Partner Quarterly Update - Cisco...Review Partner Feedback / Open Questions Operational Changes a....

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

January 2012

Partner Quarterly Update

Giorgio Campatelli, Regional Partner. Mgr., Sales Milan, Italy

Ramona Chávez, Country Enablement, Partner Engagement Lead

31 January 2012


Welcome

Objectives

Review Partner Feedback / Open

Questions

Operational Changes

a. Bill-to-IDs (BIDs)

b. Invoicing

c. Global Easy-Pay Process for

Programs

d. Trade–in Program changes

e. VAT

Timeline

Questions & Answers


Enable Cisco Systems (Italy) S.r.l. to sell all

products and services to all Italian partners, distributors,

and customers in country.

B.V. (NL) will migrate its contractual and selling

(delivery, invoicing, etc..) responsibilities with Italian

Partners, Distributors and other Customers to Cisco

Systems (Italy) S.r.l.

04 March 2012


• Share and receive operationally focused

information with our partner community.

• Discuss operational impacts, including

tools, programs, processes and

procedures and to listen to all

operational issues - strategic and tactical.

Gain Insight

Assess Impacts

Business Processes

Gather feedback

Enable

Contracts

Processes

Pre- & Post EnablementSupport

Follow-up

Engage

Benefits of Country Enablement

Inform, Listen, Adjust, Educate,

Execute and Support

PARTNER CONFIDENCE

Minimum Disruption Coordinated planning Timely communication

Business Continuity


New Cisco Sales Experience via Cisco Systems (Italy) S.r.l.

Doing

Business

w/ Cisco

Eligible

Partners

Product

Availability

Quoting &

OrderingInvoicing &

Payments

Delivery of

Products &

Services

Pricing Services

Doing Business with Cisco Systems (Italy) S.r.l.

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8Cisco Confidential© 2010 Cisco and/or its affiliates. All rights reserved. 8

High-Level Summary: Today vs. Tomorrow

Ke

y B

us

ine

ss

Sim

ila

riti

es

• Channel programs

• Legal Sales Agreements are between Cisco B.V. (NL) and Italian Distributors, Partners, and Customers.

• Quotes in English (no local tax / freight shown)

• B.V. Pricelists

• Purchase Orders are submitted to Cisco B.V. (NL).

• Cisco B.V. (NL) manages importation in the European Union (EU). Partners take title to goods in EU post customs clearance.

• Cisco B.V. (NL) responsible for invoicing. Standard payment terms are net 30.

• Channel programs: Benefits & availability remain the same; process changes

• Legal Sales Agreements are between Cisco Systems (Italy) S.r.l. and Italian Distributors, Partners, and Customers.

• Quotes in English (no local tax / freight shown)

• Existing Pricelists leveraged (no change).

• Purchase Orders are submitted to Cisco Systems (Italy) S.r.l.

• Cisco Systems (Italy) S.r.l. manages importation in the European Union (EU). Partners take title to goods in EU post customs clearance. Logistics model unchanged.

• Cisco Systems (Italy) S.r.l. responsible for invoicing. Standard payment terms are net 30.

• Upfront VAT on Services only.

Today

Cisco B.V.

Tomorrow

Cisco Systems (Italy) S.r.l.


• Partners, Distributors, & Customers in Italy will either:

• Have existing sales agreements migrated to Cisco Systems (Italy) S.r.l., or

• Have new legal sales agreements created

Cisco B.V. Sales ContractCisco Systems (Italy) S.r.l.

Sales Contract

• For Cisco Systems (Italy) S.r.l., Public

Sector customers, contracts must be in

local language, all other sales

agreements will be in English

• Cisco BV sales agreements for Italian

Partners will be assigned to Cisco

Systems (Italy) S.r.l. (via notice or

consent)

• Global sales agreements will

have Cisco Systems (Italy) S.r.l.

added as one of the entities from

which Global Partners are entitled

purchasing rights.


Cisco B.V. Cisco Systems Italy (S.r.l)

• New Bill-to ID (BIDs), ship-to ID

(SIDs)Transact with Cisco Systems

(Italy) S.r.l

• All orders post 04 Mar 2012 to use

migrated Bill-to/Ship-to IDs tied Cisco

Systems (Italy) S.r.l

• Customer Profiles will automatically be

updated to updated to include new

BIDs, and SIDs and to allow users to

transact with the new Bill-to/Ship-to.

• Transact with Cisco B.V.

• All Orders initiated before 04 March

2012 to use old Bill-to/Ship-to tied with

Cisco BV.

• The old BIDs will continue to be

associated with any orders initiated

before 04 March 2012.

• CID/account numbers will remain

unchanged


Billing: Customer XYZ

Via Torri Bianche, Vimercate, 12345 Italy Shipping: CISCO SYSTEMS (ITALY) S.R.L.

Sede legale in Milano (MI) –

Viale Luigi Majno, 17 – cap 20129

Customer user clicks “Billing” link to view or select another BID.

User can only use one BID from available list of BIDS below.

Cisco Ordering Tool


Q. Will Global distributors be required to purchase from Cisco Systems (Italy) S.r.l?

• A. All products and services shipped into Italy require an Italy Bill-to ID (BID) and purchased from the local entity [Cisco Systems (Italy) S.r.l.]. Stand alone services may be purchased outside of Italy.

Q. How long will old BIDs be valid?

• A. The old BIDs will remain valid to track the orders placed on that BID. New orders cannot be placed on soft inactivated BIDs.


Bill-to-IDBill-to

LocationShip-to Location Inclusion/Exclusion

Cisco Italy

S.r.lItaly Italy

Allowed, order passes auto-

booking

Cisco Italy

S.r.lItaly

Rest of the world ,

with exception of the

below

countries/regions


booking

Cisco Italy

S.r.lAnywhere Italy


booking

Cisco Italy

S.r.lItaly

UK, NL, US, US2,

CAN, JP, AU, MX

Not-allowed, order fails auto-

booking (orders to these countries

should be placed on appropriate

OU)

All other

OUs, e.g. CIL,

BV, Inc

Anywhere ItalyNot-allowed, order fails auto-

booking


• Ship-to Italy requires Italy BID

• Non-IT SID order should be placed on appropriate Cisco

Operating Unit, i.e. Cisco Inc.

Ship to ItalyCE Italy BID Order must be split

3

1

2

+ Ship to ItalyNon-CE Italy

BID

+ Ship to Non-EU+

Order Rejected. Requires IT BID

Ship to ItalyCE Italy BID + Ship to EUor Order OK

IT

1

1

2

2

3

Cisco Routed (Opt-in)

Cisco Routed (Opt-in) Partner Routed (Opt-out)

Cisco Routed (Opt-in)

+Ship to Other

Cisco Operating Unit

CE Italy BIDOrder Rejected. Must place order with correct

Cisco operating unit, i.e. Cisco Inc.4

4


Quote protection unchanged.

Un-submitted Orders will be

updated with new BID

Orders submitted prior to Go

Live - through BV

VAT appears on invoices (not on

quotes) for payment

Cisco Systems

Italy (S.r.l)

Cisco B.V.

Cisco makes best effort to honor valid

quotes

Discount quoted generally honored, though

not guaranteed

Price is committed upon final order booking

Discounts eligibility

(certifications/promotions) determined at

time of order

Change orders can be price-impacting. May

cause the pricing to be „re-approved‟

through the quoting process


In USD

In English

Use Ordering Tool , CCW or B2B, CSCC,

SMS3, or manual (fax)

Orders referenced and fulfilled by Cisco


Select Bill-to address for Cisco Systems (Italy)

S.r.l

Notifications (order acknowledgments and

order updates) generated from Cisco Systems

(Italy) S.r.l.

Cisco Systems

Italy (S.r.l)

Cisco B.V.

In USD

In English

Use Ordering Tool, CCW or B2B, CSCC,

SMS3, or manual (fax)

Orders referenced and fulfilled by Cisco

Systems International B.V.

Legal Sales Agreements with Cisco Systems

International B.V.



Partners/Customers will need to manage

invoices from both CSIBV & Cisco Italy

Remittances & invoices for orders

placed on or after 04 Mar. 2012

processed by Cisco Systems (Italy)

S.r.l.

Partners /Customers must submit

payments to Cisco company

referenced on invoice.

Invoice history remains accessible through

and after transition. Can query Invoice

Tool & Aged Account Summary by invoice

number for all Cisco companies.

Remittances and invoices through

Cisco Systems International BV

(CSIBV)



Invoices will continue to generate in the

same currency as today.

No change

No Change

VAT associated with service purchases

now apply, will appear on invoices (not

on quotes) for payment.

Invoice format with CSIBV banner and

Netherlands address

Services invoiced separately from

products. Purchase orders may

contain both Products & Services.

Freight costs: Appear as separate line

items on the invoice.


03 March 2012 04 March 2012

Cisco Systems

International B.V.

• Orders submitted to B.V.

• Invoices will be

generated from B.V.

• Orders will be fulfilled

from B.V., including

shipping, returns, &

Replacement Orders,

etc..

• B.V. orders

completing

lifecycle with

Cisco B.V.

• New Cisco

Italy orders

with Cisco

Italy

• Note the

change of

address for

Cisco on your

invoice

Cisco Systems

(Italy) S.r.l.

• Orders submitted to

Cisco Systems (Italy)

S.r.l.

• Invoices will be

generated from Cisco



For invoice payments using USD currency:

Bank Name: Bank of America – Milan

Bank Address: 2 King Edward Street,

London, EC1A 1HQ

UK

Bank account number: 600820790011

IBAN GB47BOFA16505020790011

SWIFT / BIC: BOFAGB22

Currency: USD

VAT number: IT 10978220159

Company Registration No: 10978220159

Creating a New Vendor Profile

Cisco company name and address:

Cisco Systems (Italy) S.r.l.

Sede legale in Milano (MI) –

Viale Luigi Majno, 17 – cap 20129

New Vendor Profile

• Set up Cisco Systems (Italy) S.r.l. in your procurement and accounts payable system(s)

• Vendor profiles provided to Partners‟ Account Receivable department week of 17 Jan. 2012


Invoice and Remittance Changes

The Cisco company is identified in the remit-

to area of the invoice. This also contains the

correct company address to remit payments.

Additional remittance information, including

Bank Name, bank account number, routing

information and other essential details.

Note:

a. The remittance information for Cisco

Systems (Italy) S.r.l. will be included on all

Cisco Systems (Italy) S.r.l. invoices

b. The remittance information will include

details specific for each Cisco Customer,

by currency.

Unique invoice number for the invoice.

Cisco-provided Customer Number.

Cisco-provided ship-to site location number.

The Gapless Sequential Document Number

assigned to each invoice will be printed to

the left of the Customer Number (4 above).

Invoice format changes


Product returns sent to the Netherlands

return depot.

Product returns, replacements, and

change orders to be completed by the

Cisco Company with which the order

originated.

Product trade-ins will be recycled by

Cisco authorized in-country recycler

Product returns sent to Netherlands

return depot

Cisco Systems Italy S.r.l.Cisco B.V.


Incentive Payment Claim Processing

VAT Tax claim form presented, but no

VAT Claiming allowed / necessary

On-line claim only required for payment

processing

Programs where Cisco is deemed to

receive services will attract Italian VAT

due to services being provided to an

Italian entity (Cisco Systems Italy

S.r.l.) vs. a foreign entity (CSI BV)

Hard copy invoice submission

required post claim



Incentives Eligible for VAT

• Cisco identified the following programs* as receiving services and will attract Italian VAT. Partners are responsible for VAT claims as defined by local law.

• AGP : Garde Plus

• AG MBO: Avant Garde MBO

• AG Loyalty

• VIP : Value Incentive Program

• Distribution MBO

• Big Bet

• DCAIP: Data Center Advantage Incentive Program

* List is not all-inclusive.


Global EasyPay (GEP)

• Partner can use Online Payment Notice in GEP to claim VAT

• If VAT is claimed, Partner must submit invoice to Cisco

• EU Partners see this form regardless if tax claiming is available or not

www.cisco.com/go/gep

http://www.cisco.com/go/gep



Global EasyPay (GEP)

• If Partner adds VAT to payment they will be directed to a page with instructions on how and where to send an invoice

• Payment submitted after Cisco receives invoice

www.cisco.com/go/gep

This page will not be seen if Partner did not

claim VAT/GST




• Italian partners will use a Cisco approved in-country e-scrap recycler for trade-in products.

• The RMA process will be used to identify and track trade-in equipment.

Trade-In Equipment Disposition


Operational Changes

Use the Product On-line Web

Returns (POWR) Tool to return

trade-in equipment to Cisco

Work with Cisco AM to process a

Certificate of Destruction (CoD) for

trade-in equipment (special cases

only) *

Use Product On-line Web

Returns (POWR) Tool to request

pickup by local recycler for trade-

in equipment destruction

Required for all trade-in

equipment

Work with Cisco AM to process a

Certificate of Destruction (CoD)

for trade-in equipment (special

cases only) *


* For exceptions only


Steps for Italy Trade-In Equipment

1. Login to the POWR Tool

2. Choose RMA #

3. Set Pickup Location

a) Enter Pickup Location

b) Requestor Contact

c) Pickup Contact

4. Create Package

a) Define the number of

packages (boxes or pallets)

b) Ship in one or multiple

packages

5. Schedule Pickup

http://www.cisco.com/web/ordering/cs_info/or3/o32/Return_a_Product/WebReturns/product_Online_web_returns.html


Service Contracts

Cisco BV Service ContractCisco Systems (Italy) S.r.l.

Service Contract

• Service contracts with B.V.

• No VAT applied

• Service contracts migrated to Cisco

Systems (Italy) S.r.l. *

• VAT applied

04 March 2012

BV Service

Contract

* Periodical Billing invoices (e.g. Qtrly, Monthly etc.) are issued through Cisco BV until end of recurring

invoices period completion. Renewal invoice will be issued from Cisco Systems (Italy) S.r.l.


Q. Cisco needs to provide awareness to third party financing, i.e. CPC

• A. Cisco will notify third-party financing of the new entity in Italy. There is not action required on Partners’part. Business shall remain "as usual."


November December January February March

04 Mar. 2012

12 Dec. 2011

15 Nov. 2011

16 Jan. 2012

06 Feb. 2012

06 Feb. 2012

03 Mar. 2012

Continuous Monitoring, Reporting, and Support

24 Feb., 2012

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 33© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 33

http://www.cisco.com/web/ordering/cilcs/italy.html

[email protected]




Grazie!

Grazie per la vostra

collaborazione. I migliori

auguri per il successo

continua!

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