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--- probable_exposure_explained [2025/06/13 16:43] – tina.robles
+++ probable_exposure_explained [2025/06/13 18:48] (current) – tina.robles
@@ Line 150: / Line 150: @@
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-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 166: / Line 212: @@
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-__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.
+**Contract Financial Analysis Dashboard Overview**
-__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.
+**Exposure Analysis Section** This module provides comprehensive breakdown of contractual financial obligations across three primary categories:
-__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.
+  * 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
+**Remaining Balance Analysis Section** This module calculates outstanding financial obligations through variance analysis:
+  * 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)
+**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:
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@@ Line 178: / Line 247: @@
 **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**
+This interface provides comprehensive financial projection analysis, encompassing both current contract obligations and consolidated multi-contract exposure assessments.
+**Primary Functions:**
+**Current Contract Projections:**
+  * Displays estimated expenditure forecasts for the active contract version
+  * Provides baseline financial planning metrics for current contractual commitments
+**Multi-Contract Stacked Analysis:**
+  * 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
+**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.
+**Value Proposition:** Enables stakeholders to assess cumulative financial exposure and avoid under-budgeting scenarios that may arise from overlapping contractual commitments.
 {{:pasted:20240806-173446.png}}
-__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.
+**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 Identification Fields**
-__UOM Description__: displays the UOM for the product row.
+**Company Name and Company Number**
-__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.
+  * 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
-__This Contract Estimated Quantity__: the estimated quantity per product.
+**Product Name and Product Number**
-__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.
+  * 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
-__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.
+**Unit of Measure (UOM) Description**
-__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.
+  * Function: Specifies the measurement unit applicable to each product line item
+________________________________________
-__This Contract Estimated Spend__:  the estimated spend for the product.  Formula is Direct Rate * Estimated Quantity.
+**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
-__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.
-__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.
 {{:pasted:20240806-173512.png}}    {{:pasted:20240806-173551.png}}
-__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.
+**Total Stacked Direct Rate**
-__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.
+  * 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.
-__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.
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@@ Line 220: / Line 366: @@
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-__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}}

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