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Set Up Trade Promotion Management
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            Growth - Retroactive

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            Growth - Retroactive

            The engine calculated accruals based on units sold over the baseline and applies a retroactive-tier logic.

            Required Editions

            Available in: Lightning Experience

            Available in: Enterprise and Unlimited Editions where Trade Promotion Management, Data Cloud, and CRM Analytics are enabled

            Here’s the sequence of how the engine calculates accruals for growth-stepped tier type.

            • Calculates the baseline by adding all inputs during the period starting from the Baseline Date From and ending on the Baseline Date Thru.
            • Calculates the actual units sold by adding all inputs during the period starting from the Tier Date From and ending on the Tier Date Thru.
            • Calculates growth multiple (actual units sold ÷ baseline).
            • Applies retroactive-tier logic by using growth multiple.

            You pay bonus to retailers when they exceed a certain sales target. By using growth-retroactive, the engine calculates accrual when one predefined measure (for example current year sales) exceeds the one predefined reference measure (for example last year sales). So, only the delta to the predefined reference measure is used to calculate the accrual.

            Example
            Example

            Here are the configured rules.

            • Accruals Term: 5% on sales exceeding last year’s total
            • Baseline (Last year’s sales): $1,000,000
            • Monthly Accrual Approach: Accrue a percentage of current sales after the cumulative sales exceed the baseline

            Month 1:

            Sales for the month: $100,000, and total sales in the year: $100,000. Because total sales haven’t surpassed the $1,000,000 baseline, no accrual is calculated.

            Month 7:

            Sales for the month: $150,000, and total sales in the year: $1,050,000. Accruals are calculated because last year’s baseline exceeded. Growth for month 7 only = $1,050,000 - $1,000,000 = $50,000. Accruals for only month 7 = $50,000 * 5% = $2,500.

            Month 8:

            Sales for the month: $200,000, and total sales in the year: $1,250,000. Therefore, total growth is $250,000. Accrual for only Month 8 = $200,000 * 5% = $10,000.

            Month 12:

            Sales for the month: $200,000, and total sales in the year: $2,000,000. Therefore, total growth is $1,000,000. Accrual for only month 12: $200,000 * 5% = $10,000.

             
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