Overview
Trade accruals in Confido represent the estimated cost of promotions and other trade spending that has been incurred but not yet deducted or paid by your customers. This guide covers the complete accrual management process, from creation to closure.
To watch an overview of the accrual module see below:
Step 1: Setting Up Promotions in Trade Calendar
Accruals are automatically generated when you create promotions in the Trade Calendar module:
Navigate to Trade Calendar on the left hand nav and click "New Promotion"
Select your retailer - the ship-to customer will auto-populate
Enter performance dates - these are the actual on-shelf execution dates
Configure the accrual period - this is determined by your buy-in dates
Understanding Buy-In Delays
The "Period to Accrue" is based on buy-in dates, which can be configured using buy-in delays:
Zero buy-in delay: Accrue in the same month as promotion execution
Four-week buy-in delay: Accrue in the month prior to execution (assuming product shipment occurs before shelf execution)
Setting Buy-In Delays:
Click here or select Settings --> Forecast Settings
Scroll to Buy-In Delay
Set at default level for all customers
Override for specific customers as needed
Common practice: 4 weeks before execution for most promotions
Accrued vs Non-Accrued Trade Types
Not all trade spending needs to create accruals. Configure these settings here (Settings --> Trade Calendar):
Accrued Trade Types:
Promotional allowances
Display fees
Advertising co-op
Most deferred spending
Non-Accrued Trade Types:
Off-invoice discounts (spend hits financials immediately)
Real-time invoice adjustments
Immediate payment items
Configuration Options:
Turn off accrual creation for entire trade types
Set customer-specific overrides within trade types
Maintain flexibility for mixed scenarios
Step 2: Linking Deductions to Promotions
Once promotions exist and accruals are created, you can tag incoming deductions:
In the Cash Application Module:
Review incoming payments and deductions
Match deduction details (scan data, execution dates, products)
Tag deductions to corresponding promotions
This depletes the open accrual balance
In the Deductions Module:
Filter deductions by customer or date range
Use the "Linked Promotion" field to tag deductions
Review backup documentation before tagging
Step 3: Understanding the Accruals Module
Navigate the Accrual Module on the left hand nav.
The Trade Accruals module provides a comprehensive view with these key columns:
Forecasted Promotion Spend:
Original estimated cost when promotion was created
Based on rates × estimated units or flat fee amounts
Deductions:
Running total of all tagged deductions against the accrual
Drill-down capability to view underlying deduction details
Open Accrual Balance:
Forecasted spend minus deductions
Can be positive (under-deducted) or negative (over-deducted)
Advanced Features
Sales Actuals Latest Estimate:
Uses syndicated data (SPINS, Nielsen, IRI) when available
Calculates actual units sold × spend rate
Provides updated cost estimate based on real performance
Useful for comparing against original forecasts
Adjustment Capabilities:
Manual adjustments in the "Amount to Adjust" column
Suggested adjustments based on sales actuals
Bulk true-up functionality for multiple accruals
This adjusts the open balance - does not update the status
Filtering and Management
Default Views:
Shows current month and all previous promotions
Filters out future promotions automatically
Open accruals only (closed accruals show zero balance)
Custom Filtering:
By specific months, years, or retailers
By channel for team-specific management
By accrual status (open/closed)
Month-End Accrual Process
Standard Monthly Workflow
Throughout the month: Tag incoming deductions to existing accruals
End of month: Review all open accrual balances
Post accruals: Create journal entries for open balances
Next month start: Reverse previous accruals
Repeat process: Continue cycle with updated balances
Closing Accruals
Individual Closure:
Double-click accrual status to change from "Open" to "Closed"
Appropriate for fully depleted or unnecessary accruals
Sets open balance to zero
Bulk Closure:
Sort by lowest open accrual balances first
Select multiple accruals with zero or negative balances
Double click on the Open Status and change to Close
Drag down this status for all applicable accruals
When to Close:
Zero or negative balance after deductions
Promotion period ended and no additional deductions expected
Customer payment patterns indicate completion
Advanced Controls: Booking Accruals
The Booking Process
For enhanced control and traceability:
Review month-end position: Ensure all deductions are tagged
Close unnecessary accruals: Clean up zero/negative balances
Book the accrual: Lock amounts at point-in-time
Generate snapshot: Create permanent record for financial posting
Benefits of Booking
Prevents Changes:
Locks forecasted amounts in "Booked Accrual" column
Sales can still update promotions without affecting booked amounts
Maintains audit trail of what was posted to financials
Calculation Changes:
After booking: Booked Amount - Deductions - Adjustments = Open Balance
Before booking: Forecasted Amount - Deductions - Adjustments = Open Balance
Version Control:
Historical snapshots of each month's bookings
Ability to reference previous period details
Maintains traceability for audit purposes
Troubleshooting Common Issues
Negative Accrual Balances
Review original estimates vs actual performance
Check for duplicate deduction tagging
Verify promotion details and execution periods
Consider adjustments based on sales actuals data
Missing Deductions
Review customer payment timing patterns
Check for untagged deductions in system
Verify promotion details match deduction information
Consider customer-specific deduction practices
Accrual Accuracy
Leverage sales actuals data for better estimates
Review syndicated data integration
Monitor promotion performance vs forecasts
Adjust future accrual methodologies based on learnings