SHIP-AND-DEBIT PROGRAM SUPPORT AND COMPLIANCE
We support any type of ship-and-debit program to ensure full compliance for revenue tracking, inventory valuation and sales compensation. When coupled with our Partner Portal or used in conjunction with Entomo's Salesforce integration, channel partners and the OEM channel team will be able to fully engage with pricing compliance processes and drive additional channel sales in real-time.
Entomo’s integrated channel management solution automates and streamlines the entire “request-approve-claim-validate-authorize-payment” cycle, making the process easier to manage and eliminating the risk of overpaying and double-dipping by channel partners. You can design and fine-tune strategies for future channel incentive programs by tracking utilization metrics and ROI of historical programs.
Key Steps and Entomo Ship-and-Debit Capabilities
- Ship-and-debit request and approval
The process starts with the partner requesting a ship-and-debit rebate allowance using Entomo’s SmartHub® partner collaboration portal. The request is then auto-routed to specific individuals at the manufacturer for approval. Requests are evaluated and approved or not. Importantly, ship-and-debit requests can be evaluated and approved based on price history, registered opportunities, and design wins in order to preserve margins and eliminate price erosion.
- Claim submission and validation
Ship-and-debit credits can be calculated with or without explicit claims being submitted by the channel partner. The 3 types of claims enabled and supported include:
- Explicit Claim - formal claims submitted by the channel partner on a separate data feed or form. They can be submitted by email, EDI or uploaded via the partner collaboration portal.
- Implicit Claim - these are claims submitted via the POS feed on a transaction-by-transaction basis, typically in the form of the Ship and Debit number.
- Automatic Claim - these are claims calculated by Entomo's SmartHub as inventory and POS data are collected from channel partners. In this method, SmartHub uses the approved Ship and Debit number and compares it to the required fields of the POS report. If the fields match, SmartHub will automatically accrue the appropriate credit. This method is rapidly becoming the ‘best practice’ since it eliminates errors, is completely auditable, and provides the quickest way to reimburse the channel partner with little or no overhead.
- All ship-and-debit claims are auto-validated against the cleansed and enriched POS reports and the original ship-and-debit approval. This could include part number, quantity, end customer, validity dates, resale price or other mandated fields.
- Review adjustments and payment authorization
For all claim methods, once the automated validation is completed, program administrators can review and adjust claims and authorize payments. Manual adjustments are tracked with an automated audit trail. Payment authorizations are automatically transmitted to the appropriate financial system for payment.
Measuring Ship-and-Debit Program Effectiveness
SmartHub not only enables accurate and timely ship-and-debit claims payments, but also allows incentive data and statistics to be used to objectively measure program and partner performance. You get a comprehensive view of all channel incentive programs and their performance, including ROI and usage metrics, program accruals and exposure. These metrics can also be integrated into the Channel Analytics and Dashboards and/or the SmartHub Business Discovery and Intelligence Module.
Entomo’s Customer Success team is always available to help OEMs manage incentive programs, establish “best practices” and aid in completing the cycle of validation and payment.
Channel Incentive Program Process
Ship-and-debit programs generally follow the same basic process as other channel incentive programs:
- Request: A channel partner requests a special dispensation to sell a specific volume of specific product(s) at a reduced price.
- Approve: The request is either approved or declined by the manufacturer.
- Claim: Partner submits a claim to the manufacturer to recoup the difference between the original price and the newly approved lower price.
- Validate: The vendor or manufacturer must confirm the claim is valid.
- Authorize: Valid claims now need to be authorized for payment.
- Payment: Reimbursement/payment of the claim amount to the channel partner.