Cross-Division Trade Agreements

Introduction

This document outlines the solution for trade agreements with global customers purchasing from multiple selling divisions. In such scenarios, performance-based targets (scaled rates) are defined for the overall sales encompassing all divisions.

Creating a cross-division agreement

You can create a trade agreement in 'Trade Agreement. Open' (OIS430) with a trade agreement type where the 'Cross division' check box is selected on 'Trade Agreement Type. Open' (OIS440/E).

Trade agreement transactions

You can create trade agreement transactions during invoicing or with 'Trade Agreement Calculation. Open' (OIS450) in the selling division. You must run the update options 'Rev transaction', 'Rev invalid', and 'Update rate' in (OIS450) in the division of the agreement.

Accruals

You can generate accrual proposals in each selling division in 'Trade Agr FIM Periodic Proposal. Open' (OIS455). They include the trade agreement transactions that are created from customer orders in the selling division. The 'Agreement division' (AGDI) field in 'Trade Agr FIM Periodic Proposal Ln. Open' (OIS456) indicates which division the trade agreement was created in.

Payouts

You can create payouts in 'Trade Agreement Payout. Open' (OIS445) in the division of the agreement. Each payout operation generates a single credit order for every combination of recipients and selling division. The targets for performance-based agreements (scaled rates) are defined for the total sales across all divisions. Thus, the recipient's generating value is for sales in all divisions. The payouts are based on the cumulated values per selling division. Thus, the recipient's paying amount is per division.