3412 Vistex Sales Incentives Composite IP vs. Transaction IP (1)

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Orange County Convention Center

Orlando, Florida | May 15-18, 2011

Summit Electric Supply –Vistex Composite IP vs. Transactional IP

Mark Lambert

Summit Electric Supply

Real Experience. Real Advantage.

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Agenda

Introduction

Compensation Challenge

Implementation process / Challenges

Results so far

What to remember


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Who We Are

Founded in 1977 in Albuquerque, NM

500 associates across in 21 branches across 4 states and

International presence in Dubai

#22 ranked electrical distributor in 2008, $384 million in sales

SAP go-live – 1/1/2007

ECC 6.0 EHP 4– SD, MM, FI

Vistex, Vertex, Delago

SAP BI, MDM, ISA

http://www.insummit.com/logos/summit_blue_sm.jpg

http://www.summit.com/images/Summit-Electric-Supply-Corporate-Office-Large.jpg


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Who am I

25 years distribution experience

Summit associate since 12/3/2002

Joined SAP implementation team in 2006

Functional and Technical lead for all Vistex modules (Sales

Incentives, Chargebacks, Customer Volume Rebates,

Foundation Data for Pricing).

Functional and Technical lead for SAP Pricing procedures.


[ Composite IP Consideration

When Evaluating Actual values and Target values together the Composite

solution by Vistex is truly the best solution unless you wish to develop your

own.

The primary driver behind composite processing is a matrix which reflects

the target and actual key figures being tracked for the plan. The actual key

figures may be updated from the IP documents or can be entered directly in

the matrix. Target key figures may be in the form of product revenue, gross

margin, business growth or any user-defined criteria. Auxiliary data such as

discretionary amounts, manual adjustments, guaranteed payments,

maximum draws, etc. can also be tracked in matrices.

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[ Composite IP Consideration

Composite is delivered with the Sales Incentive Module.

All applications are supported by the Composite Model

Chargebacks

Sales Incentives

Billbacks

Sales Rebates

Purchasing Rebates

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Incentive Background

Process Elements

$ calculated by Gross Margin.

Pay when paid.

Link Original to Return or Credit.

Split rate between Regular Commission and Bonus.

Reporting Consideration Paid / Un-Paid.

Commissions documents are created from Invoices and Sales

Documents.

Deduction for cash discount.

Scaled deduction for late payment per payment terms.

S4 Program attributes


[ Incentive Background

Transactional IP

Standard Commissions (400,000 IP docs annually)

Annual Bonus Commissions (400,000 IP docs annually)

Manual Commission Adjustments (200 IP docs annually)

Commission Reductions from Annual Customer Incentive

Programs. (50,000 IP docs annually)

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[ Incentive Background S4 Program

S4 Compensation Program attributes

Sales

Gross Profit

Gross Margin

Return on Net Assets

Strategic Supplier Mix

Target Account Sales Growth

Leadership and Development Index

All components have Target values !!!!!

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[ Implementation process / Challenges

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/N/IRM/IPCPB – Incentive Plan Builder



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[ Results so far

Setup time configuration and ABAP for Composite

increased 3 fold.

Dynamic reporting for Leadership and Sales Associates.

Real Incentive Plan Compensation based on performance.

Transactional IP Docs used as data records.

Accrual Document reduction.

Settlement Document reduction.

Process Reduction

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[ What to remember

Vistex Composite Model is standard with all Vistex

Components.

Increased Setup Time

Time savings on reporting and plan management.

Significantly reduced document creations with FI.

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] Thank you for participating.

SESSION CODE: 3412

Please remember to complete and return your

evaluation form following this session.

For ongoing education in this area of focus, visit www.asug.com.

3412 Vistex Sales Incentives Composite IP vs. Transaction IP (1)

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