Managing Trade Promotions Through Trade Allowance Management in Microsoft Dynamics AX 2012 R3

Managing Trade Promotions Through Trade Allowance Management in Microsoft Dynamics AX 2012 R3

Insights from: Traci Didonna (Fullscope Product Architect) 

March Blog Series: Connectivity

What is Trade Promotion Management?

A Trade Promotion […] is any expenditure paid directly by a manufacturer to the trade or retail factors in a given industry as a set amount on a per unit basis or in payment for a merchandising value provided by the retailer. Trade Promotions [..] include "slotting allowances", "performance allowances", "case allowances", and […] "account specific" promotions. -Promotion Marketing Association

What is Trade Allowance Management?

Trade allowance management is an entirely new piece of functionality released in Microsoft Dynamics AX 2012 R3.

It was designed to specifically address Trade Promotion Management and Deduction Management requirements.

Fully integrated, closed loop solution.

Who Needs it and Why is it Important?

  • Any Company that Sells through Specific Retail Channels
    • Grocery
    • Mass Merchandisers
    • Warehouse Clubs
    • Home Improvements Stores
    • Electronic Superstores
  • Virtually All Manufacturers and Distributors
  • Heavily used by Consumer Products Manufacturers (2nd largest expense)

Key elements of Trade allowance management    

  • Funding
    • Top-down allocation
  • Supports three types of merchandising events
    • Off-invoice
    • Bill-back (Rebate)
    • Lump sum
  • Payment methodssupported include:
    • Check through payables
    • Credit through AR/Deductions
  • Deduction management
    • Workbench
  • Analysis
    • Fund analysis
      • Planned vs. Incurred vs. Actual
    • Promotion ROI
      • Planned vs. ​Actual comparison

Process trade allow​​ance


  • Benefits:
    • Full support of trade management business process, fully integrated with the ERP
    • Better use of promotional marketing funds
    • Reduces administration time and errors
    • Demonstrates and improves ROI


  • Trade Promotion Management is Critical to Manufacturing and Distribution Companies because  huge sums of money spent
  • Microsoft Dynamics AX 2012 R3 is a solid solution that supports a Closed Loop TPM Business Process
    • Fully integrated
    • Supports the entire process from planning to analysis
    • Eliminates the need for a disconnected tool
  • Many AX customers could benefit from this new solution

For more information on how Edgewater Fullscope can assist your business with Microsoft Dynamics AX or other Microsoft Dynamics Solutions, please contact us today.

AX Technical Tip, AX Implementation, Trade Promotion Management, trade promotion management