Trade Promotion Proof Packets—Defend Your Trade Spend
- The HRG Team
- 13 hours ago
- 3 min read
Holiday promotions feel like momentum in November.
In January, they can feel like a math problem you didn’t agree to.
This is the season where promotional allowances, billbacks, co-op, and “did it execute?” disputes start surfacing—often through deductions that arrive long after the display came down and the emails went quiet.
And because trade spend is so large, small documentation gaps can turn into big dollars. One analysis noted that the average consumer packaged goods (CPG) company allocates about 14% of total revenue to trade promotion activities.
That’s why post-event promo audits matter. You’re not debating pennies. You’re defending one of the biggest line items on the profit and loss statement.
Why trade promotion deductions spike after Q4
1) Promotions get proven after the fact.Retailer audit teams often verify later: “Was it authorized? Did it run? Did the item list match? Did pricing files align?”
2) Discounting pressure keeps rising.Deloitte’s consumer products outlook noted that 76% of surveyed executives plan to offer more sales discounts and promotions (referencing 2025 plans).More promos = more transactions = more chances for mismatch.
3) The evidence is scattered.Sales has the email approval. Marketing has the creative. E-commerce has the product detail page (PDP) screenshots. Finance has the deduction. Nobody has the whole story in one place.
A fictional example (because this is painfully common)
Fictional scenario: A supplier funds a holiday feature with a specific item list and dates. In January, a deduction hits for “promotion not authorized.” The Sales lead swears it was approved—because it was. The approval is sitting in a forwarded email chain with an attachment… that never made it into a shared folder.
So the team spends six hours recreating a paper trail that should have taken six minutes.
That’s not a capability issue. That’s a system issue.
The fix: build a “promo proof packet” before the deduction arrives
Think of this like insurance you actually use.
For every meaningful promotion (especially Q4), build a single folder or PDF bundle with:
1) Authorization and terms (the “contract”)
Retailer agreement or promotion form
Dates, item list, funding type (billback, scanback, lump sum, etc.)
Any compliance requirements tied to funding
2) Item and pricing truth (the “math”)
Universal product code (UPC) / item numbers
Baseline cost, deal cost, and effective dates
Proof of price file submission/acceptance (when available)
A simple invoice map: which invoices were included in the deal window
3) Execution evidence (the “did it run?”)
Photos (store, endcap, signage) when possible
Retail media proofs (ad, email, on-site placements)
Product detail page (PDP) screenshots for e-commerce promos
Store lists or eligible location lists (if the promo was regional)
4) Post-event reconciliation (the “closeout”)
Expected vs. actual units/dollars
Notes on exceptions (late loads, substitutions, out-of-stocks)
Who owns open issues and by when
This packet does one thing extremely well: it turns a future argument into a present record.
January best practice: run a promo “after-action” within 10 business days
If you wait until February, your evidence quality drops fast.
A tight after-action agenda:
What deductions have already hit?
What promotions have high audit risk (complex item lists, regional execution, cost changes)?
What documentation is missing right now?
What should be standardized before the next big event?
You’re not just defending the past. You’re tightening the next cycle.
Where HRG fits (without the hard sell)
HRG’s view is simple: promo deductions are rarely “just finance.” They’re cross-functional.
When promo disputes are handled with a consistent proof packet and clean invoice mapping, recoveries go up—and the team stops re-litigating the same story every quarter.
If your organization is heading into January with heavy Q4 funding, a low-effort, high-return move is to standardize the promo proof packet and identify the promotions most likely to be audited.
That’s how trade spend stays strategic instead of slipping into leakage.
