Is
your current Trade Promotion Management system FASB compliant?
Government
scrutiny and regulations regarding accounting
practices are at a heightened level in all industries,
including the CPG sector. FASB Ruling 01-09 FASB has required that all trade promotion expenditures
targeted for price reduction/in-store merchandising
support be deducted from the quarterly gross revenue
statements. This accounting regulation has resulted
in many CPG manufacturers adjusting their revenue
downward by 20% and more.
Evolving
regulations and much tighter monitoring of CPG
manufacturers' trade promotion expenditures has
made it imperative to have a proven closed-loop
trade promotion management system in place.
Your TPM system should have the capability to
electronically capture trade promotion liabilities
and expenditures in real time and post it to a
specific promotion plan. This process accomplishes
2 critical financial objectives in light of the
recent government scrutiny.
All expenditures will be identified as
soon as they occur to be able to monitor
any unauthorized use of corporate funds.
An exact accounting of all trade investment
will be captured in real time, enabling
accurate reporting of adjusted gross revenue as
dictated by FASB.
All expenditures will be identified as
soon as they occur to be able to monitor
any unauthorized use of corporate funds.
An exact accounting of all trade investment
will be captured in real time, enabling
accurate reporting of adjusted gross revenue as
dictated by FASB.
Synectics
Group has dedicated itself over the past 23 year
period in developing the industry standard closed-loop
TPM software application, Account Review. Account
Review™ will place your organization
in a leading edge position to be compliant with
the current and future government regulations,
in addition to maximizing the effectiveness/efficiency
of your substantial trade promotion investment.
