A promotional allowance is a supplier-funded discount, credit, or payment tied to a specific promotional campaign or period. It is typically time-bound and requires evidence of qualifying promotional activity from the beneficiary.
How promotional allowances work
The supplier and buyer agree a specific promotional window, a discount or funding amount, and qualifying activity (advertising, display, price cut). The allowance is settled based on evidence of activity - creating a distinct reconciliation cycle from standard rebates.
Why they are hard to track
Each promotion has its own terms, its own window, and its own evidence requirements - creating administrative complexity that traditional systems handle poorly. Structured contract data attached to each promotion enables systematic tracking.
