CONTRACT COMPLIANCE AUDIT OPPORTUNITY
INCENTIVES AND PROMOTIONS
Industry Knowledge
ales incentives, instant or mail-in rebates, sell-through allowances, cooperative
advertising, and myriad other monetary promotions make up a comprehensive incentive
campaign. World-class organizations know that profit and performance depend on
whether such incentives are aligned among players in the supply chain. An unbalanced
campaign may result in excess inventory, out-of-stock events, incorrect forecasts, or poor
customer service.
Failing to fully test an incentive program post-compensation can also lead to ill effect in terms of
a significant loss of sales revenue. in3 reviews claim processing and complex promotional costs
to identify errors and ensure incentive programs fulfill their promise.
Operational Challenges
Miscalculated SPIFFs, faulty claims tracking,
overstated available funds, and missed dates or other
incentive parameters can easily go unnoticed when
there is a large volume of transactions to process.
Complicated pricing structures and an array of factors
–
such as qualifying purchases, notification periods,
deal modifications, price and inventory changes and
unscheduled bonuses – can be costly to verify.
Overlapping agreements are a compliance headache
when it comes to settling discounts, allowances, and
promotional claims.
The Opportunity
in3 reverse-engineers the terms and conditions of
multi-layered incentive programs and establishes
client-specific audit angles to test compliance to
program provisions. in3’s audit experts review 100
percent of transaction data to spot miscalculations and
overpayments.
Incentive audits exclude reverse transactions (such as returns and inventory transfers), reveal
hidden chargebacks, uncover duplicate payments, and confirm whether transactions fall within
promotional scope (e.g., transaction timing, geography, and bundling qualifications). in3 reports
on variances it finds within incentive claims, recovers excess payout, and brings new visibility
and transaction accuracy to incentive programs.
Contact Tom Bennett, in3’s chief operating officer, to discuss deep-dive audit
opportunities for incentive- and promotion-related transactions.
tb@in3corp.com or call +1 (303) 448-1191 x 102
in3corp is an independent audit firm with worldwide operations for recovering cash, preventing future excesses or
shortfalls, and providing tested services such as supply chain and contract compliance auditing and royalty
verification. in3corp identifies specific opportunities for cost recovery and increased controls and provides visibility
into business operations and supplier relationships to help clients save money.
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