Key Terms and Definitions
Term/Acronym | Definition |
Advertising Allowance (AA) | (Walmart) A negotiated allowance that the supplier pays to Walmart to help defray the retailer’s advertising costs. |
Payments or discounts that a supplier gives a retailer to support promotional or operational costs (e.g., marketing, freight, warehousing, displays) | |
Amazon Co-Op | Amazon’s program of cooperative marketing agreements where vendors fund various promotional or operational activities to drive visibility and sales. |
Walmart’s platform for submitting disputes of allowance deduction claims. | |
Business Development Fund/Handling Allowance (HA) | (Walmart) An allowance negotiated with Walmart to support developing the supplier’s product. |
Consumer Packaged Goods (CPG) | Products that are sold quickly and at a relatively low cost — typically items people use up and replace frequently. |
Contract Deduction | (Target) A deduction taken by Target under its Target Vendor Income (TVI) program, according to the terms of the vendor’s contract. |
Display/Endcap Allowance (DA) | (Walmart) An allowance paid by the supplier to Walmart to fund in-store product placement. |
Defective Goods Allowance (DM) | (Walmart) An allowance to offset costs associated with defective or unsellable merchandise. |
Early Buy (EB) | (Walmart) Allowance negotiated in return for giving the Supplier budgeting advantages. |
Endcap Display | A type of promotion where products are featured at the end of store aisles to maximize visibility and boost impulse purchases. |
Freight Allowance (FA) | (Walmart) An allowance that compensates Walmart for the supplier’s share of transportation costs, negotiated into the supplier agreement. |
Freight/Damage Allowances | (Amazon) Co‑Op agreement where vendors and Amazon share logistics expenses and costs associated with damaged goods. |
Incremental Revenue | The additional revenue that comes from a promotional period. |
Invalid Deduction | A deduction taken by a retailer that doesn’t align with the agreed contract terms — for example, duplicates, incorrect rates, or deductions not supported by an agreement. These should be disputed. |
Key Performance Indicator (KPI) | Quantifiable metrics established to measure the success of trade promotions aligned with the promotion objectives. |
Line Level New Store Discount (SA) | (Walmart) A discount negotiated at the line-item level for new Walmart stores, used to support product introduction into new locations. |
New Warehouse Allowance (NW) | (Walmart) An allowance that covers the cost associated with initial stocking orders for a supplier’s SKU in a new distribution center or warehouse. |
Off Invoice (OI) | A discount that is taken directly from the supplier’s invoice (before issuing the invoice), rather than being applied later as a deduction. |
Partners Online | Target’s Vendor portal. |
Point-of-Sale (POS) Promotions | Promotional activity that occurs at or near the checkout area (e.g., impulse lanes, near register) to encourage last-minute purchases. |
P.O. Level New Store Discount (OL) | (Walmart) A purchase-order-level discount granted for products being shipped to new Walmart stores—supports expansion into new locations. |
Predictive Analytics | The use of data to model and forecast future outcomes. |
Price Protection | (Amazon) A Co‑Op agreement in which Amazon is protected if a vendor lowers their product cost. |
Promotional Allowance (PA) | (Walmart) A temporary allowance negotiated with Walmart to support a defined promotional period. |
Proof Documentation | Evidence required to substantiate a deduction dispute. |
Return on Investment (ROI) | Refers to a performance metric that measures the success of a promotion. |
Sales Lift | The increase in sales volume during a promotion versus a baseline unpromoted period. |
Scenario Planning | The process of modeling different possible future outcomes for trade promotions to guide strategic decisions. |
SPA/FLEX Promotional Allowances | (Amazon) Co‑Op funds Amazon vendors pay into that support specific promotional events. |
Straight Payments | (Amazon) Non‑contingent, fixed payments that a vendor agrees to pay Amazon for promotional placement or advertising. |
The legal contract between a supplier and Walmart that outlines partnership terms. | |
Swell Allowance (SW) | (Walmart) A negotiated allowance to compensate Walmart for handling defective goods. |
Synergy | The platform Target uses to submit and manage deduction disputes. |
Target Vendor Income (TVI) | Target’s program for managing and collecting vendor-funded trade spend. |
TVI Vehicles | (Target) The 24 different categories (or “vehicles”) within Target’s TVI program that define how vendor funds are allocated. |
TV/Radio Media Allowance (TR) | (Walmart) A negotiated allowance for media costs. |
Amazon’s portal for vendors. | |
Valid Deduction | A deduction that aligns with the terms of an agreed allowance or contract. |
VCNA | (Target) System Source code to identify records originating in (Target Vendor Income) TVI. |
VCPN | (Target) System Source code to identify records coming from the FBR (coupon) file. |
Volume Discount (VD) | (Walmart) A discount or allowance given by the supplier to Walmart when Walmart purchases large quantities (volume) of a product. |
Volume Incentive | (Amazon) A type of Amazon Co‑Op agreement where vendors provide discounts or rebates to Amazon based on achieving certain sales volume thresholds. |
VONL | (Target) System Source code to identify records entered via the Online Manual Entry process in VIP. |
VSUP | (Target) System Source code to identify records entered via the Spreadsheet Upload process in VIP. |
Negotiated allowances that suppliers pay to Walmart to support various promotional, operational, or expansion activities. | |
Warehouse Allowance (WA) | (Walmart) An allowance to compensate Walmart for costs associated with warehouse handling. |
Warehouse Distribution Allowance (QD) | (Walmart) Allowance negotiated to eliminate the work and expense required for DSD shipments. |
