A Chargeback is an amount claimed by a distributor from a manufacturer or vendor for the difference between their initial acquisition price and the actual agreed upon price for products/services sold to a specific end customer or partner.
There are not much documents in the internet world regarding Vistex. In this post, the author has tried to give an overview of the Vistex Chargeback and the bird’s eye view to the common terminologies, screens, transactions and technical objects (user exits, BADIs etc). Hope this post would act as a launch pad to all interested consultants who would like to take deep dive into Vistex.
Below are the contents of the attached document:
i) Definition of Chargeback
ii) Benefits of the Chargeback Application
iii) Chargeback Process
iv) Chargeback Lifecycle
v) Source Documents of Chargeback
vi) Chargeback creation based on Partner Roles with proper agreements
vii) Chargeback creation based on Partner role w/o agreement
viii) Why Partner Roles are important to create Chargeback Document
ix) Chargeback Creation Transaction codes
x) Chargeback Display or Change TCodes
xi) Chargeback Accounting Document Display
xii) Document flow for the accounting document of Chargeback
xiii) Common T-codes/User Exits/BADIs in Chargeback
xiv) High Level Overview from Contract to Chargeback Business Process for a Pharma wholesale business process
xv) Chargeback functions : CB Creation, Document flow and Reconciliation
2. Chargeback is a claimed amount that a manufacturer pays a distributor for goods/services
sold by him according to a mutual agreement between them.
The Chargeback process would help the distributors to sell their merchandise for a lower
value and retrieve the difference between his acquisition cost and the customer sales price.
Thus he would set up an agreement with the manufacturer to determine the pricing and
settlement parameters for the products.
Definition of Chargeback
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3. The IP module provides distributors with tools required to administer, track and reconcile
the claims filed with the manufacturers. Efficient management of Chargeback claims has the
following benefits:
Reduces Dispute handling costs for Chargeback's.
Reduces Days-Chargeback-Outstanding.
Increases cash flow.
Reduces manual effort and number of adjustments.
Helps the senior executives to concentrate on reaching business goals rather than expend
their time on cumbersome processes.
Benefits of the Chargeback Application
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7. The information which is derived from these source documents is:
General information about the sale (Sales Org., Distr. Channel, Div., Company Code etc.).
All parties involved in the sales transaction (Partners).
The product pricing for the distributor (Cost price and Selling price).
Basic Material Information (Quantity, Rate, Currency, Unit).
Source Documents of Chargeback
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10. Chargeback process will only take place with a manufacturer only if there exists a valid
agreement between the parties for at least one item in the source document.
The Chargeback document sent to a particular manufacturer would only contain those items
that belong to the sale as well as to an agreement between the manufacturer and
distributor. Slide 6.
If there is no agreement between the parties, then the question of a Chargeback does not
arise at all and thus there is no Chargeback document. Refer Slide 7
Chargeback document will not be created for Vendor 2 and Vendor 3 as no agreement is found for
those invoice line items.
Why Partner Roles are important to
create Chargeback Document
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11. Tcode for Individual Chargeback creation : /IRM/IPCBM.
CB Mass Processing IP-Chargeback's-Mass Proc.of Sales Documents (Sales Source
Documents)
The transaction code is /IRM/IPCB22.
CB Mass Processing IP-Chargeback's-Mass Proc.of Billing Documents (Billing Source
Documents)
The transaction code is /IRM/IPCB21.
CB Mass Processing IP-Chargeback's-Mass Proc. of Claims (Claims Source Documents
created form Sales document)
The transaction code is /IRM/IPCB20.
Chargeback Creation Transaction codes
(/IRM/IPSPRO Path is also shown here)
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12. CB Search and Process IP-Chargeback's-Claim Process
The transaction code is /IRM/IPCB31.
CB Search and Process IP-Chargeback's-Billing Process
The transaction code is /IRM/IPCB31.
CB Search and Process IP-Chargeback's-Sales Process
The transaction code is /IRM/IPCB32.
CB Search and Process IP-Chargeback's-Process
The transaction code is /IRM/IPCB33.
Chargeback Display or Change TCodes
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14. Document flow for the accounting
document of Chargeback
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15. Technical Information For CB Area
TCodes of CB Reports
/IRM/IPCB05
/IRM/IPCB41
Program Name
/IRM/IPCB_LIST_DISPLAY
/IRM/IPCB_MISSING_BILLING_DOCS
User Exits – Function
group for CB XIPCB
XIPCB
IP: Chargeback Customer Enhancements
Different types of exits for Accrue , Settlement
depending upon various mode of selection of
data.
BADI
/IRM/BADI_IPCB_ALL
IP: Chargeback Customer Enhancements
BADIs for Chargeback for modifying accrue,
settlement calculations, Enhance KOMP data,
KOMK data, user fields reconcilation
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16. High Level Overview from Contract to Chargeback Business
Process for a Pharma wholesale business process
End Customer
Contract Negotiation
With GPO or End
Customer
Send BID Award
to Wholesaler
Receive Contract Award
Notification (EDI 845)
Receive Order
Ship Product and
Invoice End Customer
Chargeback Request
EDI 844
Ship Product and
Invoice End Customer
Manufacturer Wholesaler
Chargeback
Reconciliation
(EDI 849)
Receive
Chargeback
Place Order with
Wholesaler
Receive Product and
Invoice
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17. Chargeback functions : CB Creation,
Document flow and Reconciliation
Chargeback Creation
Outbound EDI 844 and inbound 849 support
Automatic and manual creation
Create Chargeback's in batch, periodically or
immediately
Combine multiple Chargeback requests into a
"collective Chargeback request" to reduce
transaction volume
Full Chargeback workbench integration (all document
display and processing can be done without leaving
workbench)
Generate Chargeback when a contract is loaded
retroactively
Chargeback Document
Chargeback pricing procedure and account
determination (can be used to adjust Chargeback
amounts, accrue rebates, post to specific accounts, etc.)
View contract data in Chargeback
Track vendor’s reference number
View vendor data in Chargeback
Output and/or re-submit Chargeback using EDI 844,
print, fax, email, etc.
Document flow including Chargebacks, SD documents
and contracts.
Chargeback linked to all source EDI transactions
Full change log and audit history
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18. Chargeback Reconciliation
All Chargeback rejections, statuses and paid amounts visible on Chargeback document
Track requested and paid Chargeback amounts separately
Track rejection reasons
Customizable rejection processing including custom fields, validations and workflow
Reverse and reopen posted Chargebacks as a result of subsequent reconciliation
Web portal for manufacturers to enter Chargeback response into your SAP system.
Chargeback functions : CB Creation,
Document flow and Reconciliation
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