Note: Customers are categorized into four pricing tiers (A, B, C, and D) based on sales volume over the past 12 months.
Promotional fund and Trade allowance agreement
A trade allowance agreement is an incentive program where pay-for-performance monetary rewards are offered to customers that achieve specific volume targets and/or behavioral goals. Promotional funds are budgeted expenditures. In that way, the promotional campaigns can be captured.
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