Transaction Valuation, Channel Incentives, Inventory Reconciliation, and Revenue Recognition Activities
Can you really manage gross margin? In the channel business - you bet. Reducing price erosion and erroneous overpayments are but two ways to positively impact gross margin and top-line revenue.
The set of activities relating to managing, implementing, and ensuring compliance for channel incentive programs is complex and time consuming. Entomo provides an automated, systematic process to manage all types of channel incentive programs and related transaction-based financials which impact gross margin and top-line revenue.
Gross Margin Management Solutions
Entomo supports a wide variety of channel incentive programs, including:
- Rebates, SPIFFs, co-op, and MDF programs;
- Pricing compliance programs like Ship-and-Debit, Special Pricing; and
- Quoting or price protection programs, including 'rights of return' scenarios.
Entomo’s SmartHub® also manages critical financial functions related to channel activities. Our Transaction Valuation module enables you to precisely assign specific cost to specific product sold - critical to proper sell-through revenue recognition and getting an accurate channel inventory picture.
Sale-in-Sales-Out (SISO) inventory reconciliation enables precise inventory measurement to validate partner reporting, prevent fraudulent claims, and proactively manage overall channel inventory levels. You can also create accruals and make payments for channel incentive programs without requiring explicit claims from the partner, directly from SmartHub. Do all this while staying in compliance with industry revenue recognition mandates.
"Our channel information was scattered and incomplete. In 60 days, Entomo was able to consolidate information and give us a detailed view of our channel sales and inventory position. As a result, our channel business grew in volume and profit through better decision making."
- Tony Grieco, Vice President, Sales, PLX Technology