Global Integration Services

Scenarios

PPID creation is triggered by the following scenarios:

1. Update in DBC or MPP

2. Price Protection for Regular Parts, Root Parts, or kits and bundles

3. PPID creation based on Property

Impact of the AutoApprovePriceProtection Property

DBC Changes

The following table describes the DBC changes due to the AutoApprovePriceProtection property:
 

AutoApprovePriceProtection=True	AutoApprovePriceProtection=False
PPIDs are created for DBC changes that have occurred after the previous run of Run Price Protection Analysis & Processing job irrespective of the price effective date of the DBC changes.	PPIDs are created for DBC changes that have occurred after the previous run of Price Protection Analysis and Processing job and the price effective date of the DBC change is greater than or equal to job run date (current date) + 2.
The PPIDs are automatically approved.	The PPIDs are created in Preparing status and they have to be manually approved.
For the PPIDs created the price effective date is always equal to the price effective date of the DBC change.	For the PPIDs created the price effective date is always equal to the price effective date of the DBC change.

MPP Changes

The following table describes the MPP changes due to the AutoApprovePriceProtection property:
 

AutoApprovePriceProtection=True	AutoApprovePriceProtection=False
PPIDs are created for MPP changes that have occurred after the previous run of Run Price Protection Analysis & Processing job irrespective of when the MPP is expiring.  If MPP is modified after it is expired, then PPIDs will be not created for those changes.	PPIDs are created for MPP changes that have occurred after the previous run of Price Protection Analysis and Processing job and the expiry date of the MPP is greater than job run date (current date) +2.
The PPIDs are automatically approved.	The PPIDs are created in Preparing status and they have to be manually approved.
For the PPIDs created the price effective date is always equal to greater between the following two dates:  MPP modified date Start date  The changes to the following fields are considered for PPIDs creation:   Start Date Expiry Date Approved Price Exchange rate	For the PPIDs created the price effective date is always equal to greater between the following two dates:  job run date +2 Start date   The changes to the following fields are considered for PPIDs creation:   Start Date Expiry Date Approved Price

 

Example 1: (When AutoApprovePriceProtection=False)

Let us consider a scenario where you have scheduled a nightly job prior to the midnight of GMT timings. Say, today is 2nd and you have made price change for three parts:

• Part 1 with Effective date as 3rd of the current month 
• Part 2 with Effective date as 4th of the current month
• Part 3 with Effective date as 5th of the current month

Then the nightly job automatically picks Part 2 and Part 3 changes for price protection, as they are modified on 2nd and Effective date is > = (today + 2). However, Part 1 is not considered as its Effective date is less than (today + 2).

Example 2:

Lets us consider that DBC for part1 has changed today (5th Dec) with price effective date as 15th Dec. Price has changed from $10 to $9. 
Now Price protection process is triggered on 5th Dec Night and price protection record is created with the effective date as 15th Dec 2017. (In DB its stored as 14th Dec). 
On 14th Dec 2017, Transaction Update nightly process is executed and updates all the prices in transactions to $9 (i.e MPP, Debits and Backlog orders). 

 

Impact of the RestrictCreationofPPIDsBasedOn Property

The PPIDs are created only for distributors associated with the pricing region on the updated price table. If the global price table is updated, the PPIDs are created for all distributors who are associated with the global pricing region. When an MPP is created with a distributor then the PPID is created/updated only for the distributor associated with the MPP. 

The RestrictCreationofPPIDsBasedOn property determines whether the creation of PPIDs should be restricted based on the pricing region.
 

Price Protection for Root Parts

On the Price Protection Setup page, if you select Enable Price Protection At Root for specific distributors, the system runs price protection only for root parts in their inventory.

NOTE: Only if the property EnableRootPartTransaction is set to true, the column Enable Price Protection At Root is available.

If Enable Price Protection at Root is selected for a distributor, the price protection record (PPID) is created at the root part level. Any change in the DBC of a regular part does not generate a PPID. 

NOTE: For price protection at root to execute effectively, DBC prices must not be in price tables for the linked parts.  

On the Price Protection Summary page, when you click the PPID, the Price Protection Detail page opens. On this page, in the Root column, you can view the root part for which the PPID is created. You can click the  icon to view the parts linked to the root.

For root parts, when Enable Price Protection At Root is selected, the Min of MPP or DBC is considered.

The difference in inventory amount=Difference in DBC/MPP * Total Inventory Quantity at Root

For regular parts, when Enable Price Protection At Root is not selected, the minimum value of MPP or DBC is considered as follows:

• For DBC, the Min of DBC of Part or DBC of Root
• For MPP, the Min of MPP of Part or MPP of Root

Irrespective of whether Enable Price Protection At Root is selected or not, price protection records are created for kits.

NOTE: Kits cannot contain root parts, but linked parts can derive prices from the root part they are associated with.

Reporting Inventory for Root Parts

If Enable Price Protection At Root is selected, distributors upload inventory at the root and linked parts. The inventory is then aggregated at the root part level.

The reported inventory of the root part is the sum of linked parts and the root part.  

Calculated inventory is the sum of linked parts.

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NOTE: If the inventory is reported at the part level and also at the root part level, the inventory is counted twice.

Price Protection for Kits and Bundles  

For kits, when the price (DBC/MPP) for a component part changes, the nightly thread runs and the system checks if the part is associated with a kit. If the part is associated with a kit, the nightly thread creates a price protection record. If a record exists for the same effective date, the kit DBC is updated. For kits, the new effective date is the latest date on which the new DBC for the component part was updated. 

NOTE: The nightly thread does not run on bundles. 

Example

In this example, when DBC/MPP for part P1 changes, the system searches for kits made of part P1 and identifies Kit_123. Price protection runs for Kit_123.

The following table lists the component parts of Kit_123 and the quantity of each component part defined for this kit. 
 

In the Catalog module, on the Kitting Detail page, you can view the details of Kit_123 such as the kit component parts, quantity, product family, and so on. 

On the 1^st of January 2015, the manufacturer shipped three buckets for Kit_123 to the distributor ‘Disti’.

The following table lists the eligible quantity, DBC for Kit_123, and its component parts as on 1^st January, 2015.
 

Where DBC of Kit_123=Sum of (DBC of a component part*Quantity of a component part defined for the kit)

DBC of Kit_123=5*1+4*1+3*1=12

On the 1^st of March 2015, the DBC for P1 was updated from $5 to $4.  

The following table lists the eligible quantity, DBC for Kit_123, and its component parts as on 1^st of March, 2015.
 

New DBC of Kit_123=4*1+4*1+3*1=11

Updating Kit Price for Component Part Prices in Different Currencies

When kit components parts are in different currencies, the kit price is updated as follows:

1. On the effective date, the kit component part price is converted to the base currency.
2. On the maximum effective date, the total kit price is converted to the transaction currency of the distributor.

Example 

In this example, the price of Kit_123 is recalculated when the exchange rates are modified.  

The following table lists the component parts of Kit_123, the price table definitions for the parts, current and updated exchange rates, and the dates on which the exchange rate changes. 
 

The exchange rates for Vietnamese Dong, Japanese Yens, and British Pounds change on 5th, 10th, and 15th October respectively.

The component part price is converted to the base currency (in dollars) on these dates as follows:

• On 5^th of October 2015, P1 price=100*13.00000000=1300$ 
• On 10^th of October 2015, P2 price=50*130.00000000=6500$
• On 15^th of October 2015, P3 price=120*1.30000000=156$

As the transaction currency of the distributor is in Euros, on 15^th of October, 2015 the price of Kit_123 is updated as follows:

Updated kit price=(1300+6500+156)*0.87460000=6958.3176 Euros

Where the exchange rate for Euro is 0.87460000.

PPID Detail Page

By clicking on the Price Protection ID, the distributor user can review the details (Price Protection Detail screen) and can either “Accept” the credit calculation (which sets the Price Protection process to “Accepted”) or can drill into the details of and request a review on one or more parts (which sets the Price Protection process to request marketing review and the red exclamation mark is displayed and an alert sent). 

Search Filters 

• Search by - search the price protection records using the search by filters: 
  • Product Family
  • MPN
  • Part Class
  • Reported Date
• MPN - 
  • All - search all parts
  • Impacted Parts - search parts which are impacted because of the price protection process. 

Fields/Column Description 

Column Name	Column Description
Price Effective Date	The date on which the price is effective
Status	Status of the price protection
Finalize Date	Date on which finalize action was performed on the price protection
Credit Memo Invoice Number	Credit memo invoice number that was used in the ERP for making the payments.
Credit Memo Amount	Total payment amount for that Price Protection.
Credit Memo Invoice Date	Date when the credit memo was invoiced.
	Click the icon to review part eligibility. For more information, see Distributor Review of the Price Protection.
	The red exclamation mark means a Request Review was made for that item; a black checkmark means that the user has reviewed the request and made any adjustments.
Comments	Add/View comments for any MPN. You can view all the comments and comments can be only added/viewed when the status on PPID is "Pending Inventory Update" and "Closed".
MPN	Manufacturer part number
Class	The class name of the part
Calculated QOH	Calculated QOH amount.
Reported QOH	Reported QOH amount
Reported Date	Date the distributor reported their inventory
Adjusted QOD	Net Calc QOH after taking into account In-Transit inventory
Prior Price	Price prior to the price change
Average Price	The weighted average of eligible buckets based on current cost and available quantity.
Current Price	The new effective price.
Prior Price Source	Price Price based on MPP or effective DBC.
Current Price Source	The agreement type (MPP or DBC) from the new effective price.
Delta Price	Change in price calculated as Average Price- New price
Freeze Delta Price?	Select to freeze the user entered delta price.
Credit Quantity	Eligible Quantity for Price Protection.
Freeze Credit Quantity?	Select to freeze the user entered credit quantity.
Credit Adjustment	Credit adjustment amount

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NOTE:  The “Freeze Delta Price?”, “Credit Quantity”, “Freeze Credit Quantity?”, and “Comments” fields become visible on the Price Protection Detail page when a record is in ‘Pending Inventory Update’ or ‘Closed’ status, and the user has the “UpdatePriceProtectDetailInfo” capability. It is recommended not to change the location of the Comments column. 

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Click the History Log link to view the status changes of a price protection record and modifications made to the items in the Price Protection Detail page. For more information, see Price Protection History Log. 

Header Actions

Action Name	Description
Save	Save the modified details.
Accept	Accept this entire price protection transaction.
Review	Approve the price protection details. This icon is displayed only for the records in Expire or Open status.
Return	Return the Price Protection Summary page.

 

 

PPID Summary Page

The Price Protection Summary screen displays a record for each distributor involved and displays total price impact plus past price protection reviews.

Search Filters

• Search By - search the price protection record using the following search by filters: 
  • P.P.ID# - view price protection record of the specified price protection id number
  • Distributor - view price protection records for the specified distributor
  • Price Effective Date - view records of the specified price effective date
  • Review End - view records of the specified review end date
  • Credit Memo Invoice Number - view records of the specified credit memo invoice number
• Status - view records according to the selected status:

For more information about statuses, see  Price Protection Statuses. 

• Time - view price protection created within specific days such as 5, 15, 30, 180, 365 days.
• Distributor - view price protection records of the specified distributor. 

Column Description 

Column Name	Description
P.P.ID#	Price protection id number.
Distributor	Name of the distributor
Status	Status of the price protection
Price Effective Date	The date on which the price is effective is called as Price Effective Date.
Review End	The date by when the distributor should review the price protection.
Finalize Date	Date on which finalize action was performed on the price protection
Last Modified	Date on which the price protection record was last modified.
Elig Inventory	Eligible inventory amount
Adjustment	Adjustment amount
Credit Memo #	Credit memo number that was used in the ERP for making the payments.
Credit Memo Invoice Date	Date when the credit memo was invoiced.
Credit Memo Amount	Total payment amount for that Price Protection Record. The currency of the credit memo amount is the same as the distributor currency.

Click the History Log link to view the modifications made to the price protection record. 

PPID Status

The following flow diagram depicts the chronological order in which PPID is initiated until it expires.