1. Information Driven Selling Oracle Trade Management (Channel Management) Tisha Bocian Senior Solution Consultant

2. Agenda  High Level Business Flow  Trade Management Functionality – Trade Planning – Budgets – Claims – Indirect Sales Planning  Revenue Recognition Solution  Key Takeaways

3. Verify Performance Investigate Claim Associate to Earnings Process Claim Settle Claim Approval Process Close Claim Develop Marketing Plan Market Manager Back-End OM Process Book Ship Invoice Financials Issue Checks Create Credit Memo/ or On-Account Credit Update G/L Create Budget for Campaigns Create and Execute Brand Campaign Allocate Trade Budget to Sales Hierarchy Define Budget Eligibility Rules Create Trade Promotions Account Manager Develop Trade Mktg Plan Fund Administrator Rebate/ Lump Sum $10k Accrued Trade Deal: 5% Off-Invoice 5% Accrual Buy One Get One Free Promo Order Management Offer, Free Goods, Discounts Applied 5% Accrual Posted to Checkbook and G/L View Checkbook View Orders Update Budget View Discounts C laim Lines: $10,000$1,500 Advise AR to Post Credit Discounts Posted to Checkbook Customer Remits Payment Short Pays Invoice $11,500 Deduction is Created in AR Customer Claims $10,000 Lump Sum and 5% Accrual Demand Planning Product Forecast General Ledger PRICING Orders Processed via Telesales EDI or Field Sales A Complex Process

4. Trade Management: Trade Management Definition A business process by which manufacturing companies manage their trade promotions, budgets, claims and deductions, and indirect sales Needs / Issues Industries: CPG, Consumer Goods, High Tech, Food & Beverages, Healthcare, Household Goods Solution Trade Planning – Plan, Execute, Analyze Budgeting – Plan, Monitor, Accurate Accounting Claims – Identify, Collect and Manage Claims Indirect Sales – Sales Dashboards, POS Benefits Automate sales processes. Plan & execute trade promotions w/ measurable ROI. Gain visibility into trade fund usage, liabilities, and expenses. Automate claim & deduction settlement process. Manage indirect sales data.

5. Trade Management: Trade Planning Definition Account Manager Dashboard provides all the essential customer, product and sales information for planning, executing and monitoring sales activity. Needs / Issues Sales targets need to be allocated and tracked. Target promotions need to be forecast based on historical sales. Sales people need to target their customers with specific promotions. Companies have a hard time tracking what they’re getting for promotional spend. Solution Top down bottom up sales target allocation enables the sales force to be able to set fair sales targets more quickly. Alert thresholds are rules that companies can set to alert sales people of bad sales performance. Reports which continuously track the sales by account and product. Understand and increase promotional ROI. Benefits Plan & execute trade promotions w/ measurable ROI. Increase sales force efficiency, so they can sell more. Sales people can make better decisions on their sales strategies and promotions.

14. Trade Management: Budgets Definition To support budget planning the application allows fixed or fully accrued budgets to be created and tracked at the GL level Needs / Issues Companies need to control their sales and marketing budgets Marketing pushes budgets out to sales territories where they can lose visibility Sabanes-Oxly demands better accounting of funds Solution Automated top down and bottom up budgeting Budgets can be quickly allocated to the entire sales hierarchy Integration to Oracle Financials to provide financial control over trade promotions Robust fund engines calculate and track the promotional expenses or accruals Benefits Gain visibility into trade fund usage, liabilities, and expenses. Better planning for better control on budget usage and target trade spending

21. Trade Management: Claims Definition Provides a central repository for all claims, whether they are due to promotions, shipping, pricing errors or other reasons. Provides tools to support claims research. Needs / Issues Many companies write off large $ Manual effort needed to research claims and settle Auto creation of deductions and overpayments through lockbox Settle multiple claims at once Solution Lockbox integration Subsequent receipt application Flexible rules for routing claims Reason code mapping Threshold limits for write offs Mass settlement Discoverer reports for researching Pay over earnings Claims aging view Benefits Shorten Claim Cycles Reduce costs of researching and the settlement claims Automate processes

27. Trade Management: Indirect Sales Planning Definition Indirect sales support for accrual type offers, chargeback or ship & debit promotions and special pricing requests including POS data. Needs / Issues Capturing indirect sales from distributors/resellers is manual. Difficult to track inventory at distributor or reseller site POS data often needs to be cleansed and validated manually. Consumer electronics and Semiconductor companies have huge pains here Solution Support third party accruals, chargeback or ship & debit and special pricing requests. Import POS data with integration to TCA for data checking and cleansing. Automate payments based on submitted POS data. Benefits Reduce manual steps when receiving, analyzing and paying on indirect sales data. Provide accurate data by checking completeness, mapping data and reducing duplications. Process payments automatically.

34. Revenue Flow Receive POS Data Update “Inventory Out” New “Ending Inventory” Update “Inventory In” Disti Order Ships Invoice Generates Defer Revenue Update “Inventory In” New “Ending Inventory” Call AR API Rev.Adj. API Recognize Revenue Automate Reclass (FIFO Basis)

35. Recognize Revenue Upon Sell-Thru By Utilizing Revenue Adjustment API Utilize to Trigger Reclass from Deferred to Realized via Revenue Adjustment API

36. Reporting Solution to Match Deferred Revenue with Deferred COGS Note: R12 will provide a more automated solution. Report is Generated to Support a Journal Entry to Reclass Deferred COGS

37. Key Take Aways  Trade Management is a broad product offering  Capture and monitor promotions such as special pricing requests, ship & debits, rebates and price protection  Workflow-driven approval policies  Capture and cleanse POS data  Capture Distributor inventory levels  Link liability via accrual into GL to ensure safe, conservative accounting  Automated claim & deduction management system  Utilize POS as a trigger for revenue recognition