Differences

This shows you the differences between two versions of the page.

--- probable_exposure_explained [2019/03/25 12:25] – lisa.maloney
+++ probable_exposure_explained [2025/06/13 18:48] (current) – tina.robles
@@ Line 1: / Line 1: @@
 __**Probable Exposure Explained**__
-Probable Exposure is the amount of dollars you'll need to set aside to pay for everything you've offered in the contract. The easiest way to explain is with a simple example where you offer $2/case and the Estimated Quantity of cases they say they'll buy is 100 cases.  This means you need to be prepared to pay out $200(100 x $2/case).  This doesn't mean you will pay this out.  The contractee might only buy 50 cases...or might buy 200 cases.
+Probable Exposure represents the maximum financial liability that must be reserved to fulfill all contractual obligations offered within a given agreement. This figure establishes the upper threshold of potential payout based on contracted terms and projected volume commitments.
-Here's how it works:
+**Calculation Methodology:**
+The probable exposure is calculated using the following formula: **Probable Exposure = Contracted Rate × Estimated Purchase Quantity**
+**Illustrative Example:**
+Consider a contract offering $2.00 per case with an estimated quantity of 100 cases:
+  * Contracted Rate: $2.00/case
+  * Estimated Quantity: 100 cases
+  * Probable Exposure: $200.00 (100 cases × $2.00/case)
+**Important Considerations:**
+It is crucial to understand that probable exposure represents a financial reserve requirement, not a guaranteed expenditure. Actual payout may vary significantly based on:
+**Under-performance:** The contractee may purchase only 50 cases, resulting in an actual payout of $100.00
+**Over-performance:** The contractee may exceed projections and purchase 200 cases, resulting in an actual payout of $400.00
-We'll use this screenshot as the example.
 {{:pasted:20170823-105746.png}}
+**Probable Exposure Calculation Scenarios**
+The following scenarios demonstrate various methodologies for calculating probable exposure based on different contract structures and pricing mechanisms.
+________________________________________
+**Scenario 1: Direct Fixed Rate Rebate**
+  * Structure: Direct rebate payment to customer
+  * Estimated Volume: 500 cases
+  * Rebate Rate: $2.15 per case
+  * Calculation: 500 cases × $2.15/case = $1,075.00
+  * Application: Standard direct-pay rebate arrangement
+________________________________________
+**Scenario 2: Deviated Fixed Rate (Distributor Channel)**
+  * Structure: Fixed rate rebate processed through distributor network
+  * Estimated Volume: 500 cases
+  * Rebate Rate: $2.00 per case
+  * Calculation: 500 cases × $2.00/case = $1,000.00
+  * Application: Distributor-mediated rebate with fixed per-unit compensation
+________________________________________
+**Scenario 3: Deviated Fixed Price Structure**
+  * Structure: Fixed pricing with variance-based rebate calculation
+  * Default Product Price: $12.34 per case
+  * Contract Fixed Price: $11.00 per case
+  * Price Differential: $12.34 - $11.00 = $1.34 per case
+  * Estimated Volume: 500 cases
+  * Calculation: $1.34/case × 500 cases = $670.00
+  * Application: Price protection mechanism through distributor channels*
+________________________________________
+**Scenario 4: Deviated Percentage-Based Rebate**
+  * Structure: Percentage-based rebate calculation
+  * Default Product Price: $42.00 per case
+  * Rebate Percentage: 10.00%
+  * Per-Case Rebate: $42.00 × 10% = $4.20 per case
+  * Estimated Volume: 500 cases
+  * Calculation: $4.20/case × 500 cases = $2,100.00
+  * Application: Percentage-based incentive structure through distributor network*
-  Scenario 1:  Direct Fixed Rate - estimated cases are 500 and the direct rebate is $2.15 so it's 500 x 2.15 = $1075.00.
-  Scenario 2:  Deviated Fixed Rate - similar to scenario 1 above but this is a deviated rate through the distributor. The calculation is the same in this scenario so for the first product it is 500 x $2.00 = $1000.00.
-  Scenario 3:  Deviated Fixed Price.  The default price for this product is $12.34 and the fixed price is $11.00, the formula takes the difference of the two and then multiplies by estimated quantity.  In this case it's $12.34 - $11.00 = $1.34 and then $1.34 x 500 = $670.00.  (See below for more detailed information regarding sales data and distributors.)
-  Scenario 4:  Deviated Percent.  In this scenario the contract has a 10.00% rebate set up.  Since the product has a Default Price of $42.00 the rebate would be 42.00 x 10% = $4.20.  $4.20 x 500 estimated cases = $2100.00 in Probable Exposure. (See below for more detailed information regarding sales data and distributors.
 -----
@@ Line 21: / Line 78: @@
 The probable exposure displays on the Exposure Tab of a contract.
-{{:pasted:20190325-122537.png}}
+{{:pasted:20240806-172101.png}}
 To Generate Exposure for a contract, click the Generate button.
-{{:pasted:20170823-110507.png}}
+{{:pasted:20240806-171758.png}}
 There are 2 different popups that appear to generate exposure – the size of the contract determines which Generate Exposure popup displays.
@@ Line 31: / Line 88: @@
 The Generate Exposure popup below displays on smaller contract where there are not a lot of companies on the contract.
-{{:pasted:20171110-140117.png}}
+{{:pasted:20240806-172802.png}}
 The Generate Exposure contract popup below is presented where there are a significant number of companies on the contract.  The count of companies to select varies by contract.
-{{:pasted:20171110-140140.png}}
+{{:pasted:20240806-172726.png}}
-__Eligible Distributor Companies:__ click on a row to select.  Use the ctrl or shift buttons to select multiple companies.  The companies selected here are the only ones that will display in the exposure grids.
+**Eligible Distributor Companies Selection**
-__Stacked Enabled:__ checking this box will generate Stacked Exposure as well as the Probable Exposure.  Leaving it unchecked will only generate the probable exposure.
+  * Function: Distributor filtering and selection interface
+  * Operation: Click to select individual distributor entities from the available list
+  * Multi-Selection: Utilize Ctrl (individual selection) or Shift (range selection) keys for multiple company selection
+  * Impact: Selected distributors will be the exclusive entities displayed within the exposure calculation grids
+  * Purpose: Enables targeted analysis by limiting data scope to relevant distribution partners
-__Limit Actuals Companies:__ checking this box will limit the companies returned to only companies which have claimed on the contract.
+**Stacked Exposure Configuration**
+  * Function: Dual exposure calculation methodology
+  * Enabled State: Generates both Stacked Exposure and Probable Exposure calculations simultaneously
+  * Disabled State: Produces Probable Exposure calculations exclusively
+  * Application: Provides comprehensive exposure analysis when enabled, or streamlined reporting when disabled
+**Actuals Companies Limitation**
+  * Function: Historical claims-based filtering mechanism
+  * Enabled State: Restricts displayed companies to those with documented claim history on the specified contract
+  * Purpose: Focuses analysis on distributors with established transactional relationships
+  * Benefit: Eliminates inactive or non-participating entities from exposure calculations, enhancing data relevance and accuracy
 -----
 **IMPORTANT NOTES ABOUT ESTIMATED QUANTITY AND EXPOSURE WHEN LIMITING BY COMPANIES**
-If all companies are selected and the Limit Actuals Companies box is un-checked, the estimated quantity is applied to all distributors per product on the exposure tabs.
+**Exposure Calculation Methodology Based on Company Selection Parameters**
-If the exposure is limited based on a selection of companies or by checking the Limit Actuals Companies box, a subset of the eligible companies allowed on the contract are returned.  In this instance, the estimated quantity per product is applied to only the distributors selected and not all the distributors which are eligible on the contract.
+**Scenario A: Universal Company Selection (No Limitations Applied)**
+  * Configuration: All eligible companies selected with "Limit Actuals Companies" option disabled
+  * Calculation Method: Estimated quantities are proportionally distributed across all authorized distributors for each product line
+  * Scope: Complete distributor network inclusion in exposure calculations
+  * Result: Maximum potential exposure reflecting full contract utilization across entire distribution network
+**Scenario B: Selective Company Limitation (Filtered Selection)**
+  * Configuration: Either manual company selection or "Limit Actuals Companies" restriction enabled
+  * Calculation Method: Estimated quantities apply exclusively to the filtered subset of eligible distributors
+  * Scope: Limited distributor participation based on selection criteria
+  * Result: Reduced exposure calculation reflecting targeted distribution strategy or historical performance data
+**Business Impact:** The selection methodology directly influences exposure calculations and financial projections. Universal selection provides comprehensive risk assessment, while selective limitation offers focused analysis based on strategic partnerships or proven performance metrics.
+**Illustrative Example: Contract Configuration:**
+  * Product Portfolio: Two distinct product lines with specified rates and estimated quantities
+  * Authorized Distribution Network: Two qualified distributors
+  -  Sysco Albany
+  - US Foods Metro NY
+  * Application: Exposure calculations will vary significantly based on company selection parameters, affecting both financial planning and risk management strategies
-Example:
-A Contract is set up with the following 2 products at the rate and estimated quantity listed.  There are also 2 eligible distributors on the contract – Sysco Albany and US Foods Metro NY.
 {{:pasted:20171110-140751.png}}
-If exposure is run without limiting by company selection or by companies with actuals, the deviated exposure will show the total estimated quantity for the product and divide that out per distributor on the contract.
+**Unrestricted Exposure Calculation Methodology**
+When exposure analysis is executed without company-specific limitations or historical claims filtering, the system applies a proportional distribution model for deviated exposure calculations.
+**Process Overview:**
+  * Input: Total estimated quantity per product line
+  * Distribution Method: Proportional allocation across all authorized distributors within the contract framework
+  * Output: Deviated exposure values distributed equally among eligible distribution partners
+**Operational Impact:** This methodology ensures comprehensive exposure assessment by incorporating the full distribution network capacity, providing a complete financial risk profile that reflects maximum potential contract utilization across all authorized channels.
+**Business Application:** The proportional distribution approach supports strategic planning by presenting exposure scenarios that account for full network engagement, enabling more robust financial forecasting and risk management protocols.
 {{:pasted:20171110-140847.png}}
-However, if the contract exposure is limited to specific companies or companies with actuals, the estimated volume is applied to only the companies selected.  In the example below, the entire estimated volume for the products are applied to Sysco Albany.  The total probable exposure per product is still accurate, but the estimated spend for this location is overstated since not all the distributors are displaying.
+**Restricted Exposure Calculation and Data Interpretation**
+**
+Methodology for Limited Company Selection:** When exposure calculations are constrained to specific distributors or entities with documented transaction history, the system applies the complete estimated volume exclusively to the selected subset of companies.
+**Calculation Process:**
+  * Volume Application: Total estimated quantities are allocated solely to the filtered distributor selection
+  * Distribution Logic: Selected companies receive the full volume allocation rather than proportional distribution
+  * Example Scenario: When analysis is limited to Sysco Albany, the entire estimated product volume is attributed to this single distribution partner
+**Data Accuracy and Interpretation Considerations:**
+  * Aggregate Exposure: Total probable exposure calculations per product remain mathematically accurate
+  * Location-Specific Metrics: Individual distributor spend projections become artificially inflated
+  * Root Cause: Volume concentration occurs because excluded distributors are not reflected in the display parameters
+**Business Implications:** This methodology provides focused analysis capabilities while requiring careful interpretation of location-specific metrics. Users must recognize that individual distributor exposure figures represent concentrated scenarios rather than realistic distribution patterns when multiple authorized partners exist within the contract framework.
+**Recommendation:** Utilize this feature for targeted analysis while maintaining awareness of the concentrated allocation impact on individual distributor projections.
 {{:pasted:20171110-140955.png}}
-**NOTE** – if the user selects companies to view probable exposure, and there are other companies which have actuals on the contract, the actuals for the companies not selected will display under the product/lumpsum overflow tab.
+**Important System Behavior Notice**
+**Actuals Data Display Protocol:** When users apply company-specific filtering to view probable exposure calculations, the system maintains comprehensive data integrity by automatically redirecting excluded distributor information to designated overflow sections.
+**Technical Process:**
+  * Selected Companies: Display within standard exposure calculation grids
+  * Non-Selected Companies with Transaction History: Automatically populate the Product/Lumpsum Overflow tab
+  * Data Preservation: Ensures complete contract performance visibility regardless of display filtering
+**Business Impact:** This functionality prevents data loss while enabling focused analysis. Users can examine targeted distributor performance while maintaining access to complete contract activity through the overflow interface.
+**User Guidance:** Review the Product/Lumpsum Overflow tab when utilizing company-specific filtering to ensure comprehensive understanding of total contract performance and avoid overlooking significant transactional data from non-displayed distributors.
 -----
 **Summary**
@@ Line 71: / Line 210: @@
 Displays the Exposure, Actuals and Remaining Amounts.
-{{:pasted:20190325-121959.png}}
+{{:pasted:20240806-172935.png}}
+**Contract Financial Analysis Dashboard Overview**
+**Exposure Analysis Section** This module provides comprehensive breakdown of contractual financial obligations across three primary categories:
+  * Product Direct Exposure: Direct product-related financial commitments
+  * Product Deviated Exposure: Distributor-mediated product obligations
+  * Lumpsum Exposure: Fixed payment commitments
+  * Total Probable Exposure: Aggregate sum of all contractual financial obligations displayed at section footer
+**Actuals Performance Section** This module presents actual disbursements processed under the current contract version, categorized as follows:
+  * Product Direct Actuals: Direct product payments executed
+  * Product Deviated Actuals: Distributor-channel payments processed
+  * Lumpsum Actuals: Fixed payment disbursements completed
+  * Overflow Components:
+  - Product Overflow: Payments processed for products not included in current contract version (e.g., ineligible SKUs, discontinued products from previous amendments)
+  - Lumpsum Overflow: Payments for events or lumpsums not authorized under current contract terms (e.g., ineligible promotional events)
+**Financial Summary Metrics:**
+  * Contract Actuals: Sum of payments for items explicitly authorized under current contract version
+  * Contract Total Actuals: Comprehensive sum of all payments processed under this contract version, including overflow items
-__Exposure__: This section breaks out the contract exposure by product direct, product deviated, and lumpsum spend.  The contract’s total probable exposure is summed at the bottom of that section.
+**Remaining Balance Analysis Section** This module calculates outstanding financial obligations through variance analysis:
-__Actuals__: This section breaks out the actual amount paid on this contract version by product direct, product deviated, lumpsum and overflow amounts.  The Product Overflow and Lumpsum Overflow amounts are what was paid on this contract to products and/or lumpsums which are not on the current version of the contract.  Some examples are Ineligible Skus or Ineligible Events.  Other examples are products which were on the previous contract version but were removed from the current contract amend version.  The Contract Actuals amount is the sum for items paid which are on the contract only.  The Contract Total Actuals is the sum of all amounts paid on this contract version.
+  * Contract Remaining: Difference between authorized exposure and corresponding actuals for current contract items only
+  * Contract Total Remaining: Comprehensive variance including all exposure minus total actuals (including overflow payments)
-__Remaining__: This section displays the remaining amount between the exposure and actuals.  At the bottom of the section there are 2 different values.  The Contract Remaining is the exposure amount minus the actual amount for the products on the contract version.  The Contract Total Remaining is the exposure amount minus the actuals including products/lumpsums not on the contract version.
+**Additional Navigation:** Multiple specialized tabs are available within the Exposure interface for detailed analysis and reporting capabilities.
-Note that there are several different tabs with the Exposure tab:
-{{:pasted:20170823-110651.png}}
+{{:pasted:20240806-173025.png}}
 -----
-**Direct Exposure**
+**Contractee Exposure**
-This tab displays the estimated spend for the current contract version as well as stacked reporting information for other claimable contracts where there are overlapping timeframes for the contractee.
+**Stacked Exposure Analysis Tab**
-{{:pasted:20180514-124530.png}}
+This interface provides comprehensive financial projection analysis, encompassing both current contract obligations and consolidated multi-contract exposure assessments.
-__Company Name and Company Number__: displays the company name and number of the contractee.  If the contractee is a company grouping, each of the companies which are a part of that grouping will display.
+**Primary Functions:**
-__Product Name and Product Number__: displays the product name and number for products listed on the contract as well as other products listed on other contracts for the contractee and timeframe.  If the product is on the contract as a product grouping, each of the products in that grouping will display.
+**Current Contract Projections:**
-__UOM Description__: displays the UOM for the product row.
+  * Displays estimated expenditure forecasts for the active contract version
+  * Provides baseline financial planning metrics for current contractual commitments
-__This Contract Direct Rate__: the direct rate per product.  Note that this field will convert all amounts to a rate even if the product is defined as fixed price or a percent.  If the company is a distributor and the product is priced as a percent or fixed price, the rate displayed will be based on either default price, sales data or price by company/product as defined in order in the client settings for the manufacturer.
+**Multi-Contract Stacked Analysis:**
-__This Contract Estimated Quantity__: the estimated quantity per product.
+  * Presents consolidated exposure reporting across multiple concurrent claimable contracts
+  * Identifies overlapping contract timeframes for the specified contractee
+  * Enables comprehensive risk assessment when multiple contractual obligations exist simultaneously
-__Estimated Quantity for Product Grouping__: If a product is on the contract at the product grouping level, the estimated volume will display as the value entered on the contract divided by the count of products in the grouping.  For example, if the product grouping had an estimated volume of 100 and there were 4 products in the grouping, an estimated volume value of 25 would display on each product row.
+**Business Application:** This functionality supports strategic financial planning by providing visibility into total potential exposure across all active contractual relationships, ensuring accurate budget allocation and risk management for scenarios involving concurrent contract obligations with shared timeframes.
-__Estimated Quantity for Company Grouping__: If the contractee is a company grouping, the estimated volume will display as the value entered on the contract divided by the count of companies in the grouping.
+**Value Proposition:** Enables stakeholders to assess cumulative financial exposure and avoid under-budgeting scenarios that may arise from overlapping contractual commitments.
-__Estimated Quantity for Both Product Grouping and Company Grouping__: If the contractee is a company grouping and there are product groupings on the contract.  The estimated volume will display as the value entered on the contract divided by the count of companies in the grouping and divided by the count of products in the grouping.
-__This Contract Estimated Spend__:  the estimated spend for the product.  Formula is Direct Rate * Estimated Quantity.
+{{:pasted:20240806-173446.png}}
-__Other Contract(s) Direct Rate__: displays a sum of all rates for other claimable contracts for the same contractee, timeframe and product.  In the instance the contractee is an operator, it will also include the direct rate for the eligible distributor where it is the contractee on a contract for that product and timeframe.  Note that this field will convert all amounts to a rate even if the product is defined as fixed price or a percent.  Clicking the hyperlink will open a popup which displays the other contract version information for that product row.
+**Contract Analysis Interface: Field Definitions and Functionality**
-__Other Operator Contract(s) Rate__: in the instance the contractee is a distributor, the other operator contract rate will show the MAX rate where the contractee is an eligible distributor on an operator contract for that product and timeframe.  Note that this field will convert all amounts to a rate even if the product is defined as fixed price or a percent.  Clicking the hyperlink will open a popup which displays the other operator contract version information for that product row.
+**Entity Identification Fields**
-{{:pasted:20170823-110930.png}}
+**Company Name and Company Number**
-__Total Stacked Direct Rate__: sum of This Contract Direct Rate plus Other Contract(s) Direct Rate plus Other Operator Contract(s) Rate for the product row.
+  * Function: Displays contractee identification and organizational structure
+  * Group Handling: When contractee represents a company grouping, all constituent member companies are individually listed
+  * Purpose: Provides comprehensive visibility into contractual relationships and organizational hierarchies
-__Total Stacked Estimated Spend__: formula of This Contract Estimated Quantity * Total Stacked Direct Rate.  This value represents how much could be paid out to this contractee for this timeframe over many different contracts.
+**Product Name and Product Number**
-__Total Claim Amount__: displays a sum of dollars on how much has been paid out to the sku for this contract version.  Clicking the hyperlink will open a popup with the claim information.
+  * Function: Displays product identification for current contract items and related products from concurrent contracts
+  * Scope: Includes products from current contract plus additional products from other active contracts within overlapping timeframes
+  * Group Handling: When products are defined at grouping level, all individual products within the grouping are separately displayed
-{{:pasted:20170823-110954.png}}
+**Unit of Measure (UOM) Description**
+  * Function: Specifies the measurement unit applicable to each product line item
+________________________________________
+**Financial Calculation Fields**
+**This Contract Direct Rate**
+  * Function: Displays standardized per-unit rate for current contract products
+  * Rate Conversion: Automatically converts fixed price and percentage-based pricing to equivalent rates
+  * Distributor Pricing Logic: For distributor contracts with percentage or fixed pricing, rates are calculated using hierarchical data sources (default price, sales data, or company/product-specific pricing) as configured in manufacturer client settings
+**This Contract Estimated Quantity**
+  * Function: Projected volume per product line
+  * Calculation Methodology:
+  - Product Grouping: Contract volume divided equally among constituent products (e.g., 100 units ÷ 4 products = 25 units per product)
+  - Company Grouping: Contract volume divided equally among member companies
+  - Combined Groupings: Contract volume divided by both company count and product count for proportional allocation
+**This Contract Estimated Spend**
+  * Formula: Direct Rate × Estimated Quantity
+  * Purpose: Provides projected financial commitment per product line
+________________________________________
+**Comparative Analysis Fields**
+**Other Contract(s) Direct Rate**
+  * Function: Aggregated rates from concurrent claimable contracts for identical contractee, timeframe, and product combinations
+  * Operator Enhancement: For operator contractees, includes applicable distributor rates where distributor serves as contractee for same product/timeframe
+  * Interactive Feature: Hyperlink access to detailed contract version information popup
+  * Rate Standardization: Converts all pricing structures to comparable rate format
+**Other Operator Contract(s) Rate**
+  * Function: Maximum rate identification for distributor contractees
+  * Application: Displays highest rate where contractee serves as eligible distributor on operator contracts for matching product/timeframe
+  * Interactive Feature: Hyperlink access to detailed operator contract version information popup
+  * Rate Standardization: Maintains consistent rate format across all pricing structures
+{{:pasted:20240806-173512.png}}    {{:pasted:20240806-173551.png}}
+**Total Stacked Direct Rate**
+  * Calculation: Aggregate sum of This Contract Direct Rate + Other Contract(s) Direct Rate + Other Operator Contract(s) Rate
+  * Purpose: Provides comprehensive rate analysis across all concurrent contractual obligations for each product line
+  * Business Application: Enables assessment of cumulative pricing exposure and competitive rate positioning
+**Total Stacked Estimated Spend**
+  * Formula: This Contract Estimated Quantity × Total Stacked Direct Rate
+  * Financial Significance: Represents maximum potential payout exposure to the contractee across all active contracts within the specified timeframe
+  * Strategic Value: Facilitates comprehensive budget planning and risk assessment for multi-contract scenarios
+  * Risk Management: Identifies total financial commitment potential when multiple contractual relationships exist simultaneously
+**Total Claim Amount**
+  * Function: Displays aggregate disbursements processed for the specific SKU under current contract version
+  * Data Source: Historical payment records and processed claims
+  * Interactive Feature: Hyperlink provides detailed claim transaction history and supporting documentation
+  * Performance Tracking: Enables comparison between projected spend and actual financial performance
+  * Audit Trail: Maintains comprehensive record of all financial transactions associated with the product line
+**Analytical Benefits:** These metrics collectively provide stakeholders with comprehensive visibility into both projected and actual financial performance, enabling informed decision-making regarding contract optimization, budget allocation, and risk management across complex multi-contract environments.
+{{:pasted:20240806-173638.png}}
 -----
-__**Deviated Exposure**__
+__**Distributor Exposure**__
 Displays information by Eligible Distributor and Product.
-{{:pasted:20170823-111401.png}}
+{{:pasted:20240806-173916.png}}
-__Company Name and Company Number__: displays the company name and number of the eligible distributors listed on the contract.  If the distributor is a company grouping, each of the companies which are a part of that grouping will display.
+**Distributor Contract Analysis Interface: Field Definitions and Functionality**
-__Product Name and Product Number__: displays the product name and number for products listed on the contract as well as other products listed on other contracts for the contractee and timeframe.  If the product is on the contract as a product grouping, each of the products in that grouping will display.
+**Entity and Product Identification Fields**
-__UOM Description__: displays the UOM for the product row.
+**Company Name and Company Number**
-__This Contract Deviated Rate__: the direct rate per product.  Note that this field will convert all amounts to a rate even if the product is defined as fixed price or a percent.  If the company is a distributor and the product is priced as a percent or fixed price, the rate displayed will be based on either default price, sales data or price by company/product as defined in order in the client settings for the manufacturer.
+  * Function: Displays identification details for authorized distributors specified within the contract framework
+  * Group Structure Handling: When distributor represents a company grouping, all constituent member organizations are individually enumerated
+  * Purpose: Provides comprehensive visibility into distribution network partnerships and organizational hierarchies
-__This Contract Estimated Quantity__: the estimated quantity per product.
+**Product Name and Product Number**
-__Product Grouping__: If a product is on the contract at the product grouping level, the estimated volume will display as the value entered on the contract divided by the count of products in the grouping.  For example, if the product grouping had an estimated volume of 100 and there were 4 products in the grouping, an estimated volume value of 25 would display on each product row.
+  * Scope: Displays product identification for current contract items plus related products from concurrent contracts within overlapping timeframes
+  * Cross-Contract Integration: Includes products from active contracts sharing the same contractee and timeframe parameters
+  * Group Expansion: When products are defined at grouping level, all individual SKUs within the grouping are separately displayed for granular analysis
-__Company Grouping__: If the distributor is a company grouping, the estimated volume will display as the value entered on the contract divided by the count of companies in the grouping.
+**Unit of Measure (UOM) Description**
-__Both Product Grouping and Company Grouping__: If the distributor is a company grouping and there are product groupings on the contract.  The estimated volume will display as the value entered on the contract divided by the count of companies in the grouping and divided by the count of products in the grouping.
+  * Function: Specifies standardized measurement units applicable to each product line item
+________________________________________
-__This Contract Estimated Spend__:  the estimated spend for the product.  Formula is Direct Rate * Estimated Quantity.
+**Financial Analysis and Calculation Fields**
-__Other Contract(s) Deviated Rate__: displays a sum of all rates for other claimable contracts for the same contractee, eligible distributor, timeframe and product.  Note that this field will convert all amounts to a rate even if the product is defined as fixed price or a percent.  Clicking the hyperlink will open a popup which displays the other contract version information for that product row.
+**This Contract Deviated Rate**
+  * Function: Displays standardized per-unit rate for distributor-mediated contract products
+  * Rate Standardization: Automatically converts fixed price and percentage-based pricing structures to equivalent rate format
+  * Pricing Hierarchy: For distributor contracts utilizing percentage or fixed pricing, rates are calculated using prioritized data sources (default pricing, historical sales data, or company/product-specific pricing) as configured in manufacturer client settings
+**This Contract Estimated Quantity**
+  * Base Function: Projected volume allocation per product line
+  * Allocation Methodologies
+Product Grouping Distribution:
+  - Logic: Contract volume divided proportionally among constituent products
+  - Example: 100-unit grouping ÷ 4 products = 25 units per individual product line
+Company Grouping Distribution:
+  * Logic: Contract volume allocated equally across member distributor companies
+  * Application: Ensures equitable volume distribution within distributor networks
+Combined Grouping Distribution:
+  * Logic: Contract volume divided by both company count and product count for precise proportional allocation
+  * Complexity Management: Handles multi-dimensional grouping scenarios with mathematical precision
+This Contract Estimated Spend
+  * Formula: Deviated Rate × Estimated Quantity
+  * Purpose: Provides projected financial commitment per product line through distributor channels
+________________________________________
+**Comparative Contract Analysis**
+**Other Contract(s) Deviated Rate**
+  * Function: Aggregated deviated rates from concurrent claimable contracts matching identical contractee, distributor, timeframe, and product parameters
+  * Rate Conversion: Standardizes all pricing structures to comparable rate format for accurate analysis
+  * Interactive Documentation: Hyperlink provides access to detailed contract version information popup
+  * Strategic Value: Enables comprehensive rate comparison and optimization analysis across multiple distributor relationships
 {{:pasted:20170823-111422.png}}
-__Total Stacked Deviated Rate__: sum of This Contract Deviated Rate plus Other Contract(s) Deviated Rate for the product row.
+**Total Stacked Deviated Rate**
+  * Calculation: Aggregate sum of This Contract Deviated Rate + Other Contract(s) Deviated Rate
+  * Purpose: Provides comprehensive rate analysis across all concurrent distributor-mediated contractual obligations for each product line
+  * Strategic Application: Enables assessment of cumulative distributor pricing exposure and competitive positioning within distribution networks
+  * Business Value: Facilitates distributor relationship optimization and rate competitiveness analysis
+**Total Stacked Estimated Spend**
+  * Formula: This Contract Estimated Quantity × Total Stacked Deviated Rate
+  * Financial Significance: Represents maximum potential distributor payout exposure across all active contracts within the specified timeframe
+  * Risk Assessment: Quantifies total financial commitment potential when multiple distributor contracts exist simultaneously
+  * Budget Planning: Enables comprehensive distributor-specific budget allocation and financial forecasting
+  * Distribution Strategy: Supports informed decision-making regarding distributor partnership investments and resource allocation
+**Total Claim Amount**
+  * Function: Displays aggregate disbursements processed to the specific distributor for the designated SKU under current contract version
+  * Transaction Scope: Historical payment records and processed distributor claims
+  * Interactive Documentation: Hyperlink provides comprehensive claim transaction history and supporting payment documentation
+  * Performance Analytics: Enables comparison between projected distributor spend and actual financial performance
+  * Distributor Management: Maintains detailed audit trail of all financial transactions within distributor partnerships
+  * Compliance Tracking: Supports distributor payment verification and contract performance monitoring
-__Total Stacked Estimated Spend__: formula of This Contract Estimated Quantity * Total Stacked Deviated Rate.  This value represents how much could be paid out to this distributor for this timeframe over many different contracts.
+**Strategic Benefits:** These metrics collectively provide stakeholders with comprehensive visibility into distributor-specific financial performance, enabling informed decision-making regarding distribution strategy optimization, budget allocation, and risk management across complex multi-contract distributor environments. This analysis supports enhanced distributor relationship management and strategic partnership development.
-__Total Claim Amount__: displays a sum of dollars on how much has been paid out to the distributor and sku for this contract version.  Clicking the hyperlink will open a popup with the claim information.
 {{:pasted:20170823-111437.png}}
@@ Line 161: / Line 461: @@
 Displays Contract Lumpsum information.
-{{:pasted:20170823-111815.png}}
+{{:pasted:20240806-174310.png}}
 __Lumpsum Description__: lumpsum description defined on the contract version.
@@ Line 175: / Line 475: @@
 __Total Claim Amount__: displays the amount claimed for the lumpsum row.  Clicking the hyperlink will open a popup displaying the claim information.
-{{:pasted:20170823-111840.png}}
+{{:pasted:20240806-174336.png}}
 -----
 __**Product Actuals Overflow**__
@@ Line 189: / Line 489: @@
 Products which were on the contract when the claim was paid, but the contract has since been amended and that product was removed.
-{{:pasted:20170823-112443.png}}
+{{:pasted:20240806-174508.png}}
 __Company Name and Company Number__: displays the company information pertaining to the claimant of the overflow product row.
@@ Line 197: / Line 497: @@
 __Total Claim Amount__: the amount paid for that product.  Clicking the hyperlink will open a popup window displaying the claim information.
-{{:pasted:20170823-112458.png}}
+{{:pasted:20240806-174526.png}}
 ------
 __**Lumpsum Actuals Overflow**__
@@ Line 209: / Line 509: @@
 Lumpsums which were on the contract when the claim was paid, but the contract was amended and that lumpsum is no longer defined on the current version of the contract.
-{{:pasted:20170823-112545.png}}
+{{:pasted:20240806-175255.png}}
 __Lumpsum Description and Lumpsum Code__: displays the lumpsum information for lumpsums which are not defined on the contract.
@@ Line 225: / Line 525: @@
 To view the report, click the report button.
-{{:pasted:20170823-113724.png}}
+{{:pasted:20240806-174705.png}}
+Then select an export type and decide to either show (un-check) or hide (check) the Claimant Info and click the Generate report.  Once the report has generated, click the hyperlink in the Generated Reports section.
-Then select an export option and decide to either show (un-check) or hide (check) the Claimant Info and click the Generate button.  Once the report has generated, click the hyperlink in the Generated Reports section.
+{{:pasted:20240806-174727.png}}
-{{:pasted:20170823-113740.png}}
+__Excel Export__: The export displays a sheet per tab.  The export will limit the data if there are any filters on any of the columns so be sure to clear filters prior to opening the export.
-__Excel Export__: click this option to view an export of all the Exposure grids.  The export displays a sheet per tab.  The export will limit the data if there are any filters on any of the columns so be sure to clear filters prior to opening the export.
-{{:pasted:20170823-113817.png}}
 -----

Telus TPM Documentation

User Tools

Site Tools

Differences

Page Tools