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The IP module is an embedded SAP add-on that identifies, computes and settles all types of incentives and paybacks related to Logistics processes. It covers the entire spectrum of rebate and incentive processes ranging from chargebacks, billbacks, sales and incentive compensation to volume and performance rebates. In Logistics terminology, the Sales and Procurement processes are often referred to as Quote to Cash and Requisition to Payment. These processes are supported by various documents in the supply chain such as sales orders, deliveries, customer invoices, requisitions, purchase orders and vendor invoices. IP extends the footprint of these processes by introducing an additional document referred to as the IP document. In today’s hyper-competitive environment, several important functions for rebates and incentives revolve around the sales and procurement processes. It is no longer adequate to incorporate these functions in the traditional documents such as customer invoices and sales orders, etc. Attempts to support the data in these documents have met with limited success. For example, the chargeback, rebate or commission calculation incorporated in the customer invoice can lead to severe inflexibility in maintenance and retroactive changes. IP accords such functions a distinct status by launching a document that governs such data. The IP document has a life cycle of its own and its phases extend from calculation to accrual, settlement and adjustments. For example, a customer sale may result in two IP documents, one reserved for chargebacks field with the manufacturer as a claim and another reserved for commission awarded to the sales employee. This architecture provides ultimate flexibility in supporting these functions. For the billback process, IP has also introduced an additional document called the Claim Request. The Claim Request holds the data submitted by a channel partner requesting payment for special pricing arrangements and promotional programs.
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