Overview of Lump Sum Programs

Manufacturers may have agreements with retailers to incentivize them for carrying out certain trade promotion activities on behalf of the manufacturer.

Lump sum programs are created by manufacturers or wholesalers to offer incentives to retailers for these types of promotional activities. Promotional payments arising out of lump sum programs are accrued as soon as the program becomes active. Lump sum programs are customer-specific and they target only one customer at a time.