Oracle Trade Management

(Channel Management)

Information Driven Selling

Tisha Bocian
Senior Solution Consultant
Agenda

 High Level Business Flow

 Trade Management Functionality
– Trade Planning
– Budgets
– Claims
– Indirect Sales Planning
 Revenue Recognition Solution
 Key Takeaways
A Complex Process
Develop Develop
Marketing Trade Mktg Order Orders
Plan Market
Plan Fund
Management Processed
Manager Administrator Offer, via
Free Goods,
Discounts Telesales
Create Define Budget
Eligibility PRICING Applied EDI or
Budget for General
Campaigns Rules Field Sales
Ledger
Create and Allocate Trade
Execute Brand Budget to Sales
Campaign Hierarchy

Account Buy One Back-End OM Process

Manager Get One Free Financials
Promo Book
Product Create Trade Trade Deal:
Issue Checks
Forecast Promotions Create Credit Memo/
5% Off-Invoice
5% Accrual or On-Account Credit Ship
Demand Rebate/
Planning
Update G/L
Lump Sum
$10k Accrued 5% Accrual
Invoice
Posted to
Checkbook and G/L

Advise AR Customer Claims

to Post Close Process $10,000 Lump Sum View
Credit and 5% Accrual
Claim Claim Checkbook
Approval Investigate Customer Remits Update Discounts
Claim Budget Posted to
Process Payment Checkbook
Claim Lines: Verify View
$10,000 Short Pays Orders
Settle Performance
$1,500 Invoice $11,500
Associate to View
Claim Earnings
Deduction is
Discounts
Created in AR
 Trade Management: Trade Management
Definition
A business process by which manufacturing companies manage their trade promotions,
budgets, claims and deductions, and indirect sales
Needs / Issues Solution
Industries: CPG, Consumer Goods, Trade Planning – Plan, Execute, Analyze
High Tech, Food & Beverages, Budgeting – Plan, Monitor, Accurate Accounting
Healthcare, Household Goods Claims – Identify, Collect and Manage Claims
Indirect Sales – Sales Dashboards, POS

Benefits
Automate sales processes. Plan & execute trade promotions w/ measurable ROI.
Gain visibility into trade fund usage, liabilities, and expenses.
Automate claim & deduction settlement process.
Manage indirect sales data.
 Trade Management: Trade Planning
Definition
Account Manager Dashboard provides all the essential customer, product and sales
information for planning, executing and monitoring sales activity.
Needs / Issues Solution
Sales targets need to be allocated Top down bottom up sales target allocation enables
and tracked. the sales force to be able to set fair sales targets
more quickly.
Target promotions need to be
forecast based on historical sales. Alert thresholds are rules that companies can set to
alert sales people of bad sales performance.
Sales people need to target their
customers with specific promotions.
Reports which continuously track the sales by
account and product.
Companies have a hard time tracking
what they’re getting for promotional
spend. Understand and increase promotional ROI.
Benefits
Plan & execute trade promotions w/ measurable ROI.
Increase sales force efficiency, so they can sell more.
Sales people can make better decisions on their sales strategies and promotions.
 Trade Management: Budgets
Definition
To support budget planning the application allows fixed or fully accrued budgets to be
created and tracked at the GL level
Needs / Issues Solution
Companies need to control their sales Automated top down and bottom up budgeting
and marketing budgets
Marketing pushes budgets out to Budgets can be quickly allocated to the entire sales
sales territories where they can lose hierarchy
visibility
Sabanes-Oxly demands better Integration to Oracle Financials to provide financial
accounting of funds control over trade promotions

Robust fund engines calculate and track the

promotional expenses or accruals
Benefits
Gain visibility into trade fund usage, liabilities, and expenses.
Better planning for better control on budget usage and target trade spending
 Trade Management: Claims
Definition
Provides a central repository for all claims, whether they are due to promotions, shipping,
pricing errors or other reasons. Provides tools to support claims research.
Needs / Issues Solution
Many companies write off large $ Lockbox integration
Manual effort needed to research Subsequent receipt application
claims and settle Flexible rules for routing claims
Auto creation of deductions and Reason code mapping
overpayments through lockbox Threshold limits for write offs
Settle multiple claims at once Mass settlement
Discoverer reports for researching
Pay over earnings
Claims aging view
Benefits
Shorten Claim Cycles
Reduce costs of researching and the settlement claims
Automate processes
 Trade Management: Indirect Sales
Planning
Definition
Indirect sales support for accrual type offers, chargeback or ship & debit promotions and
special pricing requests including POS data.
Needs / Issues Solution
Capturing indirect sales from
distributors/resellers is manual. Support third party accruals, chargeback or ship &
debit and special pricing requests.
Difficult to track inventory at
distributor or reseller site Import POS data with integration to TCA for data
checking and cleansing.
POS data often needs to be cleansed
and validated manually.
Automate payments based on submitted POS data.
Consumer electronics and
Semiconductor companies have huge
pains here

Benefits
Reduce manual steps when receiving, analyzing and paying on indirect sales data.
Provide accurate data by checking completeness, mapping data and reducing duplications.
Process payments automatically.
Revenue Flow
Automate
Reclass
Disti Order Invoice
(FIFO Basis)
Ships Generates
Defer Recognize
Revenue Revenue

Rev.Adj. API

Update
Call AR API
“Inventory In”
New “Ending
Update
Inventory”
“Inventory Out”
New “Ending
Inventory”

Receive POS
Data
Recognize Revenue Upon Sell-Thru By Utilizing
Revenue Adjustment API

Utilize to Trigger Reclass from Deferred to

Realized via Revenue Adjustment API
 Reporting Solution to Match Deferred
Revenue with Deferred COGS

Report is Generated to Support a Journal Entry to Reclass Deferred COGS

Note: R12 will provide a more automated solution.

Key Take Aways
 Trade Management is a broad product offering
 Capture and monitor promotions such as special
pricing requests, ship & debits, rebates and price
protection
 Workflow-driven approval policies
 Capture and cleanse POS data
 Capture Distributor inventory levels
 Link liability via accrual into GL to ensure safe,
conservative accounting
 Automated claim & deduction management system
 Utilize POS as a trigger for revenue recognition