Q1 is the quarter where everyone asks the same question: “Did we actually make money on that holiday volume?” Because the truth usually arrives late—through promotional billbacks, pricing deductions, and post-audit debits that land weeks (or months) after the product shipped. NRF’s Retail Monitor data showed 2025 holiday sales (Nov. 1–Dec. 31) grew 4.1% . That’s a lot of invoices, a lot of promotions, and a lot of opportunities for the math to drift. And drift is exactly how

1) Split-shipment confusion Holiday fulfillment is messy. Partial shipments are common. The dispute comes when the customer (or retailer’s system) treats “partial” as “missing.” What to save:  shipment IDs, carton tracking, carrier scans by package, and timestamps showing each leg of fulfillment. 2) “Porch claims” and delivery disputes Package says “delivered.” Customer says “never received.” Retailers increasingly push for faster resolutions to protect customer experience—th

Discover how to tackle promo deductions effectively and prevent margin leaks. Learn strategies to manage promo deductions in a tariff-heavy economy.

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The first two weeks of January are when finance teams do something heroic. They take a year of real-world chaos—short shipments, pricing updates, promotions, returns, compliance issues—and force it into clean financial statements.

If you sell into retail, January is when the “customer experience” turns into a finance problem. Returns are the obvious headline. But the sneakier issue is what rides along with returns: disputes, claims, and deductions that show up weeks later on the remittance—often coded in ways that make them hard to validate quickly.

There is something about the last few weeks of the year that makes everyone want a reset. Sales is thinking about new distribution. Operations is thinking about capacity. Finance focuses on cash, margin, and how closely the numbers align with plan. And deductions?

You know the drill. Everyone celebrates the holiday numbers: “Record Black Friday!” “Best Cyber Week ever!” “Christmas sell-through is way ahead of plan!” Then Q1 rolls around. Finance closes the books.Suddenly, the story changes

Year-end is when everyone wants something from you. Finance wants clean books. Supply chain wants frozen forecasts. Sales wants that last push to hit the number. Leadership wants a tidy story for the board. Somewhere in the middle of all this, deductions sit in a report tab called “later.”

If you work in finance, accounts receivable, or accounts payable, you’ve probably seen the promises in your inbox: “Let artificial intelligence handle your deductions.” “Automate disputes end-to-end.” “Close more claims with fewer people.”

Promotions move product. They also generate deductions if your math or your proof is fuzzy. The goal: make promotional allowance deductions match the plan—no more, no less—and be ready to win the audit later.

Cyber Monday is a rocket booster for sales—and a magnet for deductions. When orders surge, small disconnects in marketplace fee math, split shipments, or “porch piracy” claims can snowball into accounts payable (AP) headaches and post-audit chargebacks.

Black Friday moves fast. Price files, promotions, and point-of-sale (POS) syncs don’t always move with it. When they don’t, you get price claims and invoice debits.

Short week. Fewer people. Same (or more) shipments. This is when small misses become expensive. Fictional example (for illustration):  A candy supplier shipped on Thursday with no “owner backup.” A Friday receiving window moved; no one was watching. The truck missed, and On-Time In-Full (OTIF)  penalties landed. A two-minute handoff would have prevented it. Your preflight before you log off Shipment holds & gates:  Reconfirm receiving hours and blackout dates for all active p

Trade spend is supposed to grow sales—not quietly fund deductions. Industry estimates often peg trade spend at 20–25% of gross revenue , yet leakage from unclear terms, mis-accruals, and missing proofs regularly eats 1–2 points of margin. Where the January “surprise” happens. Cooperative advertising ( co-op ) and market development funds ( MDF ) reconciliations arrive with fuzzy backup. “Rate card drift” means the ad ran at a different cost than you accrued. Promo proofs live