Vistex Contract Overview

/IRM/PCMS

Vistex Introduction

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Industry Challenges
The sheer complexity of managing and administering life sciences
contracts makes it prone to revenue leakage.
Business processes are typically managed by stand alone systems
resulting in issues of data integrity.
The large volume of transactions, especially with managed care
organizations overwhelms stand alone and departmental systems.
Establishing a full audit trail from initiation to payment to support
accounting and compliance efforts is an absolute necessity and no
longer a luxury.
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Benefits of Vistex Solution

Introduce efficiencies in management and administration of complex
contracts and settlements.
Reduce erroneous payouts.
Ensure full compliance with regulation and periodic audits.
Automate claims and payouts reducing administrative costs.
Improve your profitability and competitive advantage.
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Integrated Contract Life-Cycle Management

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Contract Development and

Administration
Using rule-based concepts in conjunction with standard pricing techniques,
Vistex software simplifies the process for developing and managing
contracts.
The solution enables rules to be defined to filter member eligibility on
contracts, along with supported pricing programs and performance rebate
types.
Standard contract templates are available to make contract development
efficient, fast, and easy. And you can manage all types of rebates from
simple market share or growth measurements to elaborate, matrix-style
conditions as well as handle fixed or tiered pricing.

You can also capture data for contract analysis, provide enterprise pricing
capabilities, and communicate in various formats, including a standardized
link to electronic data interchange (EDI) transactions for outbound bidaward notifications.
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Contract Types
Tier Contract: Pharma industries or customer segments may have a
common set of terms and conditions that are applicable to all contracts
that are created for customers in those industries or segments. A Tier
contract that contains this common set of terms and conditions. This
creates a contract that has GPO linked to it with all terms and condition.

Individual Contract: Individual Contract means the contract which is

done between Customer and the manufacture/supplier of the product, no
other party in involved in the same.

Base Contract:

Base Contract is the one which is associated to set of

customer who is member of a buying group where as Tier contract is
attached with buying groups organization. All other features of Base
Contract is same as Tier Contract.

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Contract Screen General Tab

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Contract Screen Customer Tab

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Contract Screen Products Tab

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Group Purchase Organization (GPO)

Group Purchase Organization is logical body which bring group of
customer together and involved the negotiation with vendors.
This way small customer can get benefited of negotiated price.
GPO do change membership fee from customers to avail the
benefit.

Buying Group
Buying Group is logical grouping of Related Materials/Group of
Customers which can be assign to a Contract. Buying Group is a
subset of GPO.

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Group Membership
With the group membership feature of the Vistex software, you can manage
the complex business relationships between contract organizations and
affiliated clients and plans.
The application maintains an exact copy of your customers membership list
and automatically matches it to your customer database according to
external cross-references.
Data collected from your customers files, third-party data providers, or EDI
transactions are loaded through applications that are integrated with
customer master data.

Because you establish filters, policies, and participation rules to control

contract participation, the software can automatically determine contract or
member eligibility, updating contracts without manual intervention.
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Membership/Block Maintenance Screen

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Buying Group assignment to Contract

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START

Sample Process Flow

SAP receives Supplier Notifications from Vendors

in the form of EDI 845 IDOC

SAP validates the received

data by applying various
matching logic and Business
rule. Is matching record
found?
YES

Supplier notification is created/ updated upon

successfully processing of the IDOC

Business or Contract analyst will analyze the data

and associate the Supplier Notification with
Base/Individual/Tier Contract
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No

Record captured as
Exception

Once the Supplier Notification Information is updated, a batch job

is scheduled to run, which will update all associated contracts
(Base, Tier and Individual) with member and product information

SAP validates the received

data by applying various
business rules. Is data good to
process?

YES
All associated contracts is updated with product and member
information received from the supplier

END

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No

Record captured as
Exception

Sample Exception Processing Flow

START

Get the list of records captured as Exception

Business or Contract analyst will analyze the data

Business is fine with

the exception and want
to process the data ?

No

Yes
Process the data manually by clicking the Process Button and System
will update all the contracts accorondingly
System will process the Exception automatically in case Same Contract,
Same Product with Same Exception occurs next time.
END
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Delete or ignore the data

by marking it Processed

Contract Activation
Contract Activation is standard Vistex process which will move all the
active records on a particular date from staging tables to active
tables.
History and Future records will not be moved.

Contract should be marked as Priced to move to active area.

Contract should be Released to move to active area.
Batch job is scheduled to run the activation at required frequency.

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Contract Best Price Logic

We can have multiple Group / Individual / Tier Contract in contracts
master data for a given Customer and Material combination on a given
pricing date.
Customer should always be charged with the best/lowest available
price among all the available contracts.
Logic to determine the best possible price to the customer is called
the BEST PRICE LOGIC.

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Contract Best Price Logic

Check Contract with all the buying group associated for the customer
Exclude Contract based on various blocks
Check the customer validity dates in Tier and Individual Contract
Check the Material with validity dates exist in the contracts selected
in above steps
Eliminate contracts where customers are excluded as well as
products do not have valid contract price and or sell price

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Contract Best Price Logic

Apply contract sequences and use exit flag till contract price found

In case we do not find any Exit flag then consider all contracts that
are captured so far
Contract have both contract price & sell price available, then sell
price will be used.
Marks ups/downs are applied to contract price i.e Vendor,
Dropship, Contract Override etc
Select best contract price (Lowest Price) among various contracts

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Contract Data Upload

There are 3 different ways to upload contract information to SAP
Vistex system, which are as follows:
Manual Upload via Tcode /IRM/PCMS
File Upload
Inbound Contract Update (EDI 845) Upload

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Manual File Upload

The SAP Vistex system have the capability to Create/Edit/Delete the
contract manually.
Transaction code (/IRM/PCMS) to trigger contract creation.
Once the transaction code is entered a selection screen appears. User
needs to select the create button (F5), and then select the type of the
contract and provide all other details

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File Upload
The SAP Vistex system have the capability to upload the Excel or text
files provided by External or Internal Parties.

Custom Transaction code can be used.

Separate Batch jobs can be scheduled to upload external and internal
party files.
Every file has a specific format in which it can be created and uploaded

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Inbound Contract Create/Update (EDI 845)

Majority of the Supplier Notifications (EDI 845) received from the

manufactures are through EDI. There are several steps in Vistex to identify
these supplier notifications and create/change these notifications.
Supplier notification is/are created/updated upon successfully processing of
the IDOC.
Business or Contract analyst will analyze the data and associate the Supplier
Notification with Base/Individual/Tier Contract.

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Common T-Codes, Tables & BADI

T-Codes
/irm/pcms
To Add/Edit/Display Contract
/irm/pcsgmblk To Add/Edi/Display Membership and Block
/irm/pcactv
To Activate a contract
/irm/pcmdactv To activate a membership and Block
Tables
/irm/pcshdr Header Table
/irm/pcscus Detail Table for customer information in contract
/irm/pcsprd Detail Table for product information in contract
/irm/pcsbgp Header Table for Membership
/irm/pcsbgc Detail Table for Membership
/irm/pcsblk Detail Table for Blocks
BADI
/IRM/BADI_PC_ALL
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