TPM Configuration in SAP CRM | Configuration and

process steps of accrual posting process in TPM SAP CRM

| TPM Process by Krishna
In this blog I would like to share my experiences with the configuration and process steps of accrual
posting process in CRM trade promotion management (TPM). With regards to the topics covered, I have
split this blog into two sections: 1. Accruals Configuration2. Accrual Calculation &
Posting Process 1. Accruals Configuration Customer Relationship Management -> Funds
Management -> Accruals
1.1 Define accrual reference data typesYou can define the reference data types the accrual calculation
methods use.

The standard delivery reference data type is: ERP_SV; defines ERP sales volumes as reference
data.
 TPM_PLAN; defines TPM planning data as reference data.
1.2 Define accrual methodsYou can define an accrual calculation method and optional reference data
that can be used to calculate the accrual amount.
There are 6 standard delivery accrual calculation methods: Uses Accrual Rate of ERP Sales Volume
and TPM Take Rates (ERP_SV): This method calculates accruals based on ERP rebates sales volumes
using and TPM take rates. It does not support accrual amounts in upcoming fiscal period (expense
forecast).
 Whole Amount on a Fixed Date (FIXED_DT): This accrual method accrues the amount reserved for
the fund usage on the date the accrual posting is performed (fixed date). It supports expense forecast.
 Fund-Based Amount on a Fixed Date (FUNDFIXD): This accrual method is for fund-based accruals
and accrues the entire amount of the fund on the date the accrual posting is performed (fixed date). It
supports expense forecast.
 Fund Usage Amount for Accrual Period (NB_DAYS): This accrual method spreads the amount
reserved for the fund usage equally over the number of days that it accrues. It supports expense forecast
and requires that accrual start date is chronologically before or equal to the accrual end date.
 Spread Accrual Amount Using Ref. Data (REF_DATA): This accrual method spreads the amount
reserved for the fund usage over the days that it accrues according to the reference data. It supports
expense forecast and requires that accrual start date is chronologically before or equal to the accrual end
date.
 Spread Fund-Based Amount Using Ref. Data (FUNDRDTA): This accrual method is for fund-based
accruals. It spreads the entire amount of the fund equally over the number of days that it accrues
according to the reference data. It supports expense forecast and requires that accrual start date is
chronologically before or equal to the accrual end date.
1.3 Define accrual profilesYou can define an accrual profile that references an accrual calculation
method and optional reference data.

There are 5 standard delivery accrual profiles: Accrue Whole Amount at Fixed Date (FIXED_DT):
This accrual profile accrues the amount reserved for the fund usage on a fixed date.
 Accrue Fund-Based Amount at Fixed Date (FUNDFIXD): This accrual profile is for fund-based
accruals and accrues the entire amount of the fund on the date the accrual posting is performed (fixed
date).
 Accrue Amount Equally for Accrual Dates (NB_DAYS): This accrual profile spreads the amount
reserved for the fund usage equally over the number of days that it accrues. The number of days can
span several periods.
 Accrue Using ERP Sales Volumes and TPM Take Rates (ERP_SV): This accrual profile accrues
ERP sale volumes and TPM take rates using the ERP sales volume agreement accrual rate.
 Accrue Using TPM Planning Data (TPM_PLAN): This accrual profile accrues TPM planning data.
Customer Relationship Management -> Trade Promotion Management -> Trade
Promotions -> Funds Integration

1.4 Funds IntegrationYou can make settings to integrate funds management functionality into your
trade promotions.

Under Expense Type to Accrual Profile, select the expense type for a particular promotion type. Select
the accrual date range and accrual profile to map to the expense type, by doing so you specify the
accrual calculation method for each expense type.If Accrual Profile is left blank, then there will be no
accrual for this expense type and its related trade spend. It is recommended to leave this field blank for
off-invoice type trade spends, as they only create pricing records and not rebate agreements. Therefore,
accruals are not relevant. 2. Accrual Calculation & Posting Process Below is the table of TPM
accrual posting process steps for different accrual profiles.
Accrual Profile Step Program name
1 RCRM_FM_ACL_ACCRUAL_UPLOAD_SV Sales Volume Load
ERP Sales Volume 2 RCRM_FM_ACL_ACCRUAL_RUN Accrual Calculation
Dependent 3 RCRM_FM_ACL_ACCRUAL_POSTING_FM Accrual Posting
ERP Sales Volume 1 RCRM_FM_ACL_ACCRUAL_RUN Accrual Calculation
Independent 2 RCRM_FM_ACL_ACCRUAL_POSTING_FM Accrual Posting

“Sales Volume Load” job uploads sales volumes from SAP ERP to SAP CRM. For the expense types
having an ERP sales volume dependent accrual profile such as ERP_SV, sales volume load job should
be executed before accrual calculation to transfer ERP sales volumes to CRM. The transferred sales
volumes are captured in CRM table CRMD_FM_ACL_SV and will be the input of the accrual calculation
for the related accrual profiles. “Accrual Calculation” job calculates the accruals according to the accrual
profile. After the calculation the accrual amounts are kept in accrual staging area, CRM table
CRMD_FM_ACL_ASA, and will be the input of the accrual posting. The related entries of
CRMD_FM_ACL_ASA table are cleared after the accrual posting. “Accrual Posting” job posts the
calculated accruals and creates the ‘accrue’ type fund posting documents in CRM. CRM table
CRMD_FM_FPO_HEAD holds the header information and CRM table CRMD_FM_FPO_ITEM holds the
item information of the fund postings.

Accruals are transferred to ERP accounting via middleware with Bdocs of CRM_FM_FPO type and create
ERP accrual posting documents. In the standard delivery the reference number of the ERP accounting
document is the fund posting ID of the CRM fund posting document. This number is the link between
CRM and ERP accrual processes.
TPM Trade promotion management : Technical aspect .

Naval Bhatt 11:25 AM SAP CRM tutorials, SAP CRM TPM, TPM

Standard role : SAP_CRM_UIU_TPM_PROFESSIONAL

Components : TPMOE

1. TPM Summary

o Trade Promotion Management is the process of planning, budgeting, presenting and executing
incentive programs that are established between a manufacturer and a retailer to enhance the sales of
specific products.

§ Planning: In order to meet account objectives, it is imperative to have a solid promotion plan. This plan
should be based on past history, customer history, brand/product history, corporate objectives, and good
judgment. Currently, many companies have extremely informal or non-existent processes.

§ Executing: A primary stumbling block in the execution of the account plan is accurate and timely
payment to retailers for promotion performance. Effective processes and tools are imperative to avoid
costly deduction expenses and overspending due to poor accounting.

§ Analyzing: Studies show that between 50-90% of promotions are not profitable. Many companies are
not performing any post promotion analysis to determine which promotions are profitable. Without this
analysis, the same unprofitable promotions are run over and over again.

The Goal: Significant increases in effectiveness coupled with reductions in trade promotion spending.
1. Types of Trade Promotions

o Trade Promotion Management (TPM) is the configuration and management of three types of
promotions.

o Corporate Promotions

§ Company-wide promotions of a product or a brand in which accounts can participate.

§ They are run for a specific time period and contain the objective of the promotion, suggested tactics,
and other information.

§ For example, a beverage company decides to promote a new product with the recommended tactics of
a temporary price reduction (TPR) and in-store displays.

o Discretionary Promotions

§ After a discretionary promotion has been created, it is saved as a template.

§ The promotion templates that can serve as the basis of an account promotion .

§ Other key account managers can use templates of existing promotions when establishing promotions
at their accounts.

o Account Promotions

§ Based on a corporate promotion or a discretionary promotion.

§ A plan is a group of account promotions that depicts the aggregate results of account promotions, such
as spending and volume.

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Making Settings in SAP SCM for Integration with SAP CRM

Use

You must make the following settings in SAP SCM before you can proceed with Demand Planning.
Caution: In principle, you can configure these settings to suit your requirements. However, you must
ensure that the settings in SAP SCM reflect the settings in SAP CRM, else the planning data in SAP CRM
cannot be transferred to SAP SCM. Pay particular attention that the attributes for business partners and
business partner groups in the BI system used for SAP CRM have the same name as in the BI system
used for SAP SCM.

Activities

1. Create a time buckets profile.

In the SAP Easy Access menu, choose Advanced Planning and Optimization -> Demand Planning ->
Environment -> Current Settings -> Maintain Time Buckets Profile for Demand Plng and Supply Network
Plng.

2. Maintain the storage buckets profile.

In the SAP Easy Access menu, choose Advanced Planning and Optimization -> Demand Planning ->
Environment -> Current Settings -> Periodicities for Planning Area.

3. Create and configure a master planning object structure.

Include the required attributes in a master planning object structure and create a characteristics
combination for all possible combinations of product, business partner, business partner group, and SAP
APO location. In the SAP Easy Access menu, choose Advanced Planning and Optimization -> Demand
Planning -> Environment -> Administration of Demand Planning and Supply Network Planning.

For more information, see SAP Library under SAP Supply Chain Management (SAP SCM) -> SAP
Advanced Planning and Optimization (SAP APO) -> Demand Planning -> Demand Planning Process ->
Planning Area Administration -> Planning Object Structures -> Master Planning Object Structure.

a) Create a planning area.

For more information, see SAP Library under SAP Supply Chain Management (SAP SCM) -> SAP
Advanced Planning and Optimization (SAP APO) -> Demand Planning -> Demand Planning Process ->
Planning Area Administration -> Planning Area.

b) Activate the master planning object structure.

To do this, choose Activate in the context menu for the master planning object structure.

In the planning object structure, set the indicator Relevant for DP-BOM to True if you intend to use display
pallets. BOM is used to model display pallets.
c) Create time series objects for the planning area.

To do this, choose Create Time Series Object in the context menu for the planning area.

d) Create characteristics combinations for the planning object structure.

To do this, choose Char. Combinations -> Create in the context menu for the planning object structure.

4. Define a planning book

For more information, see SAP Library under SAP Supply Chain Management (SAP SCM) -> SAP
Advanced Planning and Optimization (SAP APO) -> Demand Planning -> Demand Planning Process ->
Planning Book Design.

5. Maintain the promotion key figures.

In the SAP Easy Access menu, choose Advanced Planning and Optimization -> Demand Planning ->
Planning -> Promotion -> Settings -> Maintain Promotion Key Figures .

6. Create a forecast profile.

For more information, see SAP Library under SAP Supply Chain Management (SAP SCM) -> SAP
Advanced Planning and Optimization (SAP APO) -> Demand Planning -> Demand Planning Process ->
Creation of the Demand Forecast -> Interactive Demand Planning.

7. Assign the planning book to the user.

In the SAP Easy Access menu, choose Advanced Planning and Optimization -> Demand Planning ->
Environment -> Current Settings -> Assign User to Planning Book .

**********************

Define Settings for Funds Integration

Use

In this IMG activity, you can make settings to integrate funds management functionality into your trade
promotions. You can set the fund association level, select a fund determination profile, map the expense
type to the accrual profile, make setting for availability check, determine in which states the budget for
promotions is reserved, and map the expense type to the trade spend.

Requirements

You have completed the IMG activities for Funds Management.

Activities

1. Under TFM Integration View, choose the promotion type with which you would like to integrate funds.
2. Under Fund Association, choose the level at which to associate the fund to the trade promotion.

3. Select a fund determination profile.

The fund determination profile determines the funds that are available for association with the trade
promotion.

4. Select a date range.

The available selections here correspond to date ranges set up for the trade promotion. The selection
made here becomes a required entry when creating a trade promotion. For example, if you select Plan
here, then an entry for the plan date range is required when creating a trade promotion.

When associating a funds plan to the trade promotion, users can only select funds plans available during
the date range you select here. The trade promotion dates should be contained within the fund plan fiscal
period.

5. Under Expense Type to Accrual Profile, select the expense type for a particular promotion type.

If Accrual Profile is left blank, then there will be no accrual for this expense type and its related trade
spend. It is recommended to leave this field blank for off-invoice type trade spends, as they only create
pricing records and not rebate agreements. Therefore, accruals are not relevant.

6. Select the accrual date range and accrual profile to map to the expense type.

The accrual profile is used when generating fund usages.

Note: Although you calculate and post accruals in SAP CRM, you must maintain an account key and an
accruals / provisions key for all of the condition types that are part of your SAP ERP pricing procedure.
Since the accrual rate in the condition records that are transferred to ERP is zero, the SAP ERP accrual
calculation results will also be zero. To set the rebate agreement status to settled, you also need to carry
out a zero final settlement in SAP ERP.

7. Under System Status to AVC Profile and User Status to AVC Profile, make any appropriate settings for
the availability check (AVC).

The system status to AVC profile determines the fund usage value category for a particular system status.
This is the criteria used to determine under what category (reserved or pre-reserved) the fund usages are
generated as the status of the promotion changes.

You can select a fund usage value category. Note that you can only make one entry for each of the fund
usage value categories Pre-Reserved and Reserved for both the system status and the user status. You
could, for example, have a system status with the fund usage value category Pre-Reserved and a user
status with the fund usage value category Reserved, but not both a system and user status with the fund
usage value category Reserved.

You can also set a priority for each status. If there is a conflict between two statuses, the status with the
lowest number assigned as the priority is used for the trade promotion. To avoid inconsistencies, ensure
that you have assigned a different priority for each system and user status. If, for example, you have
maintained four system statuses and four user statuses, you could assign the numbers 1 to 8 as the
priorities.
8. Under Trade Spend to Expense Type, choose the expense type to be mapped to the trade spend.

The combination of the spend type, spend category, and spend method determine the trade spend. The
trade spend and expense type are mapped in a one-to-one relationship in order to properly generate fund
usages for the trade promotion.

9. Under Expense Type to Key Figure, select a key figure to map to the expense type.

This ensures that the planning costs entered in the planning grid are leveraged in fund usages to reserve
budget.

******************

There are some settings required for claims management integration as well .

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Data from SAP documentation

Trade Promotion Management Locate this document in the navigation structure

Technical Data

Technical Name of Business Function

CRM_TPM_1

Type of Business Function

Enterprise Business Function

Available As Of

SAP Enhancement Package 1 for SAP CRM 7.0

Technical Usage

CRM Core

Application Component

Trade Promotion Management (CRM-MKT-MPL-TPM)

Directly Dependent Business Function Requiring Activation in Addition

Not relevant

You can use this business function to acquire increased business functions in the area of trade promotion
management.
Prerequisites

You have installed the following components as of the version mentioned:

Type of Component

Component

Is Needed Only for the Following Features

Software Component

BBPCRM701

Not relevant

Technical component or business content, e.g. Portal Content

BI Content 7.05

Not relevant

Features

Trade Promotion Agreements

Trade promotion agreements have been enhanced to allow you to do the following:

Create trade promotions from within a trade promotion agreement

View analyses from SAP NetWeaver Business Warehouse (SAP NetWeaver BW)

For more information, see Trade Promotion Agreements.

Mass Approval

The mass approval process has been enhanced to allow you to do the following:

Mass approve trade promotions in the background

Mass approve trade promotions using parallel processing

View summary of changes made to trade promotions

Customize statuses to be set for mass approval

View the total key figure amounts to be mass approved

Search by promotion guideline and indirect indicator status

Download mass approval results list to a spreadsheet application

For more information, see Trade Promotion Approval and Re-Approval.

Parallel Processing
You can now use parallel processing when you mass approve, mass change, or mass copy trade
promotions. The system previously processed these trade promotions sequentially, while the system now
processes all these trade promotions simultaneously.

For more information, see Trade Promotion Approval and Re-Approval and Trade Promotion
Management.

Spend Value Overview

The spend value overview is now available as a single place to enter spend values for multiple products
and trade spends within a simple trade promotion.

For more information, see Spend Value Overview.

Sales Areas for Off-Invoice Trade Spend Checks

You can now specify, by sales area, if you allow the following to be added to trade promotions:

A check on off-invoice trade spends with dates in the past

Products with effective dates in the past when off-invoice trade spends with dates in the past exist

For more information, see Trade Spends and Dates.

Fund Usages

Fund usages have been enhanced to allow you to do the following:

Balance fund usages for a trade promotion from several places within a trade promotion

Use trade spend dates from trade promotion planning as the accrual date range for fund usages

For more information, see Fund Usages and Funds Integration.

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Trade Promotion Management Locate this document in the navigation structure

You use trade promotion management (TPM) to do the following:

Perform planning and budgeting of your trade promotions from the top down at the headquarter level or
from the bottom up at the account level

Execute your trade promotions

Manage funds management and claims management processes relating to trade promotions

Monitor the success of past and current trade promotions

Integration

You can integrate functions from the following applications with TPM:
Funds management

You can link funds to trade promotions and assign a budget during promotion planning. During the trade
promotion evaluation and analysis process, funds are planned, committed, and accrued with the purpose
of budget tracking. For more information, see Funds Integration for Trade Promotion Management.

Claims management

You can validate and settle claims, in addition to using them to create invoice claims, deduction claims
and direct payments. For more information, seeClaims in the TPM Business Scenario.

SAP NetWeaver Business Warehouse (SAP NetWeaver BW)

You can use SAP NetWeaver BW to provide a complete overview of past and current promotional
performance, which simplifies the planning process and allows quick reaction to changes in the market.

SAP ERP

You can use SAP ERP to finalize claims and to close promotional accounts upon final settlement. SAP
ERP tracks all receipts relevant for rebate processing (generated from trade promotions) and
automatically posts accruals. For more information, see Rebates in Trade Promotions.

SAP Advanced Planning and Optimization (SAP APO)

You can use demand planning with TPM to ensure adequate supply during promotional periods. For more
information, see Purchasing Process in Marketing Projects.

Prerequisites

You have completed all of the activities in Customizing for Customer Relationship Management under
Trade Promotion Management.

If you plan to use the mass copy function, you have configured the formatting mask that all copied trade
promotions must use in Customizing forCustomer Relationship Management under Marketing
Marketing Planning and Campaign Management System Landscape Define Formatting Mask for
Marketing Projects.

Features

The following features are available to help you manage your trade promotions.

Features for Planning Trade Promotions

Deals

You can generate trade promotions from deals for a predefined set of accounts for specific products. For
more information, see Using Deals to Create Trade Promotions.

Trade promotion agreements

You can use agreements to provide guidelines for trade promotions and you can link trade promotions to
agreements created for specific accounts to identify contractual obligations. For more information, see
Trade Promotion Agreements.
Volumes and trade spends planning

Volumes and trade spends planning allows you to carry out forecasting for deals, trade promotions, or
trade promotion elements. For more information, see Volumes/Trade Spends Planning.

Trade promotion guidelines

You can use this function to ensure that your trade promotions fall within guidelines based on established
rules and thresholds. For more information, see Trade Promotion Guidelines.

Features for Creating Trade Promotions

Trade promotion templates

You can create trade promotion templates as a basis for creating multiple trade promotions that have
similar attributes. For more information, see Trade Promotion Templates.

Product assignment

You can assign products, product groups, product categories and product segments to a trade promotion.
For more information, see Product Assignments.

Partner assignment

You can assign partners with functions to a trade promotion. Partner determination can be used to control
which partners can be assigned to a trade promotion. For more information, see Partner Assignment.

Conditions and rebates

You can use conditions and rebates to offer your accounts special discounts for a certain order item. For
more information, see Conditions and Rebates in Trade Promotions.

Mass copy and mass change

You can use these functions to quickly create and modify multiple trade promotions. You can use parallel
processing so that during a mass copy or mass change the system processes all trade promotions
simultaneously, rather than processing each trade promotion sequentially. For more information about
parallel processing, see Trade Promotion Approval and Re-Approval.

Causal factors

You can identify incentives that will affect trade promotion performance. For more information, see Causal
Factors for TPM.

Overlaps

You can perform an overlap check to identify potential overlaps to avoid similar or identical trade
promotions being released simultaneously. For more information, see Trade Promotion Overlaps.

To use parallel processing for mass copy and mass change, you must activate the business function
Trade Promotion Management (CRM_TPM_1).

Features for Monitoring Trade Promotions

Mass approval

You can use this function to approve many trade promotions at once.

Versions

You can view all changes that have been made to a trade promotion since it was created.

Critical changes

You can set up alerts to notify you when a trade promotion needs to be reapproved following changes
identified as critical.

For more information on these features, see Trade Promotion Approval and Re-Approval.