3.3.

1+Vistex_BPD_Agent+Commission+Agreements+V5

3.3.1+Vistex_BPD_Agent+Commission+Agreements+V3

3.3.1+Vistex_BPD_Agent+Commission+Agreements+V2

3.3.1 Vistex_BPD_Agent Commission Agreements

3.3.1 Agent Commissions_BPD_Vistex Agent Commission Agreements.doc

3.3.1 Agent Commissions_BPD_Vistex Agent Commission Agreements

Epic ID TITLE

IAJPJMAB-1163 Agent Commission Agreements

THIS DOCUMENTATION APPLIES/RELATED TO

Business Scenario Name (L4): Agent Commission Agreements

Process Name (L5):

1. Create Agent Commission Agreement Request

2. Create Agent Commission Agreement

3. Accruals while raising invoices / billing documents

4. Partial Settlement of Commissions

5. Commission Correction

6. Create Cancellation

7. Modification / Renegotiation

8. Retrospective Commission Agreements

9. Credit Memo Request

10. Approval of the Credit Memo

11. Approval of the Debit Memo

12. Credit Memo

13. Debit Memo

"Team" (Owning and Impacted) Vistex – Sales & Distribution

1 Document History

1.1 Change History

Ver. Date Summary of Changes Author Other Comments

1. 15 Mar 2021 Initial Document Srinivas Alajingi

2. 27th Apr 2021 Revision1 Srinivas Alajingi Revision as per remarks provided

3. 17th May 2021 Revision2 Guna Revision as per remarks provided

4. 06th Dec 2021 Revision3 Guna Revised as per applicable R2

entities.

5. 28th Sept 2022 Revision4 Ram Potabattula Revised as per applicable R3

entities.
1.2 RASCI

RASCI Role Name(s)

R Accenture Consultant Srinivas Rao A

A Workstream Lead Ketan Thakker

S Accenture Consultant Guna G

C Workstream Lead Ketan Thakker

I IVL Sales WPL Abhay Kumar Singh

R: Responsible; A: Accountable; S: Support; C: Consulted; I: Informed

1.3 Approval Detail

Review # Date Name Role of Approver

Review 1 Ketan Thakker Workstream Lead

Review 2

Review 3

Review 4

Review 5

1.4 Other Related Documents

ID Related Document Comment

4.3.1 Sales Org Structure

4.3.2 Contract Processing

5.3.1.15

4.3.13

4.3.14
2 Process Overview

2.1 Business Process Overview

In the current practice, Agent Commissions are calculated in manually using excel and partially in SAP
and posted to SAP FI to credit customers. Agent Commissions are calculated based on Agent
Commission Agreement containing master data elements, conditions, and settlement frequency.
These are governed by Agreement Request Type, Agreement types, IP Types, Calculation Bucket
Types, Calculation Procedure respectively which are the building blocks of the design. There are
different scenarios which are handled within the Agent Commission processes which include

Simple Commission by $/MT or % of the Price

Collection based payout

Payout for supplier specific purchases

Scenarios to be part of Release 2

Commission by Agent/Customer/Material

Commission by Agent/Customer/Material/Plant/Destination Country

Approval Process:
Org Structure Consideration: Below Organizational elements will be considered for execution
of Sales Price contract Sales Organizations for GT as below:

Sales Organizations: Below are the Sales Organizations identified.

Sales Organizations: Below are the Sales Organizations identified as part of R2.
Sales Organizations: Below are the Sales Organizations identified as part of R3.

Distribution Channels:

Divisions:
Master Data Consideration
A. Customer Account group: Customer account groups are used to classify customers into business
partner functions that fit best the nature of the business transaction. Customer account groups control
the customer hierarchy containing the customer master record. It determines the role of a customer
and customer master data. When a customer account is created, it is assigned to a certain account
group. There are different customer account groups provided as a part of Standard SAP. The following
are the customer account groups to be used in IVL: Standard Account groups-

0001 - Sold-to Party

0002 - Ship-to Party (Goods recipient)

0003 - Payer

0004 - Bill-to Party

0110 - Branch w/o intercomp. billing (Intercompany Customer)

CPD - One-time cust. (int.no.assgnmt)

Custom Account group-

ZEND – End User

ZGEN – Customer General Sales

ZRPT - Related Parties Customers

A customer created with a customer account group

Sold-to party can play different roles in a transaction. He can act as the Sold-to party, Ship-to party, a
Payer or as a Bill-to party. The payment terms are determined automatically in the sales order from the
customer master data. When the customer master record with an appropriate customer account group
is created, the partner function should be assigned to it. Partner function identifies account group roles
and responsibilities within the sales transactions. A partner function refers to the rights, roles, and
responsibilities a business partner can take on in a business transaction. During Sales order creation,
partner functions such as Commission Agent, Customer Service Representative, etc. assigned to the
BP master data will be defaulted into Sales order Partner functions. The standard partner functions are:

SP Sold-to party

BP Bill-to party
PY Payer

SH Ship-to party

Apart from the above standard partner functions, there would be specific Partner functions created for
IVL. They are:

ER Employee responsible.

ZR Customer Service Representative

ZB LTVD cert recipient

ZE Technical Service Representative

SR MSDS

ZG Pricing Analyst

SE Sales employee

CR Forwarding Agent

EU End User

ES External Agent (Commission Agent)

Agent Commission Agreement Request Type

Both IVL and Agent agrees and get into Agent Commission Agreement.

Agent Commission Agreement request in simple words is a draft version of your Agent Commission Agreement which is subject to approval before posting

an actual your Agent Commission Agreement. All Agreement maintenance activities (creation and change) will be managed through an Agreement

Request, Agreement Request facilitate change log, review, and approvals. Any change to commission information and conditions in agreement will always

be routed through approval process via new Agreement Request. At a high-level agreement request will facilitate the following important functionalities:

Creation of Agent Commission Agreement Request with reference to Agent and Material for any of the following commission scenario.

We will maintain commission conditions (ZCM1, ZCM2, and ZCM3) in Sale Price Agreement. Which will be determined in sales order to calculate FOB and

delta.

Below is an example of Sales Price Agreement illustration. Agreement Types, Categories, and
description. These are examples and not exhaustive

Sales Price Agreement Condition Type Category Description

Commission ZC01 Commissions Agent Commission

Agent Commission Agreement Request

To start with user would initially define a Agent Commission Agreement Requests and within that capture each commission specific eligibility, commission

rates, exclusions and etc. Each Agreement Request will then be routed through an approval process before creating Agent Commission Agreement. The

relationship between agreement request to agreement is many to one. Each agreement request is tied to an Agreement Type. These Agreements Request

maintenance facilitates mass upload from MS Excel.

When creating an Agreement request, it is necessary to choose the request type. A single Agreement Request type is used.

In case of spot sales, we can copy existing agent commission agreement to create new agent commission agreement instead of creating it from scratch.

Agreement Request Type Description

ZAC1 Agent Commission

The following components are part of Agent Commission Agreement request based maintenance Price
Sheet

Price maintenance with respect to a key combination (like a. Agent/ Material etc.) is referred as Price Sheet. Technically Price Sheet is unique combination

of Condition Type, Condition Table part of an access sequence. Price Sheets are configurable objects. Sheets here are mapped to a Agent Commission

Agreement Request.

Condition Type Category Description

ZCE1 Eligibility Eligibility - Agent

ZCE1 Eligibility Eligibility - Agent at Sales Area Level

ZCM1 Commission Payout Commission-Material/SO Level

ZCM1 Commission Payout Commission-Cust/Material level

ZCM1 Commission Payout Commission-Cust/Mat/Plant/Dest.Country

ZCM1 Commission Payout Commission-Material Group level

ZCM2 Collection Based Commission-Material/SO (Scales)

ZCM3 Commission Payout Commission-Agent/SO Level

ZCM3 Commission Payout Commission-Facilitating Supplier

ZEX4 Commission Exclusion Exclusion Material/Plant

Approval process: The life cycle of the Agreement process starts with the creation of a Agreement Request. The user enters all the necessary information

in the Agreement Request. Once the Agreement Request is complete and accurate, it is routed for review and approval. The Agreement Request may be

approved or rejected. If the Agreement Request is approved, an Agreement is created. If the Agreement Request is rejected, it is routed back to the

originator. The originator may choose to cancel the request or modify it and resubmit it. Once the Request is approved, the Request is posted. The Post

action creates the actual Agreement or applies the changes to be made to the Agreement. The User enters the terms and conditions for the Agreement in

the Agreement Request. The terms and conditions include identifying the Eligible Agent, Commission and Exclusion rules for the Agreement. When the

Agreement is being created, the terms and conditions are copied from the Agreement Request to the Agreement. Agreement: Agreements in Vistex are

master data to control the claims computation process. Agreements hold the eligibility rules, exclusion rules, Commission rules, payout rules, settlement

parameters etc. These Agreements can either be created directly or routed through an agreement request. Once an agreement request is posted a

corresponding agreement is created. Going forward, any changes to the posted agreement need to be routed through an agreement request. Each of

these agreements request will have approval process.

Agreement Type Description

ZAC1 Agent Commission

SO Output: Commission Note for Agent will be issued with details during Sales Order processing.

IP Type: IP type will be configured to assign and determine condition search profile for Agent Commissions. Condition Search Profile mechanism is used

to determine Valid Agreement and Calculation Bucket to process billing document header and IP item criteria will be configured to determine the

Calculation Buckets relevant for Agent Commissions.

Calculation Bucket A Calculation bucket document is a Vistex document updated upon processing source documents like billing documents and can

determine an active agreement to applied to the item in source document. A Calculation bucket document has its own lifecycle that is linked to but

independent of its source document. The information derived from these source documents includes the following:

Header and Item level data such as Agent, Sales organization, site, material etc.

Partners in the source document header or item data

Material, quantity, rate, currency, unit of measure)

Item level Pricing data

The Created Calculation bucket document will,

Have unique number by the Calculation bucket type

Have calculated net commission value based on the agreement determined

Update bucket tables with data for aggregation to be used for commission, allocation etc.

Be linked to the source document by document flow

Bucket Type Description

ZAC1 Agent Commission

Calculation Procedure Description

ZAC001 Agent Commission Calculation

Calculation Run: This is an instance/copy of the tracking screen, which can be used for approval
/reviews. Once reviewed/approved settlements are posted to FI. If approvals are required before
accrual and settlement, create a Calculation Run. The approving authority can use the Calculation Run
workbench to view the calculation run and enter an authorization code. Accrual and Settlement then
can be carried out from the workbench or through mass processing. Accruals for Billing documents: An
accrual accounting document is generated for every Billing document, which in turn generates
appropriate General Ledger entries in SAP FI This accounting document will have Dr and Cr entries.
Expected Commission value to be Dr from P&L A/c and Clearing A/c to be Cr. COPA document will be
created during accruals. In case of billing document system will use the profitability segment number
from billing document.
Credit Note: Settlement creates the actual payable and transfers the data to the SAP FI module from
SD module. Accounting document will have Dr and Cr entries. Discount amount will be Dr from
Clearing A/c and Customer A/c will be Cr. Agreement Number and Agreement Type to be populated
on the Credit and Debit Memo document for further reporting requirements. Debit Note: Settlement
creates the actual payable and transfers the data to the SAP FI module from SD module. Accounting
document will have Dr and Cr entries. Discount amount will be Cr from Clearing A/c and Customer A/c
will be Dr. Agreement Number and Agreement Type to be populated on the Credit and Debit Memo
document for further reporting requirements. Commission payout Scenarios: Simple Commission
Simple Commission is one of the Agent Commission payouts where in commission to be applied for all
the invoices issued out of SO or Sales Contract. There are three different patterns here:
a) Quantity based Commission (e.g. 10 $ per MT)
b) Fixed Amount.
c) % of the Price These Commission payouts are only issued when all the invoices are cleared or need
to be wait till the time all invoices are cleared.
Collection-based Payouts There are two different commission payouts are calculated in the current
business with collection-based payout.

1.

a. Collection payout w.r.t sales contract: Where commission is paid based on the contract specific collection and payout would % of the

price.

b. Collection independent of sales contract: where in commission is paid in terms of % of the sale value subject to the payment for the

specific invoice.

Scenario1: Collection based payout scenario is based on the threshold volume, example for a given
month if 1000MT of quantity lifted then commission to be calculated based on the total quantity lifted
for that specific month and provision will only be calculated when 1000MT is achieved or as per rate
input by marketing team based on the market forecast, also accrue can also be at commission rate
which is supposed to be settle on completion of target. Example: Slabs in the agreement are as below.

Target Quantity Commission Rate

0 - 1000 0

1001-2000 1/MT

> 2001 2/MT

2.2 High Level requirements

This process is used for computing and tracking Agent commissions based on the Agreement details like Master Data, Conditions and Settlement etc.

This process covers creation of Agent Commission Agreement Request, Approval Process, Calculation of Commission, Accruals and Settlements.

2.3 Key Value Drivers for the Business Process

By deploying Agent Commission Agreement, we can do the following:

Capture all master data, conditions, and commission settlement frequency.

Ability to track performance of the Agent as on date.

Ability to re-calculate and posting commission upon any changes in Agent Commission Agreement.

Ability to calculate and post Accruals and Settlements for an individual or Multiple Agents for a specific Agent Commission agreement.

2.4 Leading Practice Inputs

User can manually create Agent Commission Agreement Request using Fiori transaction.

Also, users can upload Master Data, Conditions by arranging in an excel file using standard template provide.

On completion of sales transaction, if specific sale transaction is eligible for Commission will be processed as part of calculation bucket for booking

accruals.

Based on the settlement frequency, calculation run document to be created in combination of Agreement and Agent to create Credit or Debit Memo as per
calculations.
 Upload file:

3 Process Details
3.1 Business Sub- Process Description

Create Agent Commission Agreement Request using Agreement Request Type 'ZAC1'.

Create Agent Commission Agreement with reference to Agent Commission Agreement Request.

3.2 Creation of Agent Commission Agreement with reference Agent Commission Agreement

Request: -

Name Description Fiori App/Transaction Code, if Roles involved Roles Description Regulatory /Other Controls

relevant

Agent Commission Agreement Creation of Agent Commission Agent Commission Agreement Customer Service Representative

Request Agreement Request Request, /IRM/IPPQMAM

3.3 Sub Process Activities: -

Name Description Fiori App/Transaction Code, if Roles involved Roles Description Regulatory /Other Controls

relevant

Agent Commission Agreement Creation of Agent Commission Agent Commission Agreement Customer Service Representative

Request Agreement Request Request, /IRM/IPPQMAM

Approvals Initiate Approvals Agent Commission Agreement Customer Service Representative

Request, /IRM/IPPQMAM

Agent Commission Creation of Agent Commission Agent Commission Agreement Sales Head/ Business Head/CEO

Agreement with Release Status Request, /IRM/IPPQMAM

Execute Modification / Creation of Agent Commission Agent Commission Agreement Customer Service Representative

Renegotiation Execute Agreement Request Request, /IRM/IPPQMAM

Commission Correction

Retrospective Commission Creation of Agent Commission Agent Commission Agreement Customer Service Representative

agreements Agreement Request Request, /IRM/IPPQMAM

Cancellation of Commission Change Calculation Run Calculation Run, /IRM/IPSIPCRM Sales Head/ Business Head/CEO

Accruals while raising invoices / Create Calculation Run Calculation Run, /IRM/IPTTM Customer Service Representative

billing documents

Partial Settlement of Create Calculation Run Calculation Run, /IRM/IPSIPCRM Sales Head/ Business Head/CEO

Commissions

Commission Settlements Create Calculation Calculation Run, /IRM/IPSIPCRM Sales Head/ Business Head/CEO
Credit Memo Post Calculation Run Calculation Run, /IRM/IPSIPCRM Sales Head/ Business Head/CEO

Approval of the Credit Memo Initiate Approvals Calculation Run, /IRM/IPSIPCRM Customer Service Representative

Request

Debit Memo Post Calculation Run Calculation Run, /IRM/IPSIPCRM Sales Head/ Business Head/CEO

3.4 Process Variations: -

Process Step Process Step Description Fiori App/Transaction Code, if Roles involved Roles Description Control Point (Y/N)

relevant

Agent Commission Agreement Creation of Agent Commission Agent Commission Agreement Customer Service Representative

Request Agreement Request Request, /IRM/IPPQMAM

Approvals Initiate Approvals Agent Commission Agreement Customer Service Representative

Request, /IRM/IPPQMAM

Agent Commission Creation of Agent Commission Agent Commission Agreement Sales Head/ Business Head/CEO

Agreement with Release Status Request, /IRM/IPPQMAM

Execute Modification / Creation of Agent Commission Agent Commission Agreement Customer Service Representative

Renegotiation Execute Agreement Request Request, /IRM/IPPQMAM

Commission Correction

Retrospective Commission Creation of Agent Commission Agent Commission Agreement Customer Service Representative

agreements Agreement Request Request, /IRM/IPPQMAM

Cancellation of Commission Change Calculation Run Calculation Run, /IRM/IPSIPCRM Sales Head/ Business Head/CEO

Accruals while raising invoices / Create Calculation Run Calculation Run, /IRM/IPTTM Customer Service Representative

billing documents

Partial Settlement of Create Calculation Run Calculation Run, /IRM/IPSIPCRM Sales Head/ Business Head/CEO

Commissions

Commission Settlements Create Calculation Calculation Run, /IRM/IPSIPCRM Sales Head/ Business Head/CEO

Credit Memo Post Calculation Run Calculation Run, /IRM/IPSIPCRM Sales Head/ Business Head/CEO

Approval of the Credit Memo Initiate Approvals Calculation Run, /IRM/IPSIPCRM Customer Service Representative

Request

Debit Memo Post Calculation Run Calculation Run, /IRM/IPSIPCRM Sales Head/ Business Head/CEO

Approval of the Debit Memo Initiate Approvals Calculation Run, /IRM/IPSIPCRM Customer Service Representative

Request

4 Process Fitness & Gap Analysis

4.1 Process Fitness

Req ID Short Description Long Description Req. Type

IAJPJMAB-11003 Development of Enhancement- to set up Development of Enhancement- to default Enhancement

basic validations to ensure user does not and validate user entries as required.

input wrong selections

4.2 Gap Analysis

Country/ Region/ Release Gap Description Legal Req. (Y/N) Magnitude of Impact (L/M/) Solution Type RICEFW No. Ref. to Req. id.

Impacted

During creation of N L Development of IAJPJMAB-11003

Commission Agreement Enhancement- Where all

Request there are certain basic validations are

basic validations to ensure checked to make sure user

user does not input wrong entries are correct.

selections

5 RICEFW

5.1 Reports

RICEFW ID Report Description Complexity (/M/L) Comments Use from / ARTL (New / Ref. to Req. id.

Rework/ Rep)

5.2 Interfaces (Inbound/ Outbound)

RICEFW ID Interface Description Complexity (/M/L) Comments Use from / ARTL (New / Ref. to Req. id.

Rework/ Rep)
5.3 Conversions

N.A.

RICEFW ID Conversion Description Complexity (/M/L) Comments Use from / ARTL (New / Ref. to Req. id.

Rework/ Rep)

5.4 Enhancements

RICEFW ID Enhancement Description Complexity (/M/L) Comments Use from / ARTL (New / Ref. to Req. id.

Rework/ Rep)

Agreement Request Validations M This enhancement is required to New IAJPJMAB-11003

set up basic validations to ensure

user does not input wrong

selections

5.5 Forms

RICEFW ID Form Description Complexity (/M/L) Comments Use from / ARTL (New / Ref. to Req. id.

Rework/ Rep)

Commission Note Development of Form – To IAJPJMAB-15967

generate Commission Note for

every Sales Order

5.6 Workflows

RICEFW ID Workflow Description Complexity (/M/L) Comments Use from (New / Rework/ Rep) Ref. to Req. id.

6 Integration Points
This business process is integrated with

SD Integration & Dependency: This will mainly be used heavily for the integration of sales
documents into Vistex calculation buckets. Both conditions from Agreement and Billing documents
from S4 are used as a source for calculating commission in Vistex. In addition to this, pricing related
configuration elements like Condition Types, Condition Tables, etc. will also be created in Vistex as
part of Vistex processes for this implementation. Vistex has its own calculation procedure for Agent
Commission computation for which it is dependent on the following information:

Sales conditions types.

Billing types and Item categories

FI Integration & Dependency: This by far is the most crucial of the Integration items. Vistex does a
handshake activity into Finance during Accruals as well as Settlements. With the S4 & Vistex
architecture updates, one of the key changes is that all the posting's activity is done through Financial
document. As such, any of the Finance related postings which are initiated through Vistex as well.
Also, it is important to know and segregate the scope of work between Vistex & S4 – during the
Accrual process Vistex will be posting the accrual data into Finance documents and the rest of the
process should be done by the Finance side, however not much activity apart from reviewing regular
reporting updates are expected for Accruals. However, during the Settlement process, the Vistex
domain ends once the Settlement document (which is an SD Credit Memo) & that would generate the
Finance. document. The process which happens after that is outside of the Vistex domain and is to be
handled by the Finance team.

7 Additional Comments