corporate holding companies, external to theSystem. Credit limits can be set and checkedagainst any level; Selective inclusion of outstandingdeductions can be addressed in credit checking;and Credit limit checking can be made forSYSPRO EDI ordersThe SYSPRO TPM System establishes a multitiercredit checking hierarchical relationship betweenboth active and non-active customers. An“active” customer is one that is part of theSYSPRO ERP System, while an “inactive” customeris one defined within the TPM System sub-System itself.Inactive customers are linked into the overall creditchecking hierarchy that is defined for a group. Creditlimits may be linked to inactive customers andtaken into account when the credit limit is checked.From a multi-tiered credit checking perspective, acredit limit needs to be set and checked againstthe highest tier within the hierarchy. All lower tiertransaction will be rolled up to the highest tier forcredit checking purposes.The facility to selectively include Receivable Deductionsin the credit checking process is also included,as is automatic multi-tiered credit checkingfor EDI orders.SYSPRO TPM System ReportsThe SYSPRO TPM System includes a host ofstandard reports, provides the facilities to generatecustom reports as well as to write reports usingthird party reporting tools. SYSPRO developeddata dictionary tools facilitate reporting on informationwithin the TPM module using the SYSPROReport Writer or third party reporting tools.Full SYSPRO ERP IntegrationERP integration is sadly lacking in many of theTrade Promotion Management products being offeredtoday. Either the product being offered isconsidered to be “stand-alone” whereby the issuesof TPM are dealt with in an isolated fashion, or thesolution is designed for the high end Fortune 500companies, and therefore out of the price rangefor the small to medium business.Because the SYSPRO TPM System integrateswith SYSPRO General Ledger, Accounts Receivable,Inventory Control, Sales Order & Invoicingmodules, among others, data enteredinto the TPM System automatically updates datain all the associated modules. With integrationinto SYSPRO EDI, orders transmitted in thismanner can be automatically entered with applicablepricing for qualified promotions applied.Additionally, with integration into Microsoft Outlook,email confirmations can be automaticallygenerated. Furthermore, integration withSYSPRO Customer Relationship Managementhelps to advance complex business relationships,while integration with SYSPRO Advanced Planning& Scheduling helps to maximize on-timedeliveries throughout the supply chain and integrationsto SYSPRO E-Commerce, SYSPROWeb Applications and SYSPRO EDI serves to facilitatesupply chain communications.

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