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Trade Promotion Management in CRM 2007 – Integration is Key to Create Superior Customer Value
As discussed in the last blog  (can be accessed here /people/timo.wagenblatt/blog) SAP CRM 2007 provides all capabilities needed to ensure a consistent process from planning to committing to executing to validating and settling. Every single step is seamlessly integrated from a process point of view but also from a system integration point of view.

This time, let’s focus on the integration aspect in more detail and have a look how this relates to the topic of deductions that was in the spot light last time.

SAP CRM is well known for its integration capabilities as SAP has the only Business Suite that is build by evolution. The integration with ERP (master data, campaign determination, pricing procedure, condition records, rebate agreements, etc.) has already made its records in the industry.

The evolution of SAP CRM is obvious just looking at the list of new integration topics to support the processes and practices labelled as Trade Promotion Management, including Trade Funds Management and Trade Claims Management:


Trade Promotion Management (TPM)

  • Trade promotion purchasing integration for MM:
    Transfer CRM purchasing request out of trade promotion planning to ERP purchase requisition and plan the purchasing costs for trade activities directly in CRM including process integration in Trade Funds Management
  • Transfer CRM target group / product segment to ERP SD, for pricing execution purposes
  • Allow Campaign Determination for Multiple Promotions
  • Transfer Lean Promotion Master object from CRM to ERP
  • Tiered Growth Rates / Scales for Trade Spend Conditions


Trade Funds Management (TFM)

  • Upload actual sales volumes from ERP SD
  • Upload discount amounts from ERP SD
  • Transfer accruals to ERP FI and CO


Trade Claims Management (TCM)

  • Transfer ERP dispute case to CRM claim submission document
  • Transfer CRM claims settlement to ERP FI (AR or AP) and CO-PA / PCA
  • Synchronization of deduction claim settlement from CRM to ERP dispute management (FSCM)
  • Transfer of CRM pre-payments to ERP dispute management (FSCM)


As discussed last time a deduction is any situation where the channel retailer or distributor has reduced the brand owner’s invoice amount, because of a charge taken against trade promotion, marketing or other activity. The deduction results in a residual (open) item. If the open item cannot get resolved or if the channel retailer or distributor sends information that he is not going to pay the residual item a dispute case will be created and the trade related ones are cleared in CRM. Dispute cases can combine multiple open items, but there are legal requirements that in some countries there need to be a 1:1 relationship.

And that’s how this looks like in CRM 2007; starting point of the demo is after the transfer of the dispute case from ERP to CRM for validation:

That’s the power of integration, process-wise and system-wise – which alway has to come together! To watch the video in full screen mode click here.

SAP CRM has made significant investments in developing a comprehensive integrated SAP® Trade Promotion Management (TPM) solution. With the integrated back-end processes, the TPM solution provides accurate accounting of all trade and financial results, visibility into demand planning, and allowing users to optimally manage all customer activities. With CRM2007 the SAP Trade Promotion Management Solution is the most comprehensive, integrated TPM solution in the market place.

Using SAP Service Marketplace Quick Link /RKT-CRM or you can get more solution-related information.

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  1. Roy Oliphant
    TPM in 2007 certainly has added some features that will help businesses better manage this part of their business.  Your comment in the earlier entry about some businesses “not at all” doing the validations on deduction settlement highlights that much improvement can be made in these processes.
    One area that I would like to see you discuss is the maximum quantity for a promotion feature.  If an organization isn’t managing their deduction costs, I feel it is likely they are not watching their total costs as well.  This feature seems like a great way to implement a “stop-loss” rule to make sure a particular promotion does not consume the entire budget.
    1. Timo Wagenblatt Post author
      Hello Roy,

      Thanks for your comments! That’s a good start and actually that’s what I really want to achieve with my blogs – discussions, chats, thoughts about and around TPM.
      To your point about the ‘stop-loss’ – there are actually two processes that support the control of fund usages.
      – for off-invoice trade spends where the discount is directly applied to the order, we introduced an off-invoice cap that limits the consumption via sales orders. The OI cap can be set during promotion planning. Therfore you can protect yourself from big overspends.

      – we also have the capabilities of funds availability checks. You can plan funds for each promotion/trade spend and during settlement you can limit the spend to either the available budget or to your trade promotion commitment. All checks configurable to meet all variations of consumption checks during settlement and for planning as well.


      1. Sriram Iyer
        Hello Timo,

        Refer TPM 2007, I would like to know the features provided under claims processing, specifically for SAP CPG.

        – Does TPM 2007 claims module calculate the claims automatically based on pre-defined rules?

        – What are the pre-requisites in CRM and ECC (some broad functional aspects)

        Appreciate if you can provide your thoughts or guide me as appropriate.


        1. Timo Wagenblatt Post author
          Hello Sriram,

          Re – Does TPM 2007 claims module calculate the claims automatically based on pre-defined rules?

          I’m not 100% sure what you are exactly refering to, but there is multiple ways to calculate the planned exenditure of trade promotions depending on the chosen deal. I would recommend to have a look at the ramp up material to get additional information using SAP Service Marketplace Quick Link /RKT-CRM or you can get more solution-related information.

          Re – What are the pre-requisites in CRM and ECC (some broad functional aspects)

          Prerequisites for claims management or prerequisites for TPM? Functional-wise or release level – wise?

          Sorry for not having the answer directly, but I would need some more details so I can address your question better.


  2. Jens Lipperheide
    Hi Tim,

    thanks a lot for this great blog. I am always happy to see what SAP is investing to make this wonderful TPM solution even better 🙂

    I found that you mentioned that Target Groups are now fully integrated in SD order execution.  I am a little confused because in the SAP help for CRM2007 I find the following information: ‘Target groups should be used for SAP CRM standalone scenarios only, as target groups are transferred to SAP ERP but not fully supported in the SAP ERP sales order.’


    If you have a chance it would be great if you can shed some light on this.

    Thanks and best Regards,

    1. Timo Wagenblatt Post author
      Hi Jens,

      Thanks for pointing out a bug in the documentation 😉

      I checked it with my colleagues (thanks to Ed, Michael and Chantal) and target groups are supported from CRM2007 onwards in combination with ECC6. Since CRM 2007, we can generate the condition records at target group level and an order placed for a member of the target group would consider the conditions at target group level.  ERP understands conditions at target group level.
      We have also live customers using that functionality.

      Best regards,

    2. Community User
      Hello sir
      whn i create the marketing plan in UI bt m nt able to call marketing status profile when i creating the marketing plan in UI. plz is it possible or nt.

      \If you have a chance it would be great if you can shed some light on this.

  3. Venkatachalapathy Chitra
    Hi Tim,

    Thanks a lot for this blog. Very informative.  I am looking for some information on SAP TPM vs. TPM CAS.  We need some pointers as to why a customer should implement SAP TPM and not CAS TPM. What are the advantages compared to CAS TPM.  Would you please be able to throw some light in this area.



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