Vistex Chargeback

/IRM/IPALLMENU

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Definition of Chargeback

Chargeback is a claimed amount that a manufacturer pays a distributor for goods/services

sold by him according to a mutual agreement between them.

The Chargeback process would help the distributors to sell their merchandise for a lower
value and retrieve the difference between his acquisition cost and the customer sales price.
Thus he would set up an agreement with the manufacturer to determine the pricing and
settlement parameters for the products.

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Benefits of the Chargeback Application

The IP module provides distributors with tools required to administer, track and reconcile
the claims filed with the manufacturers. Efficient management of Chargeback claims has the
following benefits:

Reduces Dispute handling costs for Chargeback's.

Reduces Days-Chargeback-Outstanding.

Increases cash flow.

Reduces manual effort and number of adjustments.

Helps the senior executives to concentrate on reaching business goals rather than expend
their time on cumbersome processes.

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Chargeback Process

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Chargeback Lifecycle
Repricing
Accrual
Parking
Settlement
Reconciliation
Chargeback lifecycle is not dependent on its source document once Chargeback
agreement is created.

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Source Documents of Chargeback

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Source Documents of Chargeback

The information which is derived from these source documents is:

General information about the sale (Sales Org., Distr. Channel, Div., Company Code etc.).

All parties involved in the sales transaction (Partners).

The product pricing for the distributor (Cost price and Selling price).

Basic Material Information (Quantity, Rate, Currency, Unit).

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Chargeback creation based on Partner

Roles with proper agreements

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Chargeback creation based on Partner

role w/o agreement

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Why Partner Roles are important to

create Chargeback Document

Chargeback process will only take place with a manufacturer only if there exists a valid
agreement between the parties for at least one item in the source document.

The Chargeback document sent to a particular manufacturer would only contain those items
that belong to the sale as well as to an agreement between the manufacturer and
distributor. Slide 6.

If there is no agreement between the parties, then the question of a Chargeback does not
arise at all and thus there is no Chargeback document. Refer Slide 7

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Chargeback document will not be created for Vendor 2 and Vendor 3 as no agreement is found for
those invoice line items.

Chargeback Creation Transaction codes

(/IRM/IPSPRO Path is also shown here)

Tcode for Individual Chargeback creation : /IRM/IPCBM.

CB Mass Processing IP-Chargeback's-Mass Proc.of Sales Documents (Sales Source

Documents)
The transaction code is /IRM/IPCB22.

CB Mass Processing IP-Chargeback's-Mass Proc.of Billing Documents (Billing Source

Documents)
The transaction code is /IRM/IPCB21.

CB Mass Processing IP-Chargeback's-Mass Proc. of Claims (Claims Source Documents

created form Sales document)
The transaction code is /IRM/IPCB20.

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Chargeback Display or Change TCodes

CB Search and Process IP-Chargeback's-Claim Process

The transaction code is /IRM/IPCB31.
CB Search and Process IP-Chargeback's-Billing Process
The transaction code is /IRM/IPCB31.
CB Search and Process IP-Chargeback's-Sales Process
The transaction code is /IRM/IPCB32.
CB Search and Process IP-Chargeback's-Process
The transaction code is /IRM/IPCB33.

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Chargeback Accounting Document Display

/IRM/IPCB35

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Document flow for the accounting

document of Chargeback

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Technical Information For CB Area

TCodes of CB Reports

User Exits Function

group for CB XIPCB

/IRM/IPCB05
/IRM/IPCB41

/IRM/BADI_IPCB_ALL

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/IRM/IPCB_LIST_DISPLAY
/IRM/IPCB_MISSING_BILLING_DOCS

IP: Chargeback Customer Enhancements

XIPCB

BADI

Program Name

Different types of exits for Accrue , Settlement

depending upon various mode of selection of
data.

IP: Chargeback Customer Enhancements

BADIs for Chargeback for modifying accrue,

settlement calculations, Enhance KOMP data,
KOMK data, user fields reconcilation

High Level Overview from Contract to Chargeback Business

Process for a Pharma wholesale business process
Manufacturer
Contract Negotiation
With GPO or End
Customer

Wholesaler
Receive Contract Award
Notification (EDI 845)

End Customer
Place Order with
Wholesaler

Receive Order
Send BID Award
to Wholesaler
Ship Product and
Invoice End Customer

Receive
Chargeback

Chargeback
Reconciliation
(EDI 849)
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Chargeback Request
EDI 844

Ship Product and

Invoice End Customer

Receive Product and

Invoice

Chargeback functions : CB Creation,

Document flow and Reconciliation
Chargeback Document

Chargeback Creation

Outbound EDI 844 and inbound 849 support

Automatic and manual creation

Chargeback pricing procedure and account

determination (can be used to adjust Chargeback
amounts, accrue rebates, post to specific accounts, etc.)
View contract data in Chargeback

Create Chargeback's in batch, periodically or

immediately

Track vendors reference number

View vendor data in Chargeback

Output and/or re-submit Chargeback using EDI 844,

print, fax, email, etc.

Document flow including Chargebacks, SD documents

and contracts.

Chargeback linked to all source EDI transactions

Full change log and audit history

Combine multiple Chargeback requests into a

"collective Chargeback request" to reduce
transaction volume

Full Chargeback workbench integration (all document

display and processing can be done without leaving
workbench)

Generate Chargeback when a contract is loaded

retroactively

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Chargeback functions : CB Creation,

Document flow and Reconciliation
Chargeback Reconciliation
All Chargeback rejections, statuses and paid amounts visible on Chargeback document
Track requested and paid Chargeback amounts separately
Track rejection reasons
Customizable rejection processing including custom fields, validations and workflow

Reverse and reopen posted Chargebacks as a result of subsequent reconciliation

Web portal for manufacturers to enter Chargeback response into your SAP system.

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