When the deduction is created, the accounts receivable is not closed when cash is applied. Prior to offsetting the deduction against the accrual to cover the expense, to prevent revenue leakage, the settlement needs to go through a validation process that determines if the volume incentive conditions have been met. If the conditions are met, then the settlement is cleared against the accrual. If the conditions are NOT met, the deduction is invalid and charged back to your distributor for payment.

Vistex provides you with the ability to update and manage the volume invoiced to the distributor or “sell in” or volume the distributor “sells out” to an operator/vendor by capturing all the volume from all distribution tiers, adjusting the spend liability (settlement forthcoming) using distribution pools to validate the claim or settlement that has or has not met the volume incentive contract conditions. Vistex also provides configurable settlement validation rules to align to the most complex contract terms and automate the settlement validation process eliminating manual intervention and errors.