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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.
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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.
1. All expenditures will be identified
as soon as they occur to be
able to monitor any unauthorized use of corporate funds.
2. 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
year period in developing the industry
standard closed-loop TPM software application, Account
Review™ TPM. Account Review™ TPM 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.
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