Telus TPM Documentation
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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.
Here's how it works:
We'll use this screenshot as the example.
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.) Scenario 5: Growth Program. Please see below for a more defined explanation of how Growth works with Probable Exposure.
Scenario 5: Helps explain how Growth and Probable Exposure work together.
Probable Exposure and Stacked Data
The probable exposure displays on the Exposure Tab of a contract.
To Generate Exposure for a contract, click the Generate button.
Summary
Displays the Exposure, Actuals and Remaining Amounts.
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.
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 contract. Examples are Ineligible Sku or Ineligible Event. 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.
Remaining: This section displays the remaining amount as the exposure amount minus the actual amount for the products on the contract version. The total amount remaining is summed at the bottom of that section – this amount excludes the total for amounts paid which are not contract products/lumpsum.
Note that there are several different tabs with the Exposure tab:
