Do you need help matching your accounts to the Adesso GL Categories?
Table of Contents
Introduction
To simplify your deduction settlement process and improve your analysis of your trade, we have developed standard General Ledger (GL) Names within Adesso. These are defined below, along with explanations of what items you would include in these standard ‘buckets.’
Your GL Codes/Numbering sequence can remain what you currently have in your QuickBooks. By adding these additional names to match the Adesso standard names, they will transfer into Adesso when we connect to your QuickBooks system.
Instructions
Before starting, please set up the A/R Clearing account. You can have the account number be whatever you prefer, but we require the GL Account Name to be set up as A/R Clearing. A/R Clearing will store the Credit Memo balances before settling them to the proper promotion/account in Adesso.
The Adesso GL Categories consist of three groups:
- Trade
- Non-Trade
- Repay
| Group | GL Name | Description | Examples |
| 1-Trade | 4601-ELDP | Every Day Low Price. This would be a deduction/chargeback (MCB) for an extended price reduction for performance detailed in the retailer agreement/contract. |
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| 4620-Merchandising | Retailers charge an additional fee on everything they sell. The goal is to reduce the need for broker help within the stores, thus reducing the 5% burden most brands pay to their broker partners. Many brands choose to put these in an expense line item, arguing they can negotiate these as they scale or that they have reduced their broker commissions for certain retailers as a result of these fees. We categorize these as Trade Spend under the umbrella of Merchandising Fees, but retailers call their individual programs many different names: In-Store Execution (ISE) fees, Homestore Billing, Shelf Activity Fees, Fair Share, and others. |
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| 4615-Slotting | These could be either case rate or lump sum charges for introductory product placement at either headquarters or retail store level that are paid as a deduction/chargeback (MCB) as detailed in the retailer agreement/contract. |
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| 4610-Ads/Fees | To run a promotion or be featured in a retailer's promotional material, it will usually cost an additional fee. TPR Ad Fees typically cover the retailer’s administrative costs associated with uploading the promo, ordering additional products, changing tags, and possibly moving products to a different location in the store. |
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| 4605-Promotions | These are performance-based case rate allowances for short-term price reductions that are typically paid for short-term price reductions based on what the retailer purchases from the distributor for a specified period. These are paid by deduction/chargeback (MCB) as detailed in the retailer agreement/contract. |
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| 4501-Off-Invoice Discounts | These are deductions/chargebacks (MCB) paid for Off Invoice allowances that were either not provided, are outside the OI period, or represent floor stock protection. |
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| 2-Non-Trade | 4510-Shortages /Overages | As you can imagine, receiving docks have a lot to manage with thousands of brands, pandemic-related volume increases, staffing and supply shortages, and freight issues. This has resulted in a major deduction problem area for all brands: shortages. short-ships, mis-ships, and over-ships are claims that the customer did not receive what you invoiced. The customer deducts the shortage on your check and may never communicate[1] if the product was found later, if another product was received instead, or reimburse you for volume-related fees (e.g. early payment discounts). These are essentially lost sales and should go to Trade Spend. |
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| 4505-Early Payment Discount | Credit terms that entitle the buyer (distributor/retailer) to a discount on payment made earlier than the invoice maturity date. |
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| 4630-Other Chargebacks | This account is a catch-all for any other chargebacks that come through that are a part of trade spend but do not have a home in one of the accounts above. We rarely see anything outside the buckets already covered, so you may want to omit this account unless you really need it. |
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| 2625-Spoils /Returns | Damaged, or spoiled goods. |
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| 3-Repay | 5000-Repay | A deduction/chargeback that is either viewed as not valid or exceeds the amount agreed to be paid in the retailer agreement/contract. Unauthorized non-trade deductions would be addressed in this category as well. |
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