Calculate Payouts for Ship and Debit Programs (Example)

This example shows how you can use the Ship & Debit Program Aggregate using Member template to calculate, process, and validate payouts for ship and debit programs.

Required Editions

Available in: Enterprise, Unlimited, and Developer Editions that have Rebate Management enabled.

Important This example describes how you can use Rebate Management to process payouts for ship and debit programs. You can use a newer solution, Ship and Debit Process Management, to manage your end-to-end ship and debit processes. Use Ship and Debit Process Management to create robust, scalable ship and debit processes to protect your partners’ margins and react to market conditions. To learn more about Ship and Debit Process Management, see Get Started with Ship and Debit Process Management. To learn about how Rebate Management and Ship and Debit Process Management are different, review this comparison.

Ship-and-Debit Rebate Model

A ship-and-debit rebate program is a specific incentive model where the enrolled members, typically distributor accounts, receive special benefits when they sell products to a preferred ship-to customer. You can also create a rebate program that allows special rebate pricing when the member sells products to the specified ship-to customer.

Rebate Program Rules

Acme is a member of a ship-and-debit rebate program. The program offers a standard volume-based rebate and another special rebate based on certain criteria. As per an agreement, Acme receives a higher payout if it sells products to a company, Heavy Motor Operators. Acme must submit the claims for such transactions to validate the claims against the special pricing agreement. A transaction record is eligible for this rebate when the ship-to account and the program reference number on the submitted claim match the rebate program information.

The program manager:

Adds a value in the Program Reference Number field of the rebate program record.
Selects Heavy Motor Operators as the value in the Ship-To Account field of the program member record for Acme.

The program manager then defines the rebate types.

Tier 1: Offers no rebate when the transaction quantity is less than 1000 units.
Tier 2: Offers a $4 rebate per unit when the transaction quantity exceeds 1001 units.

Per the special pricing rebate, Acme gets a $6 rebate per unit when the transaction quantity exceeds 1001 units. The ship-to account and the program reference number are validated.

Transaction Journal Records

Here are sample Transaction Journal records for January 2021.

Record	Transaction Quantity	Transaction Amount	Program Reference Number	Claim Amount	Ship-To Account
1	800	$9000	N/A	$3500	Heavy Motor Operators
2	1500	$10,000	A0123ZYH	$8000	Heavy Motor Operators
3	600	$10,000	A0123ZYH	$4000	Radical Operators
4	1200	$22,000	A0123ZYH	$10,000	Heavy Motor Operators
5	1100	$12,500	V2123Z2L	$5000	Heavy Motor Operators

Data Processing Engine

The data processing engine validates the transaction journal records. The Program Reference Number and Ship-To Account values in the journals are compared with the rebate program rules. Possible outcomes are:

If the fields match for a record, data is aggregated for transaction quantity, transaction amount, and claim amount.
If the fields don’t match for a record, an error description is written back to the corresponding Transaction Journal record. The records aren’t considered for rebate payout calculations.

Records 2 and 4 are used for further processing because the Program Reference Number and Ship-To Account details match with the program setup. The data is aggregated for these records in the Rebate Member Product Aggregate object.

Records 1, 3, and 5 aren’t considered for aggregation and payout calculation. These error descriptions are written back to the Transaction Journals:

Record 1: Missing Program Reference Number
Record 3: Incorrect Ship-To Account
Record 5: Incorrect Program Reference Number

Note Admins can customize error descriptions in the data processing engine definition.

Acme receives an error file for the failed transactions. The transactions can be corrected and resubmitted for processing.

Aggregated Data

Here are sample aggregated records for January 2021.

Rebate Type	Total Transaction Quantity	Total Transaction Amount	Total Claim Amount
Volume-Based	3800	$44,500	Not applicable
Special Rebate	2700	$32,000	$18,000

These values update whenever the scheduled flow runs. The flow triggers the data processing engine definition. The aggregate values on the payout calculation date for Jan FY21 are used to update the final payout amounts in the Member Payout object.

Final Payout

Acme receives these payouts for January:

For the volume-based rebate, a payout of $15,200 ($4 per unit for 3800 units).
For the special rebate, a payout of $16,200 ($6 per unit for 2700 units).