Discover Fund Determination and the Fund Checkbook
Learning Objectives
After completing this unit, you’ll be able to:
- Explain automatic fund determination in CG Cloud.
- Describe a fund checkbook.
Fund Determination
In Salesforce Trade Promotion Management, a promotion is the time frame for promoting products to achieve sales targets. Each promotion includes different tactics, which increases sales and incurs cost. Most people think of tactics when they think about promotions—the displays, the discounts, and the special deals.
When key account managers receive a fund for a promotion, they can allocate it to the specific tactics for the promotion. They use fund auto-determination in CG Cloud to associate funds with tactics.
When key account managers like Gustavo link a fund to a tactic, they create a tactic fund. A tactic fund is an allocation of money to sponsor the cost of a tactic. Tactic funds hold key values that enable proper calculation, storage, and visibility of fund-specific metrics.
You can link funds to tactics manually or use the automated fund determination process in CG Cloud.
- If fund auto-determination is disabled, use the Tactic Funds card to manually link a fund to a tactic. For more information, see Add a Fund to a Tactic.
- If fund auto-determination is enabled, the process of assigning a fund to a tactic is automatic. Fund auto-determination provides more accurate results, reduces human effort and error, saves time, and improves the user experience.
Here’s how Gustavo uses CG Cloud to auto-determine a fund.
- Click
. - Find and select Advanced Promotions.
- Select a promotion: May Push.
- On the Promotion Detail page, click Edit.
- Select a tactic to add a fund: Price Cut.
In the Tactic Information section, notice the available fund templates in the Fund Template list. If you define the default fund template for the tactic template, it becomes the preselected value in the dropdown list.
6. If you want to change the preselected fund template, from the dropdown list, select a fund template.
- Select any fund template from the dropdown list other than the preselected one.
- If no fund template is defined for the tactic template, the default fund template of the sales org serves as the fund template.
After the fund template is set, CG Cloud determines the active funds for the tactic. You can see the valid funds on the Tactic Funds card. To learn about different kinds of funds and how to create them, see Resources.
Fund Checkbook
Overdrawing of funds occurs when a manufacturer spends more money than what is available in their account. To avoid overdrawing, manufacturers monitor and analyze their accounts carefully before they plan any promotional activity. If funds are overdrawn, the manufacturer is liable for those expenses.
Think of your bank account. If you spend more than you have available in your balance, your bank alerts you. You may receive a fine from your bank, unless you have overdraft protection, of course!
For example, after your monthly salary is deposited into your bank account, you have an account balance of US$10,000. Out of this, you spend US$1,200 on your apartment lease, US$200 on fuel, and US$100 on a satellite television subscription each month. You have a budget of US$8,500 left in your bank account after this planned spending. And you take care to stay within your stipulated budget for the rest of the month.
Situations like these demand that the finance manager constantly monitors, reviews, and approves the funds and the associated expenses. The manufacturer sets up the funds to correspond with the budget allocated for promotions within any given fiscal period.
A great way for key account managers to get an overview of all the funds for which they’re responsible is to view their Checkbook.
Finance managers want more detailed financial analysis. While they also access and review the Checkbook, to monitor and track financials they look for detailed reports, like the Promotion Analysis report.
In Salesforce Trade Promotion Management, the Checkbook is a roll-up of all funds that a key account manager is using for planning trade activities. It provides high-level information like the total budget amount, how much budget has been planned, how much is remaining to spend, and much more.
Reaching the Goal
Gustavo has explored the different types of funds available in CG Cloud and configured fund templates for NTO. He also analyzed how to determine funds and use the fund checkbook. Given his speedy progress this morning, it's looking like an early finish today for Gustavo.
Having secured the funds, Gustavo successfully launches his Empower Cherry Cola and Pure Choc White Raspberry Bar promotions. In the coming weeks, he watches his sales dashboard in pure delight.
Gustavo can’t wait to share the great news with his trusted partner, Carol. Great job with funds administration, you both!