Set Up Claims
Learning Objectives
After completing this unit, you’ll be able to:
- List the differences between Accounts Receivable and Accounts Payable systems.
- Create a claim template.
- Explain how to associate claims with tactics.
- Describe the advantages of claim tactic funds.
Accounts Receivable or Accounts Payable
Key account managers (KAM) like Gustavo work with hundreds of claim requests regularly. To facilitate claims clearance within trade promotion management (TPM), admins like Fatima integrate Consumer Goods (CG) Cloud with accounts receivable (A/R) and accounts payable (A/P) systems.
Gustavo explores the A/R and A/P processes for Northern Trail Outfitters (NTO) stores in CG Cloud. He learns that the A/R side of the financials shows the amounts that retailers like NTO stores owe to manufacturers Alpine Group. Whereas, the A/P side of the financials shows the amount that Alpine Group owes to the NTO stores.
NTO Atlanta purchased 1,000 units of Pure Choc White Raspberry Bar from Alpine Group last month. NTO Atlanta is now supposed to pay for the products. However, NTO Atlanta also hosted a promotion for Pure Choc White Raspberry Bar recently. So, in turn, Alpine Group must pay NTO Atlanta for executing the promotional tactics.
The easiest way for Alpine Group to pay for the promotion is to deduct the amount of money that NTO Atlanta owes to Alpine. So, the beverage manufacturer reduces the invoice amount, and the A/R side of financials shows the revised amount due from NTO Atlanta.
In case Alpine Group owes more money to NTO Atlanta, the A/P side of financials shows the payments due to NTO Atlanta.
Gustavo now has a good understanding of A/R and A/P systems. Follow along as he uses this knowledge to set up claims for NTO Atlanta in CG Cloud next.
Claim Templates
Why is a claim template important? Manufacturers receive thousands of claim requests from retailers each year. A template makes it easier and faster for the KAMs to create claims in CG Cloud, because all the fields are set up to capture the correct details.
Claim templates show the claim types, the payment definition for a promotional activity, and the variations in business rules for the claim types.
Having learned about the different types of claims in CG Cloud, Fatima is all set to create a claim template for NTO stores. Gustavo can then create claims in CG Cloud.
- Click
.
- Find and select Claim Templates.
- Click New.
- Provide the following details.
- Claim Template Name:
Credit Memo 01 - Short Code:
CRMEM - Claim Type: Credit Memo
- Sales Org: 0001
- Description Language 1:
Credit Memo 01 - Claim Adjustment Process Type: None
- KPI Set: Deduction
- Tactic Payout KPI Definition:
PayPaymentAmount
- Claim Template Name:
- Click Save.
After creating a claim template, Gustavo explores how claims are related to individual tactics.
Claim Tactics
A key component of a claim is the tactic to which it’s related. This information helps KAMs analyze the cost of a claim and the effectiveness of a promotion or its tactics. Each claim tactic relationship is unique.
When Gustavo created a claim template for NTO stores, he configured a key performance indicator (KPI) set and a tactic payout definition.
Next, Gustavo links tactics to individual claims, thereby creating claim tactics. He then distributes the allocated costs to the product level based on the KPI definition and KPI set that he had configured in the claim template.
Gustavo also allocates the claim tactic funds to each linked tactic. He distributes the tactic payout value of the claim tactic to the linked funds, based on the funding percentage of the supporting funds. To learn how to create a claim tactic by linking tactics to claim records, see Create Claim Tactics.
Claim Tactic Funds
Another key component of a claim is the fund to which each tactic is related. This information helps KAMs determine the budget to cover the costs of the claim. After claims are approved, they’re realized from a fund and reduce the fund’s current balance.
For each fund, the KAM configures the payout amount. They also determine whether to distribute the cost for a tactic over multiple funds.
Claim tactic funds show the tactic payout value that is inflowing from a fund. They are created when KAMs link tactics and their related funds to a claim.
Gustavo links tactics such as the price reduction of Alpine Group products to the claims raised by the NTO Atlanta store. He then opens the claim tactic record and navigates to the Claim Tactic Funds related list. Here, he creates a fund for the claim tactic. To learn how to create a claim tactic fund, see Create Claim Tactic Funds.
Keep Going
Good progress, Gustavo! He has now learned to create claim templates, claim tactics, and claim tactic funds. In the next unit, follow him as he creates, evaluates, and updates claims.