ABC's of Trade Deductions and Settlement Methods

Lessons

1. Purpose and Customer Types Involved in Trade Deductions

2. How are the Deal Documents Documented

3. What are the Three Trade Settlement Methods

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Duration 30 Min
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Lessons 3 Lessons
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Language English
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Course Overview

Trade Deductions are an integral part of the company. The fact that businesses face the wallop of revenue loss is hard to deny. Companies offer these discounts and benefits to customers to increase sales. This scenario is different in b2c companies, here offers such as buy 3 get 1 free is used for promotion. Whereas, in b2b companies, trade deductions arise from promotions, discounts, and advertising. An entry-level deduction professional needs to research and resolve these deductions. A typical process of one such deduction proceeds with understanding two initial steps. The first one being the purpose of trade, and the second one being the types of customers involved in the deal. This helps them in understanding what is the purpose of trade and how deductions professionals could track money the amount of money their company spends on trade promotions per deal. The next important step in decoding disputes requires unraveling two procedures. The first one being the Trade Promotion Management (TPM), and the second being the deal documents. This provides an understanding of the software systems the sales team uses in the organization. This software helps in the development, execution, and management of sales promotions. Along with this comes the Deal sheets/agreements. Its use is to document the final agreement recognized by both parties. This agreement comprises of a deal on how trade funds would get used. The final step in a trade deductions management process is the vital settlement processes. Trade settlement is a two-way process that comes in the final stage of the transaction. These settlement processes are off-invoice, deduction, and the promotional check. This tutorial has covered all these steps and functionality in detail that would help deductions professionals better manage trade deductions.

What you will learn

  • Purpose and customer types Involved in trade deductions
  • How are the deal documents documented
  • What are the three trade settlement methods

Skills you will gain

Identifying the Purpose of Trade
Customer Types Involved in Trade Deductions
Process to Document Customer Deals
Trade Deductions Settlement Process
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Role: Deduction Analyst
Designed for Deductions Managers
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Level : Foundation Course
Designed to educate entry-level professionals
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Topic: O2C Essentials
O2C domain-specific training course
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Type: Practical Course
Modules with both theoretical and application based lectures
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Completion Time: 30 mins
Suggested reading for 20 mins per day

1. Purpose and Customer Types Involved in Trade Deductions

Are you curious to find out the real purpose of trades that occur? Wish to know which customer types are involved in these trade deductions activities than mark 50% of overall deductions? Watch this tutorial by Highako to get a clear understanding of the process set up and functioning.

2. How are the Deal Documents Documented

How does your organization document deals? As a deductions practitioner, are you successful in communicating the deal documents with your customers? Watch this tutorial to learn what to include in a deal document for your customers.

3. What are the Three Trade Settlement Methods

How do your customers receive the money you owe to them as a part of the trade settlement? Do you know about the three categories of trade settlement that helps you avoid any errors? Watch this tutorial to learn the functioning of these trade settlement methods.

Lesson Resources

Kimberly Erickson

Kimberly Erickson

Owner, Principal Optimize Consulting
Kimberly consults with companies in the manufacturing industry to improve accounts receivable processes, implement or adjust systems, lower balances, and reduce cost to operate, all while managing employee engagement for long-term success.

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