Channel Promotional Allowances:
The Importance of Financial Controls
Channel promotional allowance programs (such as MDF and co-op programs) are the most popular programs that vendors offer their channel partners. What’s more, these programs often represent the largest single expense line item across the broad range of channel programs offered. If not properly administered, they can needlessly cost vendors thousands, or even hundreds of thousands of dollars due to: over payment, incorrect balances that overstate available funds, missed expiration dates for funds, and inefficient management. This white paper outlines the areas of inefficiency and waste inherent in the management of promotional allowance programs without the appropriate financial controls in place.