Telus TPM Documentation

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__**Probable Exposure Explained**__

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.

**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


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**Probable Exposure Calculation Scenarios**

The following scenarios demonstrate various methodologies for calculating probable exposure based on different contract structures and pricing mechanisms.

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**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
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**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
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**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*
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**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*


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__**Probable Exposure and Stacked Data**__

The probable exposure displays on the Exposure Tab of a contract.

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To Generate Exposure for a contract, click the Generate button.

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There are 2 different popups that appear to generate exposure – the size of the contract determines which Generate Exposure popup displays.

The Generate Exposure popup below displays on smaller contract where there are not a lot of companies on the contract.

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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.

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**Eligible Distributor Companies Selection**

  * 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

**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

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**IMPORTANT NOTES ABOUT ESTIMATED QUANTITY AND EXPOSURE WHEN LIMITING BY COMPANIES**

**Exposure Calculation Methodology Based on Company Selection Parameters**

**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


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**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.


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**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.


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**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.


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**Summary**

Displays the Exposure, Actuals and Remaining Amounts.

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**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

**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.


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**Contractee Exposure**

**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.


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**Contract Analysis Interface: Field Definitions and Functionality**

**Entity Identification Fields**

**Company Name and Company Number**

  * 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

**Product Name and Product Number**

  * 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

**Unit of Measure (UOM) Description**

  * Function: Specifies the measurement unit applicable to each product line item
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**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
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**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



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**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.


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__**Distributor Exposure**__

Displays information by Eligible Distributor and Product.

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**Distributor Contract Analysis Interface: Field Definitions and Functionality**

**Entity and Product Identification Fields**

**Company Name and Company Number**

  * 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

**Product Name and Product Number**

  * 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

**Unit of Measure (UOM) Description**

  * Function: Specifies standardized measurement units applicable to each product line item
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**Financial Analysis and Calculation Fields**

**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
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**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

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**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

**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.


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__**Lumpsum Exposure**__

Displays Contract Lumpsum information.

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__Lumpsum Description__: lumpsum description defined on the contract version.

__Lumpsum Code__: lumpsum code defined on the contract version.

__Contract Lumpsum Description__: contract’s lumpsum descriptions defined on the contract version.

__Event Start and End Date__: dates defined for the lumpsum.

__Total Estimated Spend__: amount defined on the contract for the lumpsum.

__Total Claim Amount__: displays the amount claimed for the lumpsum row.  Clicking the hyperlink will open a popup displaying the claim information.

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__**Product Actuals Overflow**__

Displays information on products which were paid on the contract but are not defined on the current contract version.  

Examples:

Ineligible Skus overridden and paid

Products which were on the contract as part of a product grouping, but are no longer part of that product grouping.

Products which were on the contract when the claim was paid, but the contract has since been amended and that product was removed.

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__Company Name and Company Number__: displays the company information pertaining to the claimant of the overflow product row.

__Product Name and Product Number__: displays the product information of the item which was claimed and paid on the contract version, but is not a product on the contract.

__Total Claim Amount__: the amount paid for that product.  Clicking the hyperlink will open a popup window displaying the claim information.

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__**Lumpsum Actuals Overflow**__

Displays information on lumpsums which were paid on the contract but are not defined on the current contract version.  

Examples:

Ineligible lumpsum events which were overridden and paid.

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.

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__Lumpsum Description and Lumpsum Code__: displays the lumpsum information for lumpsums which are not defined on the contract.

__Total Claim Amount__: displays the amount paid for the lumpsum.  Clicking the hyperlink will open a popup displaying the claim information.

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__**Reports**__

There are 2 options available related to probable exposure and stacked reporting.

__Probable vs Actuals__: this report displays the contract and claim information in report format.  

To view the report, click the report button. 

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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.

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__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.


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