Recover Excessive Ship and Debit Claims

Ship-and-Debit rebates are off-invoice allowances used by electronic and technology original equipment manufacturers (OEMs) to protect channel distributor margins in case the distributor must sell at less than the original in-stock price. A rebate may be appropriate when the OEM reduces its product prices, as a response to changed market conditions, or when a distributor is required to lower the resale price to be competitive to close a large sale.

Our matching and reconciliation Ship and Debit software enables us to identify, investigate, and validate these allowances against your Ship and Debit agreement to identify inaccurate payments. Records reviewed include EDI, XML transactions, SKU price variances, product returns, price protection, in-field transfers, rebates, short shipments, drop-shipments, stock rotations, sell-ins, sell-through, and impact of other rebate and allowance programs.

An OEM may have multiple volume, mix, and sales rebate programs, and perhaps as well directly with a distributor's end-customer. If not careful, the OEM can end up paying Ship and Debit claims on top of the other allowances already given. In another example, the product has to be proven purchased directly from the OEM, instead of third-party diverters at lower than OEM prices, and then improperly claimed under a Ship and Debit program.

After careful review, our auditors contact the reseller or end customer for further supporting details, and to obtain repayment for excessive or erroneous claims.

Prevent abuse and errors

Prevent and recover erroneous payments

Avoid profit leakage

Fast startup with no learning curve

Success fees make us partners in the project

The distributor initiates a Ship and Debit claim for the difference in pricing, which is an off-invoice discount-rebate to reduce the cost to the distributor. The OEM must validate the claim by verifying distributor sales and inventory documentation against the OEM sales records and program requirements. A careful Ship and Debit audit is needed because of the potential for error or abuse. For example, the distributor inventory must be proved to have been purchased directly from the OEM and not from third-party diverters at lower than OEM pricing and then claimed under a Ship and Debit program.

Our Audit and Recovery Process is Non-Intrusive

Our process is straightforward and does not require any support from your staff except for the required data and documentation. Supplier contacts are kept professional, friendly, and collaborative. The process is easy.

  1. You provide a data (ship and debit, trial balance) download and document access, plus an introduction letter for us, if needed.
  2. We run your ship and debit claims data through our special software, find and audit the excess payments, plus any exceptions for further review.
  3. We obtain backup from the resellers and carefully analyze that against your data to verify claims.
  4. After a supervisory review, we contact the reseller to request repayment due to you, and we reconcile any discrepancies in positions.
  5. We bill you our share only after the credits due you have been identified or you receive a refund. We will assist in that process.
  6. You receive an end of engagement management report identifying steps to take to reduce such instances in the future.



Ready to find out more?

Drop us a line today to arrange a no-obligation review!