TOD_Phase 1

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Business Requirement/Blueprint
SD/FICO

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: Business Requirement/Blueprint
: SAP ECC 6.0

Module

: SD/FICO

Sub Process : LP- Turn Over Discount

Country

: INDIA

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ABB GISL Ltd; 2013

REMSC Template

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Business Requirement/Blueprint
SD/FICO

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1.1 Purpose
The Blueprint Acceptance Forms ensures that the Blueprint deliverable(s) requirements
and expectations of the deliverable(s) is met, approved and accepted or conditionally
accepted. This document will be used at the end of the Blueprint phase to get a sign-off
DOCUMENT ORIGIN
CREATED
Ujjwal Diwakar

ROLE
REMSC PROJCT MANAGER

APPROVAL
COMPANY

NAME

ROLE

REMSC

Ujjwal Diwakar

REMSC Project Manager

ABB INDIA

Rajiv Mittal

EP DIVISION & SALES

CONTROLLER

ABB INDIA

Gopala Krishna.
Narasimhaiah

SAS - RECEIVABLES

DATE

SIGNATURE

1.2 BACKROUND
1. The LP Business at ABB is having a Business Scenario where Distributors(Channel
Partners) hereafter being referred as CP , is entitled to have TurnOver Discount if
they achieve some secific Sales Volumes.
2. The Distribution incentive disbursement happens to be usually in Q1 for LP
business. Before this, there are a set of discussion which takes place during
December-November of previous year with CPs to plan ahead for these payments.
3. The available Business categories with CP are:
o
Stock & Sell - distributors buy irrespective of end customer demands
o
Pull - CP generates leads. Not sharing with ABB. They will ask orders from
ABB
o
Push- ABB gets lead from end user and assigns to CP

4. The idea with this Project is to provide an elegant and Simple Tool for
extracting information for paying discounts to CP
5. Discount Policy as applicable

Standard Discount

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REMSC Template

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Business Requirement/Blueprint
SD/FICO

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Early Order Discount

Special price Approvals(SPA)

6. Target Setting Revenue in Current year achieved for each BU Will be target for
2015. However Total of all BU target cannot be lesser than minimum target limit
Specified for the city of operation. Classification of cities are METRO, TIER1 and
others.
7. Incentive policy
a. Terms and conditions for calculating Incentives
i. All incentives are settled together , On Annual basis
ii. All Incentives will be calculated on basis of revenue generated in
Previous year(e.g. 2015 incentives on basis of 2014 revenues)
iii. Incentives are inversely proportional to delayed payments made
iv. For CP, signing after May 2015, revenue is considered from date of
signing.
v. New CP appointed during year are eligible , as applicable

INCENTIVE

(STD
DISCOUNT
orders)
AlFA+NON
ALFA

SPA

Annual TOD

YES

NO

Quarterly
TOD

YES

NO

Growth
Incentives

YES

YES

Early Order
Incentives

YES

NO

RTGS ,CD,
Timely
payment
Incentive

YES

YES

Guaranteed
Margin on
Project
Orders

NO

YES

RTGS , Cd is not applicable . But Timely Payment Incentive is applicable

b. Annual TOD

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Business Requirement/Blueprint
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i. Eligibility Achievement of Current Year Revenue Target for LVP

ii. The discount is applicable on annual reveues with standard discounts
only (ALFA and NON-ALFA Products)
iii. Incentives applicable as per slab below for 2015

REVENUE 2015 ACTUAL

% OF NSP

> 3 TO 10 M INR

1.00 %

> 10 TO 20 M INR

1.25 %

> 20 TO 40 M INR

1.50 %

> 40 M INR

2.00 %

c. Quarterly TOD
i. Eligibility- Achievement of current year revenue target for LVP ,
quarterly (3 out of 4 quarters)
ii. The discount is applicable on annual revenues with standard discounts
only (ALFA and NON-ALFA Products)
iii. Incentives applicable as per slab below for 2015

Quarterly revenue 2015

% of NSP

If achieved , 3 out of 4 quarters

1.00 %

d. Growth incentive
i. Eligibility- Achievement of current year revenue target for respective
BU
ii. Applicable on Annual revenue , as per the growth achieved over the
target set for each LBU
iii. CP is encouraged to accept higher target to be eligible for higher
incentive slab
iv. Incentive is applicable as per the growth slabs given below
For BS, CP , ED

Taret 2015
(Each BU)

Growth Achieved over target 2015(%)

1-10

11-20

>20

>2 to 5 M
INR

0.25

0.75

1.25

>5 to 10 M

0.50

1.25

2.00

We reserve all rights in this document and in the information contained therein. Reproduction, use or disclosure to third parties without express authority is strictly forbidden.
ABB GISL; 2013

REMSC Template

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Date

20/01/2016
Business Requirement/Blueprint
SD/FICO

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INR
>10 M INR

1.00

2.00

3.00

For WA

Taret 2015
(Each BU)

Growth Achieved over target 2015(%)

1-10

11-20

>20

>0.5 to 1 M
INR

0.25

0.75

1.25

>1 to 2 M
INR

0.50

1.25

2.00

>2 M INR

1.00

2.00

3.00

e. Timely Payment Incentive

i. Incentive of 1.5% will be given if all the invoices which are due in the
month are paid
ii. Eligible only if the above condition is met for at least for 10 calendar
months in the year.in case of 2015, Waiver of interest while
calculating TOD, for additional period of 15 days
iii. Invoices falling due on or before 15th of the month should be
cleared on or before 15th
iv. Invoices falling due after 15th of the month to be cleared before
End of Month
f.

Multi Location Incentive

i. Eligible for CP having brach offices in locations other than base
location and each branch office should achieve revenue targets
individually
ii. Each brach office is individual entity and incentives are being paid
individually
iii. Eligible for Consecutve 2 Fiscals from year of inception
iv. Eligible for additional 4 % for revenuew generated in the branch for
the year.

8. Disbursements of incentives

a. Payment on annual basis only

b. Shall be paid to CP During Following calendar year by way of credit Note
within 15 working days from the date of

We reserve all rights in this document and in the information contained therein. Reproduction, use or disclosure to third parties without express authority is strictly forbidden.
ABB GISL; 2013

REMSC Template

Issued by department

REMSC

Date

20/01/2016
Business Requirement/Blueprint
SD/FICO

Doc. kind
Module

REMS

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i. Receipt of 100% payments against all Invoices , debit Notes raised

against CP
ii. Submission of all sales tax/excise forms
iii. Any applicable payment for delayed payments
c. Eligibility for turoner discount will be lost if
i. Outstanding is not cleared(e.g. outstanding of 2015 is not cleared
before 30/04/2016)
ii. All the forms are not submitted before the end of next calendar year
9. Assumptions

Suppose a CP "A" did 100$ last year and dis year annual revenue he generated
is 110$. Then in such case, there will a reference matrix being checked in
order to make rebate payments

CT is customer type for Channel Partner which needs to be activated by

business

Payer and sold to party customer master is going to be same. So no need of

activation at payer level separately

Sales targets are fixed with CP at the beginning of the year overall as well as
BU wis

Quarterly is overall and annual is BU wise cumulative

Table ZCOGS_GL to be refereed for business area to BU assignment

Drill down for details in expected SAP console
o
o

Summary
Revenue & Sales register

1.3 DESIGN APPROACH

A detailed CONSOLE which is manual today in excel needs to be developed via SAP
program. Few Samples are attached below

Harika
Agencies.xlsx

Electromart.xlsx

We reserve all rights in this document and in the information contained therein. Reproduction, use or disclosure to third parties without express authority is strictly forbidden.
ABB GISL; 2013

REMSC Template

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Date

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Business Requirement/Blueprint
SD/FICO

REMS

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The idea in this CONSOLE is to TAP Potential TOD discounts (rebate as in standard SAP) for
the no/amount of sales volumes generated by Distributors hereafter being referred as
CP(Channel Partner)

CONSOLE STRUCTURE
A New transaction in SAP will be developed as a part of New Console.
The T code Might be Named as YTOD. This T code will have options of entering Channel
partner Number and preferably a Date Range. Along with this there will be Two Options as
in Radio Button Options
Being Displayed as SUMMARY CONSOLE and REVENUE & SALES CONSOLE respectively.

1. SUMMARY CONSOLE
This console will possibly display Fields in following Pattern:
DISTRIBUTOR : XXXXXXX

Sales Target for 2014

Net sales for the year 2014
Alfa / Non-Alfa Revenue
With Std Discount
Growth in Percentage over
2014 Target
Annual Revenue Growth
Achived
Annual Tournover discount
%
Annual Tournover discount
amt
Growth Incentive % LBU
Level
Quarterly Incentive LVP
Level (Alfa/Non Alfa)

LP_BS

LP_CP

LP_ED

LP_EWA

Total

Amount

Amount

Amount

Amount

Amount

XXXXX
XXXXX

XXXXX
XXXXX

XXXXX
XXXXX

XXXXX
XXXXX

XXXXX
XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

We reserve all rights in this document and in the information contained therein. Reproduction, use or disclosure to third parties without express authority is strictly forbidden.
ABB GISL; 2013

REMSC Template

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REMSC
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Module

Date

20/01/2016
Business Requirement/Blueprint
SD/FICO

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Growth Incentive LBU Level

on Net Sales
Timely payment incentive
On Net Sales
Gross TOD for the year
2014
Less: penalty levied on
delayed payment(Delay
after 60 Days)
Net TOD & Uniform
Incentive Payable

REMS

Lang.

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

XXXXX

Calculations for each of these fields will done on a logic basis. That will be captured in FS
and TS respectively.
2. REVENUE & SALES CONSOLE
Customer
Assignment
Billing Document
Number
Document Type
Document Date
Profit Center
G/L
Excise Invoice No.
Plant
Item
Material
BU
LBU
Prod Description
Produ Descr As per
policy
Alfa / Non Alfa
Std Discount
Amount in local
currency
Net Revenue
Alfa/Non-Alfa with Std
Disc
Qurt Rev
In %
Document Header Text
Sales Document

SO Not Eligible

We reserve all rights in this document and in the information contained therein. Reproduction, use or disclosure to third parties without express authority is strictly forbidden.
ABB GISL; 2013

REMSC Template

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Date

20/01/2016
Business Requirement/Blueprint
SD/FICO

Doc. kind
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REMS

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Calculations for each of these fields will done on a logic basis. That will be captured in FS
and TS respectively.

1.4 TEAM STRUCTURE

BUSINESS
Rajiv Mittal rajiv.mittal@in.abb.com
Gopala Krishna. Narasimhaiah
gopala.krishna.narasimhaiah@in.abb.com
Dwarakanath Rao dwarakanath.rao@in.abb.com
Suneelkumar M suneelkumar.m@in.abb.com
Avil AL. Castelino avil.al.castelino@in.abb.com
REMSC

Ujjwal Diwakar ujjwal.diwakar@in.abb.com

Suvin Sugathen suvin.sugathen@in.abb.com
Hariharan Natarajan hariharan.natarajan@in.abb.com
Dhamodaran Palani <dhamodaran.palani@in.abb.com>

1.5 OUT OF SCOPE

Sub distribution / Sub CP

Entailing is also not formalized
Provision needs to be parked
C Form based calculations and scenarios

1.6 MASTER DATA ACTIVITIES

Target data table : Customer code, BU , Year , Overall

List of customer master for distributors
Table for discounting conditions: Matrix for TODs

1.7 DISTRIBUTION
COMPANY
ABB
ABB

NAME
SRIDHAR TK
RAJIV MITTAL

ROLE
COUNTRY CFO INDIA
EP DIVISION & SALES
CONTROLLER

ACTION
SiGn Off

INFO
X
X

ABB

GOPALA KRISHNA.
NARASIMHAIAH
PADMA V

SAS - RECEIVABLES

Sign Off

REMSC

HEAD OF REMSC

We reserve all rights in this document and in the information contained therein. Reproduction, use or disclosure to third parties without express authority is strictly forbidden.
ABB GISL; 2013

REMSC Template

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REMSC
Doc. kind
Module

20/01/2016
Business Requirement/Blueprint
SD/FICO

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NAME
NARAYANAN R
UJJWAL DIWAKAR
ARIJIT GHOSE

REMS

Lang.

Creator name

COMPANY
REMSC
REMSC
REMSC

Date

ROLE
FUNCTIONAL HEAD
ERP PROJECT MANAGER
CLUSTER LEAD

ACTION
Sign Off

INFO
X
X
X

We reserve all rights in this document and in the information contained therein. Reproduction, use or disclosure to third parties without express authority is strictly forbidden.
ABB GISL; 2013