Book a demoAccruals & Claims
From Posting to Recovery
Master the critical financial processes of trade promotion management. Learn how to maintain accrual integrity, execute flawless monthly closes, and optimize claims recovery for maximum financial performance.
Types of Trade Accruals
Understanding the different types of accruals in trade promotion management
Promotion Accruals
MonthlyEstimated costs for active trade promotions
Key Factors:
Example:
BOGO promotion: 50K units × $2.00 × 50% = $50K accrual
Volume Rebate Accruals
MonthlyEstimated rebates based on volume thresholds
Key Factors:
Example:
2% rebate on 100K+ units: 120K units × $2.00 × 2% = $4.8K accrual
Co-op Advertising Accruals
MonthlyEstimated costs for cooperative advertising programs
Key Factors:
Example:
50% co-op on $10K ad spend = $5K accrual
Slotting Fee Accruals
QuarterlyEstimated costs for shelf space and placement
Key Factors:
Example:
$500/month × 3 months = $1.5K accrual
Monthly Close Checklist
A systematic approach to accurate and timely accrual management
Pre-Close (Days 1-5)
Phase 1Accrual Calculation (Days 6-10)
Phase 2Validation & Review (Days 11-15)
Phase 3Posting & Reporting (Days 16-20)
Phase 4Types of Claims & Recovery
Understanding different claim types and their recovery characteristics
812 Deductions
Standard trade promotion deductions
Key Requirements:
- Valid promotion agreement
- Proof of performance
- Correct calculation
Common Issues:
- Missing documentation
- Calculation errors
- Timing disputes
Co-op Advertising Claims
Claims for cooperative advertising programs
Key Requirements:
- Ad placement proof
- Invoice documentation
- Approval records
Common Issues:
- Incomplete ad proofs
- Unauthorized spend
- Rate disputes
Slotting Fee Claims
Claims for shelf space and placement fees
Key Requirements:
- Shelf placement proof
- Duration verification
- Rate agreement
Common Issues:
- Placement disputes
- Duration disagreements
- Rate variations
Volume Rebate Claims
Claims for volume-based rebates
Key Requirements:
- Volume verification
- Threshold achievement
- Rate calculation
Common Issues:
- Volume disputes
- Threshold timing
- Rate application
Recovery Timeline Optimization
Best practices for fast and effective claims recovery
Claim Receipt
Day 1Key Activities:
Success Factors:
Documentation Review
Days 2-5Key Activities:
Success Factors:
Investigation & Resolution
Days 6-15Key Activities:
Success Factors:
Settlement
Days 16-20Key Activities:
Success Factors:
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