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:
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
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
Scenario 2: Deviated Fixed Rate (Distributor Channel)
Scenario 3: Deviated Fixed Price Structure
Scenario 4: Deviated Percentage-Based Rebate
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.
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.
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.
Eligible Distributor Companies Selection
Stacked Exposure Configuration
Actuals Companies Limitation
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)
Scenario B: Selective Company Limitation (Filtered Selection)
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:
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:
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.
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:
Data Accuracy and Interpretation Considerations:
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.
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:
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
Displays the Exposure, Actuals and Remaining Amounts.
Contract Financial Analysis Dashboard Overview
Exposure Analysis Section This module provides comprehensive breakdown of contractual financial obligations across three primary categories:
Actuals Performance Section This module presents actual disbursements processed under the current contract version, categorized as follows:
Financial Summary Metrics:
Remaining Balance Analysis Section This module calculates outstanding financial obligations through variance analysis:
Additional Navigation: Multiple specialized tabs are available within the Exposure interface for detailed analysis and reporting capabilities.
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:
Multi-Contract Stacked Analysis:
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.
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.
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.
UOM Description: displays the UOM for the product row.
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.
This Contract Estimated Quantity: the estimated quantity per product.
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.
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.
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.
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.
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 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.
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.
Distributor Exposure
Displays information by Eligible Distributor and Product.
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.
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.
UOM Description: displays the UOM for the product row.
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.
This Contract Estimated Quantity: the estimated quantity per product.
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.
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.
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.
This Contract Estimated Spend: the estimated spend for the product. Formula is Direct Rate * Estimated Quantity.
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.
Total Stacked Deviated Rate: sum of This Contract Deviated Rate plus Other Contract(s) Deviated Rate for the product row.
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.
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.
Lumpsum Exposure
Displays Contract Lumpsum information.
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.
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.
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.
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.
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.
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.
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.
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.
