Did you know there’s an SAP standard module for contract pricing and chargeback management? It provides the same functionality as the popular Vistex add-on but there are no license fees. It’s called SAP Compensation Management and it’s part of the standard Logistics / Global Trade modules. Take a look at this comparison:
|Extra license cost||Yes||Free|
If you didn’t know about Compensation Management, don’t feel bad – it’s one of SAP’s best-kept secrets. You won’t find it in SAP marketing materials or the training curriculum. Even the online documentation is limited to just two pages, and there’s a lot of confusion with the HR module of the same name. And yet it offers critical functionality for SAP wholesale distribution.
It’s time to drag this shy module into the spotlight and give it the attention it deserves. Take a look at the Key Features, then read on to learn more about the Compensation Management module in detail. And of course, contact me with your questions, suggestions and comments.
SAP Compensation Management is an ECC module that offers the following functionality:
- Contract pricing
- Contract membership management
- Chargeback processing (chargeback submission and tracking)
- Chargeback reconciliation
- Online processing and support for EDI (844/845/849)
Compensation Management is intended for wholesalers. For example, it provides outbound chargeback processing (chargeback submission). If you are a manufacturer you may want to consider SAP CRM instead, since it provides contract pricing and inbound chargeback processing (I’ll post a future series on that topic).
Even if you already have Vistex or another add-on package, SAP Compensation Management is worth a look. The provided functionality is superb and it’s even possible to combine the two: for example you can use contract pricing from Compensation Management module along with chargebacks from Vistex, or vice-versa.
- Contracts and Chargebacks with SAP Compensation Management
- SAP Compensation Management Key Features
- Business Process
- SAP Process