Executive Summary provides a high-level overview of a proposal trading program before approval, giving your key stakeholders easy access to valuable information about the trading program. This allows you and your team to review the impact of modifying agreement conditions in real time and determine whether the proposal is better, equivalent to, or less lucrative than the previous one.
Executive Summary streamlines the process of reviewing and approving programs, allowing you to assess the value of a proposal before signing and activating it.
This article will guide you through:
Looking for something else?
- Looking to sign off a trading program? Learn how to approve or reject a program using Executive Summary here.
- Alternatively, see our Help Center for more on trading programs.
Executive summary
The Executive summary page is divided into seven different sections: trading program details, comparison period, new period, trading program and program line performance, terms item changes, and baseline comparison.
Trading program details
The first section displays the trading program details, including the reference, period, lead user, and a written summary populated from the trading program notes (if applicable).
Note: The program summary is completed by the program lead during the Supporting Documentation step in the To-do list.
Comparison period
The Comparison period section provides a detailed breakdown of transactions and earnings from the selected comparison trading program, including an earnings breakdown by program line.
The Total transactions tile displays the total transactions from the comparison period. Click on the tile to display the split between actual and forecasted transactions.
- If there are transactions on the final day of the trading program, it will display the total applicable transaction value for the program lines in the comparison agreement, with duplicates removed. This means that if a single transaction is linked to multiple program lines, it will only be counted once.
- If there are no transactions on the final day, the value will be an estimate based on the transactions so far. This estimate is calculated by the following calculation:
The Comparison period earnings tile displays the sum of the forecasted earnings displayed in the program line breakdown. If all periods have locked, meaning the forecasts have been replaced with actual numbers, the figures will match the actual earnings for each program line.
New period
The New period section provides a breakdown of transactions and earnings from the current proposal, along with any other trading programs selected for the new period. It also includes an earnings breakdown by program line.
The tiles displayed in the New period section are:
- Forecast transactions: Calculated using the current transaction value for the new period, estimating the total forecasted transactions for the entire period using a linear projection (similar to comparison period transactions). Click on the tile to display the split between actual and forecasted transactions. Note: If no applicable transactions have occurred during this period, the forecasted transactions will be displayed as zero.
- New period earnings using new period’s transactions: The sum of the forecasted earnings from the program line breakdown. This represents the sum of the forecasted earnings for each program line based on transactions from the current period. If all periods have been locked, the numbers will reflect the actual earnings for each program line. These figures are calculated using the current forecasts from the Forecasting app for each program line. Note: If the Forecasting module is not enabled, Enable will use the legacy linear forecasting formula above by default.
- New period earnings: The second new period earnings tile is calculated using total earnings for the new period based on baseline figures. This is the sum of the forecasted earnings for each program line based on baseline transactions from the previous period. These figures are calculated using the initial forecast in the forecasting app for each program line. Note: If the Forecasting module is not enabled, Enable will use the legacy linear forecasting formula above by default.
Tip: The rebate figures for the new period reflect the full length of transactions for the entire trading period (e.g., January to December), even if the new period transactions are only calculated up to the current date. As such, the effective rate may appear more favorable during an incomplete period. For example, if the agreement matches last year’s, baseline and prior transactions may align, but new period transactions only reflect year-to-date activity, while rebates are calculated for the full period, making the effective rate appear higher.
Trading program performance
Trading program performance provides a high-level comparison of total transactions from the comparison period against the baseline transactions for the new period.
Similarly, it compares earnings by totalling the earnings for each program line in the comparison period and comparing them to the baseline figures for the new period.
The effective rate is the proportion of spend earned in rebate, calculated using the rebate amount (total earnings) divided by the total transacted value.
Note: The effective rate may be misleading in certain cases because the new period only considers baseline transactions year-to-date, while the rebate calculation uses full-period transactions.
Program line performance
Program line performance displays a detailed breakdown of program lines for the new period including transactional values, rebate amounts, band hit details, and the effective rate (only applicable if the program line uses a targeted mechanism).
By default, this displays baseline figures. To view forecasted figures instead, click on the Baseline button to switch to the forecast view.
Note: The numbers are sourced directly from the program lines, either based on baseline data or actual forecasts.
Terms item changes
Terms Item changes displays a comparison of terms and conditions between the comparison and new period trading programs, highlighting any changes.
Tip: Use this to quickly review and compare the terms of both trading programs to identify any changes or necessary updates.
Baseline comparison
Baseline comparison displays a comparison between baseline transactions and earnings for the new period against the total earnings from the previous period, highlighting the monetary difference between the two figures.
Tip: Use this to understand how much more or less rebate the new trading program would generate if spending is the same as in the previous period.
Overview
The Overview page provides the current state of the trading program. This includes details such as the trading program lead, the creator, a timestamp of when it was created, and the workflow status, among other relevant information.
Tip: Click on the trading program document on the right of the page to download the trading program PDF.
Notes
The Notes page allows you to review internal notes and comments that were added during and prior to the signing process.
These notes are not visible to the trading partner. Internal-facing attachments may have also been added, e.g. proof of signatory. The program lead can add attachments during the Supporting Documentation step before confirming the workflow.
Tip: When the trading program is in the workflow, this section is a place to document any offline conversations with the program lead during the approval process. For example, it can include answers to questions you've asked for clarification or other inquiries they've made to the buyer.
Note: The trading program notes can be added in the Settings page of the program and will also be displayed on the Notes page of the approval process.
Earnings
The Earnings page displays the calculated baseline earnings for the new proposal. If any divisions are configured, those earnings will also be displayed here.
Tip: If net spends are enabled for this trading program type, these are displayed on the Earnings page instead of baseline earnings. You can also manually input your net spends for each division. Net spends are the predicted spend with the trading partner for this trading program.
Approval hierarchy
The Approval hierarchy page allows you to verify that the hierarchy and mapping of workflow roles are correct. Each circle next to a user displays one of the following colors:
- White: The user has not yet approved the trading program.
- Green: The user has approved the trading program.
- White with a green outline: The trading program has been signed off on behalf of this user.
- Grey: The workflow approval is waiting on a user from this role to sign off the trading program.
Trading partner sign-off
The Trading partner sign-off page displays the details of the Collaborator user who approved the trading program, including any supporting documents if applicable.
This page will be blank until the trading program is with the Collaborator for sign-off and has been signed off by the trading partner.
Note: If the trading program was signed on behalf of the trading partner, this page will display the details of the collaborator user that the trading program was signed off on behalf of. When sign off on behalf of a Collaborator is used, the trading program is activated but will remain with the Collaborator for signing.
What’s next?
Ready to start the approval process? Learn how to start the approval workflow using executive summary here.