How do I calculate revenue after deductions per retailer?
Revenue by Retailer − All Deduction Costs = Net Revenue After Deductions
The deduction costs include:
- Trade spend (billbacks, scanbacks)
- Shortages and damages
- Slotting and new item activation
- Compliance charges
- Early payment discounts
- Freight
A retailer with $2 million in revenue and $700,000 in deductions leaves $1.3 million before product and other costs. Subtract cost of goods and the other costs of serving that account to calculate profit.
Why does a flat deduction budget not work?
Deduction rates vary with the retailer, promotion mix and account terms. A single rate across all accounts can hide those differences. Build the budget from each account's actual costs and planned activity.
How do I compare planned versus actual deduction spend?
Your promotion calendar is the source of truth. Compare it against actual deductions by retailer. If you planned $40,000 in trade spend with a retailer and actual deductions hit $65,000, that $25,000 variance is margin you did not account for.
What decisions does this data unlock?
- Which retailer relationships to grow
- Which to renegotiate terms on
- Which to walk away from
- Which promotions actually made money after deductions
How Revya handles per-retailer profitability
Revya categorizes every deduction by retailer, type, and product automatically. The system compares actual deductions against your promotion calendar, flags variances, and shows revenue after deductions by retailer. Combine that with your product and account costs to assess profit. See how Revya gives you per-retailer visibility
Frequently Asked Questions
How do I calculate revenue after deductions per retailer?
Subtract deductions from retailer revenue to find net revenue after deductions. Then subtract cost of goods and other account costs to calculate profit.
Why does a flat deduction budget not work?
One retailer might run at 18% deductions while another runs at 42%. A flat budget hides that difference.
How do I compare planned versus actual deduction spend?
Compare your promotion calendar against actual deductions by retailer. The variance is unplanned margin loss.
What does planned versus actual deduction spend tell me?
It shows where deductions exceed what you agreed to in your promotion calendar, revealing both recoverable errors and unplanned costs that need renegotiation.
Plan from the reconciled account result
Trade planning in Revya compares the promotion plan with actual deductions. Use payment and remittance matching to separate received cash, open balances and pending recoveries before judging the account.