The Complete Guide for SAP SD Vistex Solution

• 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 

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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