DM 10: Setup a new agreement or review an existing one for next year

Sales Manager / Account Executive

Business Objective:

Increase efficiency definition and maintenance for contracts / agreements.

Manual process for establishing and monitoring rebates, accruals, and payouts is time consuming and error prone.

Create complex rebate programs with governance, approvals, decision support, and accounting automation

• Easy and central way to setup and maintain rebate programs

• Full visibility and transparency of rebates, accruals, and payouts

• Automated accruals and payouts processes

• Repeatable, flexible, and compliant templated processes

• Possibility to include rebate values and payouts into quoting process

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The current process for managing rebate and incentive programs is heavily manual, requiring significant human intervention. This can lead to misalignment in organizational strategies and errors in program documentation, accruals, and payouts. However, there is an opportunity to improve this process. By implementing a centralized system, organizations can create complex rebate programs, establish governance and approval workflows, and provide decision support information during program creation. This system also ensures traceability from a finance perspective. The benefits include a centralized location for maintaining rebate and incentive programs, complete transparency and visibility during setup, understanding the market impact, automation of accruals and payout generation, and the ability to create repeatable and compliant templates for future program setups.

All right, let's take a look at how to set up an incentive program in price effects.

To get started, we'll navigate to the Rebates capability and select Rebate Agreements. From there, we will create a new agreement from scratch. We will give it a name and set the start and end dates for the program. Additionally, we can select a specific customer for this agreement.

To ensure accurate payouts, we'll define calculation dates for when the payout will occur. For example, you might set the calculation date for the end of Q3 and the accrual process to begin at the start of the quarter. This ensures that the process is streamlined and efficient, allowing you to focus on delivering value to customers.

The next step is to define the conditions for the incentives, which can be done in the Items tab. Here, we have access to various options to customize the conditions based on customer specifications. For example, we'll select the Growth Percent condition type and add it to the agreement. Once added, we can configure the specific details for this condition type. In the input parameters, we will choose the products from our portfolio, specifically electrical protection and control, and set a target 5% growth with an 83% rebate for customers achieving that growth.

After saving these changes, we can review the forecasted rebate in the Calculations tab. If needed, you can adjust the percentages to see how it affects the values.

Additionally, we'll add another condition type for a fixed amount rebate, this time for UPS products. This rebate will be a fixed 5% at the end of the period. The Calculations tab provides insights into the potential impact of these rebates in the market, allowing us to review this information before submitting the program for review and approval.

One of the key benefits of Pricefx is the embedded analytics in capabilities that allow for insights into customer performance. For example, we can see if the customer has access to other programs in the system and review the performance of those programs over the past year. Additionally, we can track the year-over-year performance of the products included in this program. The best part is that we can access all of this information without leaving the current screen, making it easy to make informed decisions about pricing and incentives. Overall, leveraging analytics can help us optimize our pricing strategy and improve customer satisfaction.

Now we can review the approval workflow to ensure that our agreement meets all the necessary requirements. This helps you identify any conditions that may require additional levels of approval, allowing me to make any necessary adjustments. For example, the system may require additional approval if the forecasted rebate exceeds a certain threshold. Once satisfied with the setup, you can submit it for review and approval. The approval process can be completed directly on this screen, streamlining the process.

After approval, you can export the program into a PDF and send it to the customer for review and signature. We even have the option to integrate with DocuSign, making it easy to manage the entire process within the platform.

Overall, this makes it easy to create and manage rebate programs while ensuring compliance and customer satisfaction.

This concludes the flow for setting up a new agreement or review an existing one for next year in Rebates in Pricefx.