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Need help managing Big Box Retailer payment deductions

Controller with a $200M Revenues company that sells consumer electronics to all major national retailers. Accounting team is struggling from frequent payment deductions on customer payments, including short ship claims, "not so early" payment discounts, old post audit claims for marketing deductions and advertising allowances, customer product returns, and out of compliance deliveries. Looking for help, recommendations on training, best practices in deduction management, and someone to swap war stories with.

Answers

Mark Koch
Title: Controller
Company: Turtle Beach
LinkedIn Profile
(Controller, Turtle Beach) |

Hi - see there are a lot of views, so going to provide an update for those who may be interested in topic. We have engaged an accounting consultant from a supplier support firm located in Arkansas to train the staff on how to use the retailers proprietary system to full advantage. Have also reached out to our sales team to arrange a face to face meeting with a finance contact from the retailer.
Happy to discuss or provide more details privately

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

It takes a trained shipping department (which is what you are now doing) to learn each retailer's pain point (where they can't ding you with charges).

The charges by the way is a revenue generation scheme they use to lower the price. Sort of how Walmart, I believe, just announced that since they are increasing the wages of their staff, they will seek lower costs or charges from their vendors.

As some point, it won't pay to sell to these stores, because the profit won't be worth the effort.... And that's when our economy will cycle again back to the mom & pop scenario.

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