Gross Margin Management


B2B organizations distributing their products through partners rely on channel incentive programs to support and grow revenue, including rebates and SPIFFs. Managing, implementing and ensuring compliance for channel incentive programs is a complex and time consuming task. It is virtually impossible to effectively promote, manage and measure the success of rebates, SPIFFs, or other channel incentive programs via manual processes and ad hoc systems. The lack of streamlined and automated processes can lead to incorrect overpayment of claims, potentially costing thousands or millions of dollars each year. Incorrect channel incentive management can also lead to incorrect revenue recognition and sales commission payments.

Automate and streamline the rebate management cycle

Entomo automates and streamlines the entire “request-approve-claim-validate-authorize-payment” cycle. Regardless of the type of channel incentive, the process starts with the partner requesting or registering for a rebate or other incentive program by using Entomo’s SmartHub® Partner Portal. The request is then auto-routed for approval. Once the approved activity has been performed, claims are submitted via the Partner Portal and automatically validated and authorized for payment or credit. If a claim is rejected, you can review the claim details and perform a manual override if necessary, with comments and an audit trail. Payment authorizations are automatically transmitted to the appropriate financial system for payment.

FULL rebate Program MANAGEMENT

Configure multiple global rebate, SPIFF, or other incentive programs in SmartHub. There is no limit to the number of programs that can be configured.

Incentive parameters that can be defined include but are not limited to:

  • Product
  • Time period
  • Accrual rates
  • Thresholds
  • Payment caps

These program definitions are used along with transaction data to determine fund or rebate accruals. SmartHub provides the ability to do automated accruals and authorize payments, without the partner having to make an explicit claim.


  • Streamlined and automated process for request-approve-claim-validate-authorize-payment cycle
  • Configure rebates and other incentive programs based on partner type, product type and other criteria
  • Understand true performance of rebates and channel marketing programs
  • Eliminate claims overpayments
  • Automated accrual and authorize payments


Double-dipping and claims overpayment are reduced dramatically with Entomo’s rebate compliance controls, fed by cleansed and normalized POS data in real-time. Entomo not only enables accurate and timely claims payments, commission payments and revenue recognition, it also provides sales, finance and marketing teams with pertinent insights for their functional areas, such as program accruals/exposure, program utilization and program ROI. Use utilization metrics and ROI of current and past rebate programs to develop and fine-tune strategies for designing and managing future programs. Incentive data and statistics can also be used for objectively measuring partner performance.

Rebate and SPIFF performance analytics can also be integrated into the channel analytics and dashboards module.


Fully integrated financial management

All channel incentive activities seamlessly feed Entomo's Sell-Through-Revenue-Recognition module to allow calculation of revenues net of back-end rebates. This ensures the correct G/L journal entries are booked for incentives that are expenses (i.e. co-op funds) and those that are reductions in revenue (i.e. Ship and Debit programs).


Terms and definitions

A rebate is a type of sales promotion. Buyers or distribution partners receive a reduction or refund on product by taking certain actions or meeting defined performance criteria.

Type of Rebates

  • Volume, Score-Based and Other Rebate Programs
    A back-end discount provided to channel partners based on certain criteria like sales volume, customer satisfaction or other performance scores.
  • Pass-Through Rebates (PTR) and Teaming Agreements
    These programs provide preferred pricing to resellers in a multi-tier channel model. The distributor sells to the reseller at a discounted price and then claims the rebate from the manufacturer.
  • Loyalty and Rewards Programs
    Similar to volume rebate programs in terms of accruals based on sales volumes. However, earnings are usually in “points” or some other non-monetary units. Similarly, payment is usually "in kind”—free demo units, training credits, gift cards to company store, etc.

SPIFF is an acronym that stands for Sales Performance Incentive Fund. In common usage, SPIFF or SPIV are also used. A SPIFF is an immediate bonus for a sale. Typically, SPIFFs are paid directly to a salesperson for selling a specific product by either the manufacturer or channel partner. SPIFFs are generally short-term incentives targeted at individual partner sales reps, aimed at accelerating sales of a particular set of products within a specific span of time.

In these cases, channel partners already have the product in stock and may have paid for the inventory. Rebate and SPIFF programs generally follow the same basic process as other channel incentive programs:

  1. Request: Channel partner requests a custom program or participation in a generalized market program.
  2. Approve: The request is either approved or declined by the manufacturer.
  3. Claim: Partner or end customer submits a claim to the manufacturer for the rebate or SPIFF payment.
  4. Validate:  The vendor or manufacturer must confirm the claim is valid.
  5. Authorize:  Valid claims are authorized for payment.
  6. Payment:  Reimbursement/payment of the claim amount to the channel partner or end customer.
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