For most Finance teams in FMCG, trade spend is simultaneously one of the largest P&L lines and one of the least predictable. ERP shows what happened. It does not show what is coming - which promotions are approved, what liabilities are accumulating, or whether accruals reflect reality.
The result is a close process built on estimates, a forecast that lags commercial reality, and a recurring question that should not be hard to answer: are our promotions profitable?
TPM gives Finance the forward visibility, accrual accuracy, and promotion ROI data that ERP was never designed to provide.
ERP shows posted transactions. TPM shows planned, committed and forecasted trade spend - plus promo profitability and ROI - in one place.
ERP: only actual postings (invoices, credit notes, deductions). TPM: complete view of planned promotions, approved activities and forecasted trade investments, before they hit the P&L.
Finance can see:
Without a unified view across planned, forecasted, and actual spend, Finance can't confidently close the books or advise on commercial decisions.
TPM extends customer P&L with:
Standard ERP reporting can't isolate incremental profit created by a promotion. TPM provides the commercial context Finance needs to optimize customer profitability.
Using integrated data and advanced analytics, TPM delivers:
ERP has no concept of baseline, incremental uplift or promo mechanics - TPM does.
ERP lacks the baseline and incremental logic required for true ROI. TPM closes this gap so leadership can compare tactics and optimize future spend.
Using integrated data and advanced analytics, TPM delivers:
Manual accrual reviews are slow and prone to error. TPM provides a real-time accrual health check that reduces risk and improves month-end close efficiency.
Using integrated data and advanced analytics, TPM delivers:
TPM connects claims to approved promotions and guidelines, making leakage and non-compliance visible before they become audit findings.
Using integrated data and advanced analytics, TPM delivers:
TPM gives Finance a single source of truth for trade spend, making it easier to explain variances and align commercial decisions with financial targets.
TPM brings structure and predictability to trade spend, improving the quality of NSV, GM and cash-flow planning.
Finance sees which promotions are approved and scheduled, can estimate trade liabilities by month and quarter, and understands how different scenarios would impact P&L. Trade spend becomes a planned, forecastable investment.
TPM uses historical data and predictive modelling to estimate incremental volume, associated NSV and gross margin impact, and risk and upside scenarios. Financial forecasts reflect realistic assumptions, not just top-down adjustments.
Accrual positions are updated continuously, open promotions and their statuses are clear, and Finance has fewer manual adjustments at the last minute. Month-end close becomes a controlled reconciliation rather than a manual reconstruction.
TPM makes sure promo plans respect promo frequency guidelines, maximum discount depth / price corridors, minimum expected ROI, and strategic pack/price architecture.
Accruals are calculated from approved promotions, distributed over time based on promo start/end dates and expected uplifts, and updated as plans evolve. Accruals are grounded in commercial reality, not just historical percentages.
Finance can monitor current accruals vs actual claims and spend, promotions where accruals are likely too high or too low, and old accruals linked to promotions that under-performed. This enables in-year corrections, not just year-end clean-ups.
TPM connects promotions, planned funding and conditions, and incoming claims and deductions. The system automatically matches many claims to specific approved promotions, flags claims with no matching promotion or exceeding approved amounts, and supports Finance and Customer Service when resolving disputes.
Replacing Excel and email with TPM reduces manual spreadsheet calculation, avoids copy-paste and formula errors, eliminates multiple local files and inconsistent versions, and brings structured workflows and approval rules.
Auditors can see how each promotion was provided, who changed what and when, how the accrual was calculated, and how claims were matched to promotions. TPM provides full audit trails - almost impossible to maintain in spreadsheet environments.
ERP - for actuals, postings, GL, customer and product master data,
POS / sell-out data - for more accurate promo evaluation,
S&OP / demand planning systems - for aligning volume forecasts,
BI/reporting tools - for corporate dashboards.
For Finance: one consistent data backbone, fewer mismatches between commercial reality and accounting records, and easier explanation of variances.
promotions granted outside formal approval
duplicate or inflated claims vs approved funding
expired conditions still being used
misaligned accruals vs. actual spend
Finance can identify patterns of leakage, quantify impact by customer and market, and implement controls to prevent recurrence.
Trade spend as % of NSV by customer / channel / brand
Budget vs forecast vs actual trade spend
Promo ROI and profitability by promotion, customer, mechanic, brand
Incremental NSV and GM attributed to promotions
Accrual adequacy (over-/under-accrual) by market
Revenue leakage indicators (claims without approved promos, off-policy discounts)
Forecast accuracy for promo-driven volume and NSV
Promotional volumes based on advanced, data-driven uplift models
Promo calendar changes automatically reflected in the forecast
Finance, Sales and RGM working on a single shared dataset
Historic promo performance systematically captured and reused
Let’s talk! Are you interested in our solutions? Our experts are happy to answer all of your questions.
