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Setting up the Supplier Marketing Support (SMS) application

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What this document contains:

Setting up basic data

The following describes the set up procedure in the basic tables and files.

Tables/Files To do
Work with companies
(Work with companies, All applications panel)		 Activate the Supplier Marketing Support (SMS) application.
DIS control file Define the number series used for automatic numbering of SMS rebate claims.
Business partner file If you plan to use the A/R claim method, the rebate payer needs to be set up as being both a customer and supplier (type 3) or just a customer (type 1)

If you plan to use the A/P claim method, the rebate payer must be set up as a supplier (type 2) or customer and supplier (type 3).
Work with currencies Define the currency(s) in which the rebate should be issued.
Document types The system uses this table to validate the document numbers of the transactions transferred from Distribution to Financials, if the Handling code of the document type is 1 or 2.

If you use different number series for invoices and credit notes (as defined in the DIS control file), you also have to define two different document number series in this table; one document number series with the same number range as the invoices in the Number series table, and another with the same number range as the credit note in the Number series table. The document number series for invoices has to be connected to document type DMI and document number series for credit notes can, e.g., be connected to document type DMC. See About number series handling for invoice related documents for more information.
Work with transfer groups Preloaded with transfer group SM01. The Voucher type for this Transfer group (i.e. SM) must be the same in the Interface type table (see below).
Work with interface types You must define an SMT Interface type (for the SMS A/P interface) and assign the same Voucher type (i.e. SM) as that which is preloaded in the Voucher type field within Work with transfer groups.
Cost bases table When the SMS application is activated, the Valid in SMS agreem field is automatically set to YES for all cost bases codes but RET (Retail price).

This YES flag indicates that the following cost bases are valid for use when calculating the rebates for an SMS agreement:

  • Average cost for item/warehouse
  • Last purchase cost for item or item/warehouse
  • Standard cost for item or item/warehouse
  • Standard cost sales for item or item/warehouse
  • Purchase price 1-5 for the item
  • Sales discount value: This is reserved for use when claiming discounts or FOC items as discounts from your customers. All cost bases are valid for use for such a claim, but if you want to claim the discount values use this cost bases.
Work with DIS control keys Choose which keys are active for SMS agreements. The default is NO. Change the applicable to YES to be able to use them in the SMS agreements.
Work with items If you plan to use the A/R claim method you must set up a fictitious item.

If you want the rebates to be valid from certain or all of your suppliers and you plan on entering normal sales orders, you must define the item as batch or serial number controlled. This is to allow the system to know from which supplier the items were bought when you enter a sales order line. See Define SMS agreement suppliers below.
Work with signatures Add handlers that will be used on the Rebate claim header.
Work with SMS agreement types Add as many SMS agreement types as necessary. These agreement types are connected to a SMS agreement in Work with SMS agreements.
Structure types table The SMS rebate retrieval field defines how rebates are retrieved for sales order structures. This field is mandatory and must have one of the following system values:

  • 1 = Rebates are retrieved only for the parent
  • 2 = Rebates are retrieved both for the parent and the components
  • 3 = Rebates are retrieved only for the components.
Sales order type table For the normal SO type you have set up in your system, set the SMS rebates field to YES. This indicates that rebates should be retrieved from SMS agreements for this sales order type. The search for the best rebate is triggered during sales order line entry when this sales order type is used.

The following is only applicable if you want to register a claim where claim method for rebate transactions = A/R claim:

Define at least one SO order (claim) type with the following:

  • Field Invoice/credit note = Invoice
  • Field Claim order = YES (indicates that this sales order type shall be used when claiming rebate amount from rebate payers).
  • Field Document printout = YES for Invoice

The following is only applicable if you want to register a Credit claim where claim method for rebate transactions = A/R claim method:

Define at least one SO order (claim) type with the following:

  • Field Invoice/credit note = Credit note
  • Field Claim order = YES (indicates that this sales order type shall be used when claiming rebate amount from rebate payers)
  • Field Document printout = YES for Credit note

Setting up data for discount claims

The SMS application allows you to claim the discounts/FOC discounts you give your customers. The rebate calculation is done after the sales price calculation since that is where the actual discount is created and it is important that the sales price not be affected.

There are several places within the system where discounts can be created, to eventually be retrieved when sales orders and quotation are entered. These include:

  • Pricing method
  • Price list with quantity dependent limits
  • Customer contract with limit dependent pricing (either amount or quantity limit discounts)
  • Manually entered discount on an order line or an order header

If you plan on claiming discounts, the same data as described above in Setting up basic data must be set up. In addition, you must set up certain parameters, as described below, in the files where you define your discounts.

File To do
Work with sales pricing methods If the pricing method creates discounts that you want to eventually claim, set the Claimable field to YES.
Sales discount IDs If you have customer contracts with discounts and/or allow manual entry of discounts during Sales and Quotation line entry, and you plan to claim these discounts, set the Claimable field to YES.
Limit codes If you have customer contracts with limit dependent pricing and/or use sales price lists with quantity dependent limits and you plan to claim these discounts, set the Claimable field to YES.

Create SMS agreement headers

Create as many SMS agreement headers as required.

File Panel To do
Work with SMS agreements Work with SMS agreements, Agreement header Create headers with:

  • Valid from/to order and Invoice dates
  • Type of claim method (A/R or A/P). This dictates what the final processing will be in the system once the rebate has been claimed. (See Process handling in the Supplier Marketing Support (SMS) application for information.)
  • Type of agreement (Preferred or On top with or without One-off)
    Preferred A preferred agreement means that the rebate retrieved for the sales order line will be chosen from the terms for this preferred agreement, regardless if a better rebate can be found.
    On top The rebate valid for an on-top agreement is added to the rebate from any valid agreement.
    One-off A one-off agreement can be defined together with a preferred or on top agreement, but can also be stand alone. A rebate for a one-off agreement will be retrieved once per customer/item combination, (on a sales order line), that matches any detail records for the SMS agreement.

    The search for the best rebate during SO line entry is done in a specific order according to the type of agreement. (See SMS rebate search for more information.)

  • Fictitious item. This is only mandatory if you plan to use the A/R claim method. When a Claim order is created, the item for the line(s) will be the fictitious item you state here. Can also be used for statistical purposes.
  • Original cost base
  • Affect mark-up base
  • Define up to five keys that you want to use as search criteria when finding the best rebate.

Create SMS agreement headers for discount claims

If you plan on claiming discounts, create the agreement headers as described below.

Whenever a discount (that is defined as claimable) is added, changed or deleted on a sales or quotation line, the SMS rebate retrieval program is triggered. The system looks first for claim discount agreements that have the correct discount code (header). Then, it looks on agreement detail level to see if the values for any defined keys match. See (SMS) Retrieve claim discount rebates for an overview of the retrieval.

File Panel To do
Work with SMS agreements Work with SMS agreements, Agreement header Create headers with:

  • Valid from/to order and Invoice dates
  • Type of claim method (A/R or A/P). This dictates what the final processing will be in the system once the rebate has been claimed. (See Process handling in the Supplier Marketing Support (SMS) application for information).
  • Type of agreement: Must be On top.
  • Define Fictitious item. This is only mandatory if you plan to use the A/R claim method. When a claim order is created, the item for the line(s) will be the fictitious item you state here. Can also be used for statistical purposes.
  • Original cost base: Must be set to YES.
  • Affect mark-up base: Must be set to NO.

Define the search criteria: You have several alternatives – by defining information on the Header, Details and Discounts panels. You can combine the following alternatives to suit your needs or only define a discount code, which is mandatory. See Example of SMS search criteria combinations.

Header panel:

Discount – This field is mandatory when defining the search criteria. Complete this field if only one discount code should be valid and claimable for this agreement.(These discount codes come from the Work with Sales pricing methods table, Limit code table or Sales discount ID’s table). Note: If you want to define several to be valid and claimable for this agreement, you do this on the Discounts panel. See below. The system will update this Discount field with the panel value code for Multiple.

Keys – Optional. Enter up to five keys (that are valid and activated for SMS use in Work with DIS control keys).

Details panel:

  • Values for any keys that were defined on the Header panel
  • Additional keys: Order currency and Sales unit.

Discounts panel: Add several discount codes that you want to be valid and claimable for this agreement.

Define SMS agreement details

For every SMS Agreement Header, define the applicable details.

File Panel To do
Work with SMS Agreements Work with SMS agreements, Details Choose the Details option on the Work with SMS agreements panel and create details for every header with:

  • Key values for the selected keys on the header
  • Optional – Key values for the additional keys of Order currency and/or Sales unit
  • Valid from/to order and Invoice dates
  • Information for how you want to calculate the rebates (fixed cost, percentage, fixed rebate, quantity dependable rebate, i.e. you will only allow the rebate for this quantity of sold item. Note: If these details are for a Discount claim agreement, all cost bases from the Cost bases table are valid for use. But if you want to claim the discount values use SDV=Sales Discount Value).

Define several discounts for discount claims

If you want to define several discounts that are to be valid and claimable for one agreement, define the discounts on the Discounts panel (i.e. select the Discounts option on the Work with SMS agreements panel).

File Panel To do
Work with SMS agreements Work with SMS agreements, Discounts
  • Add as many discounts as necessary (choosing from the discounts defined as claimable within the Work with Sales pricing methods file, Limit codes table and Sales discount ID’s table).
  • The panel value for Multiple will be updated into the Discount field on the Header panel.

Define an exception for an SMS agreement

If you want to exclude certain customers or items from receiving any rebate/discount claim agreement, define the exception on the Exceptions panel.

File Panel To do
Work with SMS agreements Work with SMS agreements, Exceptions Select the Except option on the Work with SMS agreements panel and create an exception with:

  • Valid from/to dates
  • Exception keys for the keys that were defined on the header panel. You can select up to five exception keys.

Define SMS agreement suppliers

This is optional but should be done in the event that you buy your items from more than one supplier, and not all suppliers apply.

File Panel To do
Work with SMS agreements Work with SMS agreements, Suppliers Choose the Suppliers option on the Work with SMS Agreements panel and define the applicable suppliers. Note: If you defined a supplier on the agreement header, the applicable supplier will automatically be registered on this panel.

In order for the system to know from which supplier the items were bought when you enter a sales order line, the following restrictions apply:

  • If you plan on entering a normal sales order, the item on the sales order must be defined as batch or serial number controlled.
  • Otherwise you can enter a BtB (back to back) sales order.

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