In this article, we will go over the fundamentals of the SAP SD Vistex solution. Vistex SAP SD Vistex is used in the SAP R3 environment to handle rebates, sales commissions, bill backs, and chargebacks scenarios. It can also import billing document information from external systems in the form of claims. The IP Module is an embedded SAP R/3 add-on that identifies, computes, and settles all types of sales and distribution module incentives and paybacks.
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What is SAP SD Vistex
Vistex is a third-party program or tool fully integrated into the SAP ECC. It is an add-on for an ECC server. This means that it is a layer on the top of ECC. It’s the best choice to handle complicated calculations such as processing sales commissions, rebates, and chargebacks in ECC. It is referred to as SAP Solution Extension from SAP AG. It helps companies determine measures and reward/received incentives and rebates. SAP SD VIstex is an independent entity founded in 1999 in USA. It provides seamless integration with ECC standard master data as well as the most fascinating transactional processing aspect is that it doesn’t need any middleware such as Idocs. VIstex also supports ABAP for Custom Development objects & It has a different set of objects and tables.
SAP SD Vistex offers valuable solutions to organisations in the following industries:
- Wholesale Distribution
- Consumer and Commercial Products
- Pharmaceutical and Medical Products
- Industrial Machinery and Components
- High Tech and Electronics
- Process Manufacturing
- Retail
Why SAP SD Vistex
- Fix the major gaps and issues in your business processes
- Fast RoI that can leverage in existing SAP Application and Technology infrastructure
- Embedded solutions that fit the existing SAP environment
- An experienced, reliable and trustworthy partner , endorsed by sap
- Vistex Application fully support in SAP ABAP programming
Introduction of SAP SD Vistex
- SAP SD Vistex is a tool for third parties created through Vistex Inc, founded in 1999, and its headquarters in Chicago, USA; vitex solutions have been designed to meet specific business requirements built on various industries.
- It’s an embedded SAP Add-On; it is not an application external to ECC. It is a part of ECC itself, meaning there is no development of the system interface (ECC-Vistex). The most recent version for SAP SD Vistex has been IP.v 6.0D which is similar to ECC; it comes with an entirely different table and objects.
- It is the ideal tool to handle complex calculations such as making sales commissions, rebates and bill backs, chargebacks, and Price deals. ECC and Incentives or Paybacks (IP) Modules have been designated as a Global Solution Extension Products by SAP-certified and maintained through SAP via SAP Service Marketplace. SAP Service Marketplace since mid-2004.
- In the Incentives and Paybacks (IP) Module, the idea of an ‘order-to-cash process is now extended. A new document called the IP (Incentive and Payback) document has been introduced. The billing document does not require calculating rebates, chargebacks, or sales incentives.
- The concept encompasses all scenarios businesses are often confronted with during their sales and purchases. The following modules are provided within the module IP
SAP SD Vistex Business Scenario
Here are the below Business scenarios company is using Vistex
SAP SD Vistex IP Module
- SAP Incentive
- Sales Rebates
- Purchased Rebates
- Sales incentive / Commission
- SAP Paybacks and Chargebacks
- Chargebacks
- Billing backs
Sales incentive
Incentive programs are gaining popularity as more companies realize they can dramatically boost the
bottom line. The basic tenet of an incentive program is pretty simple – to get the desired behavior, offer the desired reward, and use it to improve your bottom line.
Research shows that sales compensation complexity is multiplying, increasing the need for compensation management. The complexity that results is a natural byproduct of a more sophisticated sales model and competitive environment. Sales incentive compensation plans are some of the most powerful tools sales management can use to direct sales people and impact productivity. When properly designed, sales compensation plans create a highly motivated sales force to deliver results. However, successful plan design alone does not guarantee success. The emergence of incentive software with advanced compensation, reporting, and modeling capabilities has provided a viable alternative to internal or homegrown systems.
In addition, incentives are increasingly being used to reward non-employees such as dealers, distributors, and contract sales representatives upon meeting specific sales and growth targets. The right software solution can help align behavior towards corporate objectives and result in significant cost savings.
Rebate
Companies have embraced customer rebates as a business strategy to improve production and increase customer satisfaction. However, the predominant method to administer these rebates has been through manual calculations and spreadsheets – a time intensive process prone to costly error. With the complexity of customer rebates growing, so is the need for rebate management. The resulting complexity is a natural outgrowth of a more sophisticated rebate model and competitive environment. When properly designed, customer rebate plans can be powerful tools for organizations striving for improved business performance. However, successful plan design alone does not guarantee success. The emergence of rebate software with advanced calculation, reporting and analyzing capabilities has provided a viable alternative to internal or homegrown systems. The right software solution can help you efficiently manage your customer rebates while maximizing your profits.
Sales Rebates
Sales Rebate are refunds or outgoing payment made to customers, channel partner and or group Purchasing organization for various reasons such as volume sales commitment, loyalty and revenue growth as agreement reached between the company and the customer or channel partner
Purchasing rebate
Purchasing rebate are incoming refunds or payment received from a manufacture, vendor or channel partner for various reasons such as volume purchasing commitment loyalty and purchasing growth as Agreed upon between the manufacturing /vendor/channel partner and Purchasing company
Chargeback
Manufacturers and suppliers frequently offer special pricing incentives to their customers to remain
competitive. To adhere to these offers, distributors must sometimes sell their product(s) the price they have paid. Contract agreements containing product pricing and approved spending programs are created to summarize the details. As a result, distributors must recover the difference between their acquisition cost and the customer sales price through the chargeback process. Some are equipped to track these claims in a timely and cost-effective manner and continue to rely on a collection of essential tools, such as spreadsheets, e-mail, faxes, and phone calls, or with inflexible legacy applications. As a result, inaccurate claim validation and lengthy turnaround time can occur.
SAP and Vistex can help organisations manage the entire chargeback process with SAP for Wholesale Distribution and the Chargeback Management Module from Vistex, a comprehensive, integrated set of solutions designed exclusively for business needs . Fully integrated and “embedded” in SAP for Wholesale Distribution, Vistex’s solution contains all the functions needed to complete the chargeback process systematically and efficiently. The software allows you to create a variety of contract agreements with multiple manufacturers and end-users, validate contract agreements, settle chargeback documents based on flexible settlement parameters, easily reconcile and resolve disputes, produce reports, and establish a complete audit trail for the entire chargeback life cycle. With SAP for Wholesale Distribution and Vistex, we can transform chargeback management into a less complex, manageable process.
Billbacks
It occurs when a manufacturer negotiation an agreement with a channel partner or directly with an end customer for special pricing or spending programs.the products are sold to the end customer through a channel partner, or the channel partner incurs expenses based on the negotiated spending And sends a payment to the channel partner
Manufacturers frequently offer special pricing incentives to their distributors to remain competitive. Contract agreements containing product pricing and approved spending programs are created to summarize the details. As a result, manufacturers often face the daunting task of processing distributor claims. Some are ill-equipped to audit these claims in a timely and cost-effective manner and continue to rely on a collection of basic tools, such as spreadsheets, e-mail, faxes, and phone calls or inflexible legacy applications. As a result, inaccurate claim validation and lengthy turnaround time can occur.
SAP and Vistex can help to manage the entire bill back process with SAP ERP, and the Incentive and Payback Module from Vistex; a comprehensive, integrated set of solutions designed exclusively for your industry. Fully integrated and “embedded” in SAP ERP, Vistex’s solution contains all the functions needed to complete the bill back process in a systematic and efficient manner.
The sap sd vistex application allows us to create a variety of contract agreements with multiple distributors and end-users, validate contract agreements, settle bill back documents based on flexible settlement parameters, easily reconcile and resolve disputes, produce reports, and establish a full audit trail for the entire bill back life cycle. With SAP ERP and Vistex, you can transform bill back management into a less complex, manageable process.
Conclusion
Vistex Solution is designed to facilitate end-to-end administration of today’s complex business critical issues .Its assist businesses in a way to efficiently and successfully manage price and rebates, incentive , loyalty and channel programs. Vistex works using SAP S4HANA Versions and will also work with the upcoming versions of SAP as well. The world is shifting towards automation and, with Vistex it’s possible to automate payment settlement or reconciliation
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Tell me more about specific use cases of SAP SD Vistex in the pharmaceutical industry.
SAP SD Vistex is a software solution that is particularly useful in the pharmaceutical industry, where complex pricing, rebates, and incentives are crucial. It streamlines the calculation, validation, and settlement of chargebacks and rebates, ensuring accurate financial transactions and compliance with contractual terms. It automates commission calculations, ensuring timely payouts and transparency into sales performance. It also aids in contract management, centralizing contract data, tracking compliance, and monitoring performance. It helps manage pricing changes, ensures accurate billing, and minimizes revenue leakage. Vistex also enables transparent tracking of healthcare professional incentives, ensuring compliance with regulations and providing audit trails for payments. It also manages royalty payments to intellectual property owners, calculating royalties based on sales revenue and tracking usage. It also handles pricing variations, manages tender submissions, and ensures competitive pricing, streamlining the tender-to-cash process. In summary, SAP SD Vistex enhances revenue management, compliance, and operational efficiency in the pharmaceutical industry, playing a pivotal role in driving success.
