Siebel Consumer Sector Guide > Deductions > Business Scenarios >

Managing Promotions Deductions

Karl Mann, the key account manager for a food and beverage manufacturer, is setting up a promotion to feature your company's line of gourmet coffee products at a chain of grocery stores. The promotion includes a provision to reimburse the grocery chain for the cost of purchasing newspaper advertisements and creating signs to publicize a sale on your coffee line. Rather than authorize a payment to cover the advertising and sign expenses, Karl arranges for the grocery chain to deduct those costs from the next invoice it receives from your company.

Next, Karl opens the Siebel Consumer Sector application to preauthorize the deduction. He selects the plan he created for fall promotions at the grocery chain and adds a new record for the gourmet coffee promotion. After entering relevant information about the promotion, he enters the names of the four gourmet coffee products and allocates funds for each individual product. He allocates $2,500 as the cost of promoting one product (one-fourth of the total promotion cost). Within the fund allocation record of each coffee product, he preauthorizes the deduction.

One month later, the grocery chain returns its payment for a $45,000 invoice from your company. It sends your company a check for $35,000, along with a debit memo referencing the deduction. The accounts receivable department notes the $10,000 discrepancy, and passes the information to the marketing administrator.

The marketing administrator creates a deduction record in the Siebel Consumer Sector application, and attaches the debit memo to the deduction record, along with a fact sheet about the corporate promotion. Although the marketing administrator also assigns the deduction to Karl Mann, the entire account team has visibility to the deduction.

The next day Karl brings up the list of deductions for the accounts he manages, and sees the new deduction record. Since he preauthorized the deduction when he allocated promotion funds, the allocated funds are available to resolve the deduction.

Karl researches the deduction, including verifying the terms of the promotion on the fact sheet attached, and resolves the deduction by applying the fund allocation to cover the $10,000.


 Siebel Consumer Sector Guide 
 Published: 18 April 2003