Promotional Allowance Math: Win the Audit Later

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.

What’s at stake: over-billed cooperative advertising (co-op) and billbacks can quietly eat 1–2 points of margin if proofs aren’t airtight.

Fictional example (for illustration): A snack brand funded an endcap and digital ads. The retailer billed the full “rate card,” but the endcap was half-stocked, and the ad ran one day shorter than scheduled. Because the supplier had time-stamped endcap photos and screenshots of the ad flight, they won the appeal and shaved the billback by 38%.

Proofing tips to defend spend (and block retro debits)

1. Ads (digital + print)

   • Save date-stamped screenshots of the ad creative, the landing page, and the traffic source tags (e.g., tracking links).

   • Store the approved media plan, insertion order, and negotiated rates in one folder per event ID.

   • Compare planned dates vs. actual impression windows before approving invoices.

2. Endcaps and in-store displays

   • Capture geotagged, time-stamped photos at install + mid-week + end of week.

   • Include at least one wide shot (full bay) and one close-up (price tags, correct pack/size).

   • Note any out-of-stocks that would impair lift; log the time you reported them.

3. Product Detail Pages (PDPs)

   • Take a screenshot of the full PDP showing price, promotion badges, and correct pack/size.

   • Record start/stop times for price changes; archive a copy when the page flips back to regular price.

   • Track search placement or featured modules if they were part of the funded plan.

4. Math alignment

   • Maintain a rate card by retailer: co-op rates, market development funds (MDF), slotting, and any handling fees.

   • Accrue to signed events, not “handshake” emails. Tie each deduction to the event ID and purchase order (PO).

“Win the audit” package (what to assemble now)

• Event file: Signed terms, rate card, and testable objectives (units, lift, dates).

• Proofs: Screenshots (ads, PDPs), endcap photos, and store lists.

• Reconciliation: Planned vs. actual dates, rates, and placement; note variances.

• Financials: Accruals by week and by PO; invoice copies matched to the exact proof.

Quick checklist

• One folder per promo with event ID

• Screenshots and photos with timestamps/geotags

• Rate card verified before the event starts

• Accrual ties to signed plan, not email

• Variances documented before you pay invoices