📽️ Check out a video demonstration for this use case, here.
Use Case Situation Description
In this use case, we are looking at how businesses can use rebates to incentivize growth or sustain business at targeted accounts using Pricefx. For this, sales and business teams need to be able to monitor progress on sales versus the rebate objective throughout the rebate period. This way you can remind the customer of progress toward attaining the rebate payment and maintains targeted business levels while helping you understand the likelihood of making the rebate payout at the end of the rebate period.
Destination image
Volume tier rebate
Prescriptive Design Requirements
As a [Pricing Manager/Sales Rep], I want to have visibility on the progress of sales versus the rebate objective throughout the rebate period agreements, so I can:
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Incentivize customers to achieve the set targets where needed
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Understand the likelihood of making the rebate payout at the end of the rebate period
The overall design requirements are summarized in these articles:
Functional and Non-functional Requirements
For this use case, the functional requirements are:
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I want to be able to create rebate agreements in Pricefx in line with the available rebate types that are part of Pricefx. Also Pricefx should support the accrual process and the payout process.
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When I’m working on my rebate agreement, I want to have inline analytics to view the historical sales of the customer or customer group I’m working on
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When I’m working on my rebate agreement, I want to have calculated metrics in the calculation result of the rebate agreement that show me the historical sales and when present, the forecasted sales.
Non-functional requirements
N/A
User Stories
This is a list of epics and user stories that make up this use case.
Data Requirements
The following tables can be either manually loaded in Pricefx via Pricefx Excel Client or can be automatically integrated using CSV files in a Pricefx dedicated SFTP folder:
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Price Waterfall data (typically based in invoice line items)
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If applicable, forecast data on customer/product level
Out-of-Scope
Out-of-scope business functions and features can be configured, but are not included in the Chemical Industry Catalog.
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Any Reporting and Dashboards, other than the ones explicitly mentioned above
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Applying changes to or creating any new Rebate Agreements (this is CHEM12)
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Notifications and alerts
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API method integration
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Customer-Facing templates with calculated prices
Solution Design
he design and implementation is going to utilize the suite of Pricefx out-of-the-box features and capabilities of the Rebates module. The flow chart below illustrates the end-to-end process and the mapping of the process to the Pricefx modules.
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Input data: Input data is prescribed in the “Input Data” section below
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The Rebate Accelerators provides a solution for fast implementation of rebates. The solution includes defining and approving the rebate agreements, maintaining the rebate records and enriching the transactional data for the entire price waterfall. The package includes:
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More than 20 most common Rebate types
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Approval workflow for agreements and rebate records / payout values
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Agreement output template
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Enriching sales / transactional data in the Analytics module with the rebate values
Header inputs
The Header is where the user interface will allow the user (Sales Rep, Pricing Manager) to define the rebate agreement definitions
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Start Date – Start Date of the agreement
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End Date – End Date of the agreement
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Payout Date – Payout Date of the agreement
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Customer(s) – One or group of customers for the agreement
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Product(s) – One or group of products for the agreement
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Pay To – One specific customer to pay
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Forecast Type – Can be Rebate Forecast or Accrual Forecast
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Accrual Method – For the Accrual Forecast type
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Sales Goal Increase % - For the Accrual Forecast type
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Overall Rebate agreement calculation results
Rebate types
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Conditional rebates: Single Target Amount, Single Target Percent, Single Volume Total Amount, Single Volume Total Percent, Single Volume Per Unit, Multi Target Amount, Multi Target Percent
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Single Target Amount
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Inputs:
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Calculation results
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Growth rebates: Growth Absolute Amount, Growth Absolute Percent, Growth Percent Amount, Growth Percent Percent
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Growth Absolute Percent
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Inputs:
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Calculation results
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Incremental rebates: Single Increment Amount, Single Increment Percent, Multi Increment Amount, Multi Increment Percent
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Single Increment Amount
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Inputs:
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Calculation Results
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Incremental growth rebates: Single Increment Growth Amount, Single Increment Growth Percent
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Single Increment Growth Percent
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Inputs
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Calculation results
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Fixed rebate: Fixed Amount, Fixed Percent
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Fixed Amount
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Inputs
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Calculation results
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Stepped rebates: Stepped Amount, Stepped Percent
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Stepped Amount
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Inputs
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Calculation results
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Linear Rebates: Linear Amount, Linear Percent
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Linear Amount
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Inputs:
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Calculation results
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Workflows approval allows to define the approval process of the Rebate Agreements and Rebate Records
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Define the steps of the approval process
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Define the approvers for each step
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Define the thresholds that trigger the step
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Send the email notification to the approvers/stakeholders
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Rebate agreement example
Rebate record example
