Note 1331970 - Loyalty Sales Order Setup Document

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SAP Note 1331970 - Loyalty Sales order setup document

Note Language: English Version: 3 Validity: Valid Since 28.09.2012

Summary

Symptom

Loyalty functionality in sales order

Other terms

Reason and Prerequisites

Solution

Please read the documentation below

Setup for Integration of Sales Order with Loyalty for CRM 7.0

You can use this note to integrate the loyalty application with sales order

to allow customers to earn reward points on purchase of products, redeem

points and buy point products. To enable the above-mentioned functionality,

the following set up has to be carried out in the system:

-> Product master data

You have to add SetType REWARD_PRO_LOY (created for product type Material)

to the product category. You may create a new product category for loyalty

products. You can add the settype to a product category using the following

steps:

1. Use transaction COMM_HIERARCHY

2. Search for the category to be used for loyalty products

3. In the SetTypes tab under Category Data, add REWARD_PRO_LOY as the

settype

After the settype is added to the loyalty product category, it will appear

as point information assignment block in the product overview page. Here,

you can maintain point information for Accrual, Redemption and Buy Points

scenarios. You have to select the Scenario, Point Type (Points, Miles etc)

and enter the associated number of points. The following three activities

are supported:

-> Accrual

In this scenario, a customer buys standard products and earns reward points

for his purchase. The actual points to be accrued will be maintained at

product master data level. You have to select EARN as the loyalty

scenario.

Example: We have a product, Laptop T 61, which has 1000 reward points

associated with it, at the product master level. If a customer buys this

product a member activity will be created and 1000 points will be credited

to his account.

Note: You can maintain points for a product with a particular loyalty

scenario in the point information assignment block of product overviewpage.



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-> Redemption

In this scenario, a customer redeems his points to buy products. In CRM

7.0, redemption products have 100% discount and can be bought only by

points. The point value of such products will be maintained at product

master data level in point information assignment block. You have to select

REDEEM as the loyalty scenario.

Example: We have a keyboard HT-1010, which has a price of 5000 points (and

100% discount). If a customer buys this product, a member activity will be

created and 5000 points will be deducted from the customer's account.

-> Buy Points

This functionality enables a customer to purchase points. The point value

of such products will be maintained at product master data level under the

point Information assignment block. You have to select BUYPOINTS as the

loyalty scenario.

Note:

Point information is maintained for 1 base unit of product .If the quantityand unit of measure are changed, the points will be calculated accordingly.

-> Customizing in SPRO

You have maintained the following customizing settings in SPRO:

-> In the customizing activity Define Point Types for Sales-Order

Integration, you maintain point types. For more information, see SAP

Customizing Implementation guide Customer Relationship Management

Marketing Loyalty Management - Design Channel Integration Define Point

Types for Sales-Order Integration

Point Information in product master can be maintained only for these point

types.

-> In the customizing activity Define Categories and Types for Sales Order

Integration, you maintain member activity category, activity type, sales

order status for which activity will be created and the processing delay (

Process On Hold) for a particular loyalty scenario. For more information,

see SAP Customizing Implementation guide Customer Relationship Management

Marketing Loyalty Management - Execution Member Activities Define

Categories and Types for Sales Order Integration

-> In the customizing activity Define Transaction Types, you maintain the

transaction types for accrual, redemption and buy points. For more

information, see SAP Customizing Implementation guide Customer

Relationship Management Transactions Basic Settings Define Transaction

Types

Note:

Reference transaction types LTAA, LTAR and LTAB are delivered for CRM IC

and UIU. For web channel, transaction types ISLA, ISLR and ISLB are

delivered.

You can create new transaction types on project basis but transaction



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classification should be maintained as A, R and B for accrual, redemption

and buy points transactions respectively.

For redemption transaction LTAR, the item category is LTAR where the

pricing process is maintained as 100% discount. Therefore, the net value

will always be 0 for redemption items and only points will be charged. You

have to maintain the condition 0R10 in pricing procedure. The pricing

procedure 0CRM01 contains the details of condition 0R10. If you do not

maintain 100% discount, then additional currency price will be displayed.

For example, $200 + 100 MILES.

Billing and delivery related customizing has to be done on a project basis.

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Setup for Integration of Sales Order with Loyalty in EhPx for CRM 7.0

You can use this note to integrate the loyalty application with sales order

to allow customers to earn reward points on purchase of products, redeem

points and buy point products. To enable the above-mentioned functionality,

the following set up has to be carried out in the system:

-> Product master data

You have to add SetType REWARD_PRO_LOY (created for product type Material)

to the product category. You may create a new product category for loyalty

products. You can add the SetType to a product category using the following

steps:

1. Use transaction COMM_HIERARCHY

2. Search for the category to be used for loyalty products

3. In the SetTypes tab under Category Data, add REWARD_PRO_LOY as the

SetType

After the SetType is added to the loyalty product category, it will appear

as point information assignment block in the product overview page. Here,

you can maintain point information for Accrual, Redemption and Buy Points

scenarios. You have to select the Scenario, Point Type (Points, Miles etc)

and enter the associated number of points. The following three activities

are supported:

-> AccrualIn this scenario, a customer buys standard products and earns reward points

for his purchase. The actual points to be accrued will be maintained at

product master data level. You have to select EARN as the loyalty

scenario.

Example: We have a product, Laptop T 61, which has 1000 reward points

associated with it, at the product master level. If a customer buys this

product a member activity will be created and 1000 points will be credited

to his account.

Note: You can maintain points for a product with a particular loyalty

scenario in the point information assignment block of product overviewpage. This is an optional activity. In many cases, the points accrued will

not be maintained in the product master data but will be determined based



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on reward rules. In such cases, you do not have to maintain the SetType.

-> Buy Points

This functionality enables a customer to purchase points. The point value

of such products will be maintained at product master data level under the

point Information assignment block. You have to select BUYPOINTS as the

loyalty scenario. This activity is mandatory for Buy Points scenario.

-> Redemption

In this scenario, a customer redeems his points to buy products. In CRM

7.0, redemption products have 100% discount and can be bought only by

points. The point value of such products will be maintained at product

master data level in point information assignment block. You have to select

REDEEM as the loyalty scenario.

Example: We have a keyboard HT-1010, which has a price of 5000 points (and

100% discount). If a customer buys this product, a member activity will be

created and 5000 points will be deducted from the customer's account.

Note:

Point information is maintained for 1 base unit of product .If the quantity

and unit of measure are changed, the points will be calculated accordingly.

Redemption functionality in Ehp1 for CRM 7.0

In case of redemption, you have three payment options to choose from. You

choose the payment option in the customizing activity Define Mixed Payment

for Sales Order Integration. For more information, see SAP Customizing

Implementation guide Customer Relationship Management Marketing

Loyalty Management Channel Integration Define Mixed Payment for Sales

Order Integration

a) Fixed redemption value from Product Master

The point information will be picked from the SetType as explained above

and 100% discount will be given at item category level. Attached is the

screenshot of the same.

Using Pricing Process, you can select whether normal pricing is executed or

100% discount is given.

In addition to the above-mentioned setting, a 100% discount condition

should be included in the pricing procedure. For this purpose, you can use

the standard condition 0R10 in the pricing procedure.

b) Mixed redemption using Conditions and IPC

With Ehp1 for CRM 7.0, mixed payment functionality is available. This

enables a consumer to pay with points and money in a single sales

transaction. You can maintain point prices as conditions in product master

data under the Prices assignment block. The condition type

0LM1 with condition tables SAP002, 003 and 004 are used to maintain these

point conditions as seen in the screenshot below. Select the option

'0LM1_LM_SAP002' from the dropdown.

Select 0LM1_LM_SAP002 from the dropdown.

In the above screenshot, Price in Points = 100% point price , Max Price in

Points = maximum points a consumer can spend, Min Price in Points = minimum



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points a consumer should spend for this product.

Note:

In the above scenario, entries in Point Information assignment block will

not be considered for redemption but the information will be picked from

the conditions.

A new usage LM is developed for points as conditions. You can use the

customizing activity Condition Technique: Basics to develop condition

tables, access sequences, condition types and point procedures.

For more information, see SAP Customizing Implementation guide Customer

Relationship Management Master Data Conditions and Condition Technique

Condition Technique: Basics

You can create condition objects with application CRM and usage LM. The

point procedure 0LM001 is delivered and can be used in a sales transaction

using the below the customizing Determine Point Procedures. Point

information will be fetched by executing this procedure. For more

information, see SAP Customizing Implementation guide CustomerRelationship Management Marketing Loyalty Management Channel Integration

Determine Point Procedures

You can assign this point procedure to a particular sales org, distribution

channel, division, customer pricing procedure and document pricing

procedure the same way it is done with pricing procedure.

If you decide to use only points in a sales transaction (consumer has to

pay 100% point price always), a standard pricing procedure with 100%

discount would suffice. If you want to allow mixed pricing, for example, a

consumer can pay anything between 1000 to 2000 points and rest in currency,

then condition type 2902 (point based discount) should be included in the

pricing procedure and 100% discount should not be chosen at item category

level as explained above. The conversion rate between points and currency

can be maintained in CRM UI in the following manner:

1. Go to Loyalty Management

2. Select Prices

3. Choose 2900 as the Price Maintenance Group

Attached is the screenshot of the same. Here 1 USD is maintained as 1

point. Product specific conversion rates are also allowed.

Condition type 2901 is the reference condition type for 2902 and 2903 (used

in flexible order and is described later in the section flexible order).

Scales can be maintained for the conversion rates. For example, for the

first 1000 Points it is 0.5 USD per point. From 1000 to 2000 points, it is0.75 USD per point and from 2000 points onwards, it is 1 USD per 1 Point

Example of Sales order

Here, a product TV-1000 is maintained with Point price as 1000 Miles and

Min Point price as 500 miles and Max point as 1000 Miles.

A consumer purchases this product using a redemption transaction and spends

500 points. With a conversion rate of 1 USD equal 1 point, the net value

becomes 500 USD + 500 Miles.

If consumer spends 1000 Miles, the net value will be 0 USD + 1000 miles.

Similarly, various combinations of maximum price and minimum price can be



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maintained in Product master and accordingly consumer can use his points to

redeem products.

c) Mixed payment using Flexible order

If you do not wish to maintain point prices for individual products due to

high volume of products, specifically in retail, then they you select this

option where during the checkout, consumer will be given the option to use

his points. Discount will be given based on the points spent at an item

level. In this case, the only thing you have to maintain is a fixed

conversion rate (condition type 2901). The transaction type will be the

same as accrual.

For example, a consumer purchases a product HT-1000 on which he can earn

1000 special points. During checkout, he will be asked to use his points.

Use Point Payment will be enabled, and he can enter points he wants to

redeem.

If he decides to use 500 points, then a discount will be given to him basedon the points spent. Here, with a conversion rate of 1 USD equal to 1

point, 500 USD discount will be given and accrual information will be lost.

Hence, the points spent will be equal to 500.

Discount Based on Member Basic and Lifetime Tiers

In accrual transactions, discounts can be given to members who have reached

a particular tier (Basic and Lifetime tiers). This can be maintained as a

condition using the following steps:

1. In CRM UI, go to Loyalty Management

2. Select Prices

3. Choose 29MD as the Price Maintenance Group

Here, we can maintain the percentage discount on a product for a particular

basic and lifetime tier.

The condition type 29MD should be included in the pricing procedure of

sales transaction to provide discounts. In sales order processing, you can

check the discount under the assignment block Price Totals on the overview

page. In this case, a 2% discount is given based on the above condition as

shown in the third row)

Generation of Billing Documents

Once a sales order is created and saved, you can generate a billing

document as a follow up activity. For loyalty sales transactions, thefollowing three new fields are added to the billing document.

-> Points

-> Point type

-> Points spent

In Accrual and Buy Points scenarios, Points = Points accrued; Point type =

Miles, points etc; Points spent = 0

In redemption scenarios, Points = Total point price; Point type = Miles,

Points etc; Points spent = points spent by the consumer

To generate billing document from a sales order, you have to select arelevant billing option for the item category.



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In this case, we have selected Transaction-Related Billing According to

Order Quantity. The billing will happen via CRM Billing.

Note: Only CRM Billing is currently supported

As billing will happen only if the order is replicated successfully to ERP

(where shipping, delivery and logistics will be done), you have to ensure

that all the master data, for example, products, BP (sold to party),

conditions, etc are present in ERP along with the transaction type and item

category (for example, LTAA and LTAN).

Once replication is complete, we can create a billing document from the

sales order overview page. Select Create Follow-up and choose Billing.

-> Customizing in SPRO

You have maintained the following customizing settings in SPRO:

-> In the customizing activity Define Point Types for Sales-Order

Integration, you maintain point types. For more information, see SAPCustomizing Implementation guide Customer Relationship Management

Marketing Loyalty Management Channel Integration Define Point Types

for Sales-Order Integration

Point Information in product master can be maintained only for these point

types.

-> In the customizing activity Define Categories and Types for Sales Order

Integration, you maintain member activity category, activity type, sales

order status for which activity will be created and the processing delay

(Process On Hold) for a particular loyalty scenario. For more information,

see SAP Customizing Implementation guide Customer Relationship Management

Marketing Loyalty Management Member Activities Define Categories and

Types for Sales Order Integration

-> In the customizing activity Define Transaction Types, you maintain the

transaction types for accrual, redemption and buy points. For more


Relationship Management Transactions Basic Settings Define Transaction

Types

Note:Reference transaction types LTAA, LTAR and LTAB are delivered for CRM IC

and UIU. For web channel, transaction types ISLA, ISLR and ISLB are

delivered.

You can create new transaction types on project basis but transaction

classification should be maintained as A, R and B for accrual, redemption

and buy points transactions respectively.

For redemption transaction LTAR, the item category is LTAR where the

pricing process is maintained as 100% discount. Therefore, the net value

will always be 0 for redemption items and only points will be charged. You

have to maintain the condition 0R10 in pricing procedure. The pricingprocedure 0CRM01 contains the details of condition 0R10. If you do not

maintain 100% discount, then additional currency price will be displayed.



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For example, $200 + 100 MILES.

Billing and delivery related customizing has to be done on a project basis.

-> In the customizing activity Assign Product Hierarchy for Sales Order

Integration, you register the product hierarchy if it is not the same as

sales operation hierarchy. For more information, see SAP Customizing

Implementation guide Customer Relationship Management Marketing Loyalty

Management Channel Integration Assign Product Hierarchy for Sales Order

Integration

This customizing will help you create reward rules based on product

categories and process them during creation of member activity using sales

order.

-> In the customizing activity Determine Pricing Procedure, you maintain

29CRLM as the pricing procedure for loyalty transactions. For more


Relationship Management Marketing Business Functions Pricing Pricing inthe Business Transaction Determine Pricing Procedure

For more information please refer to the attachment and IMG Documentation.

Header Data

Release Status: Released for Customer

Released on: 29.10.2012 11:28:41

Master Language: English

Priority: Recommendations/additional info

Category: ConsultingPrimary Component: CRM-LOY Loyalty

Valid Releases

Software Component Release From

Release

To

Release

and

Subsequent

BBPCRM 700 700 700 X

BBPCRM 701 701 701 X

BBPCRM 702 702 702 X

BBPCRM 712 712 712 X

Attachments

File

Type

File Name Language Size

PDF LoyaltySalesOrderSetupCRM70.pdf E 88 KB

PDF LoyaltySalesOrderSetupCRM70EhPx.pdf E 299 KB