You can see what trade spend was posted. You cannot see what was planned, committed, or at risk - until it is too late.
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.
What reports can I get from TPM that I can't get from ERP?
ERP shows posted transactions. TPM shows planned, committed and forecasted trade spend - plus promo profitability and ROI - in one place.
Planned vs Forecast vs Actual Trade Spend
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:
- future trade liabilities by customer, brand, channel,
- how changes in the promo calendar affect forecasted spend,
- where the organization is at risk of over- or under-investment
Why this matters:
Without a unified view across planned, forecasted, and actual spend, Finance can't confidently close the books or advise on commercial decisions.
Customer P&L Including Promo Profitability
TPM extends customer P&L with:
- baseline vs incremental volume,
- incremental NSV and gross margin,
- promotion ROI at event, customer and mechanic level,
- trade spend effectiveness rather than simply "spend as % of sales".
- This allows Finance to answer: "Which customers and promotions are really creating value - and which are destroying margin?"
Why this matters:
Standard ERP reporting can't isolate incremental profit created by a promotion. TPM provides the commercial context Finance needs to optimize customer profitability.
Promotion ROI and Post-Event Evaluation Reports
Using integrated data and advanced analytics, TPM delivers:
- uplift vs baseline,
- incremental revenue and profit,
- ROI per promotion, customer and mechanic,
- year-on-year promo performance,
- comparisons between promo tactics (price reduction, multi-buy, feature & display, etc.).
ERP has no concept of baseline, incremental uplift or promo mechanics - TPM does.
Why this matters:
ERP lacks the baseline and incremental logic required for true ROI. TPM closes this gap so leadership can compare tactics and optimize future spend.
Accrual Adequacy & Liability Reports
Using integrated data and advanced analytics, TPM delivers:
- real-time view of accrued vs. actual trade spend,
- over- and under-accrual alerts by customer and brand,
- visibility of promotions planned but not executed (potential release of accruals),
- breakdown of open liabilities by time and customer.
Why this matters:
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.
Revenue Leakage & Non-Compliance Reports
Using integrated data and advanced analytics, TPM delivers:
- claims without matching promotions,
- duplicated or excessive claims vs approved funding,
- spend outside of promo/RGM guidelines,
- conditions that remain open with no consumption.
Why this matters:
TPM connects claims to approved promotions and guidelines, making leakage and non-compliance visible before they become audit findings.
Budget / Forecast / Actual Trade Spend Overview
Using integrated data and advanced analytics, TPM delivers:
- budget vs latest forecast vs actuals,
- causes of forecast variances (by event, customer, mechanic),
- impact of promo decisions on NSV and margin forecasts.
Why this matters:
TPM gives Finance a single source of truth for trade spend, making it easier to explain variances and align commercial decisions with financial targets.
How can I improve my financial planning with TPM?
TPM brings structure and predictability to trade spend, improving the quality of NSV, GM and cash-flow planning.
Forward Visibility of Trade Liabilities
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.
More Reliable NSV and Gross Margin Forecasts
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.
Scenario Planning: "What If" for Finance
- What happens to NSV and margin if we add or remove a promotion for a key customer?
- What is the financial impact if we reduce discount depth or shorten a promo?
- How does shifting spend from one channel or customer to another affect the overall P&L?
Smoother Month-End and Quarter-End Close
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.
Alignment With RGM Guardrails and Strategy
TPM makes sure promo plans respect promo frequency guidelines, maximum discount depth / price corridors, minimum expected ROI, and strategic pack/price architecture.
How can TPM improve accruals and settlement?
What data sources does TPM integrate with?
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ERP - for actuals, postings, GL, customer and product master data,
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POS / sell-out data - for more accurate promo evaluation,
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S&OP / demand planning systems - for aligning volume forecasts,
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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.
How does TPM reduce revenue leakage?
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promotions granted outside formal approval
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duplicate or inflated claims vs approved funding
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expired conditions still being used
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misaligned accruals vs. actual spend
Finance can identify patterns of leakage, quantify impact by customer and market, and implement controls to prevent recurrence.
What KPIs and dashboards can Finance expect from TPM?
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Trade spend as % of NSV by customer / channel / brand
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Budget vs forecast vs actual trade spend
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Promo ROI and profitability by promotion, customer, mechanic, brand
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Incremental NSV and GM attributed to promotions
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Accrual adequacy (over-/under-accrual) by market
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Revenue leakage indicators (claims without approved promos, off-policy discounts)
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Forecast accuracy for promo-driven volume and NSV
How does TPM improve forecast accuracy?
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Promotional volumes based on advanced, data-driven uplift models
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Promo calendar changes automatically reflected in the forecast
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Finance, Sales and RGM working on a single shared dataset
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Historic promo performance systematically captured and reused
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