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.