Chargebacks & Deductions
What is trade spend and is it a deduction?
Trade spend is the money a brand commits to a retailer to drive sales: promotional discounts, advertising and display funding, slotting fees, and volume rebates. It usually arrives as a deduction from payment, which is why it looks like a penalty on a remittance even though it was agreed in advance.
Trade spend is frequently the largest line after cost of goods and the least accurately tracked, because the commitment sits with sales and the deduction lands in finance months later.
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