Price protection
A brand credit that compensates a dealer when the brand cuts a product's price while the dealer still holds old, higher-cost stock — claimed as the per-unit difference on unsold inventory.
Price protection is a brand credit that compensates a dealer when the brand cuts a product's price while the dealer still holds old, higher-cost stock. The dealer claims the per-unit difference on the unsold inventory it was holding at the moment of the price drop.
Reconciling price protection means matching the brand's price-drop notice against on-hand quantity at that date and the credit actually received. The common leakage is a price cut that was never credited, or credited on the wrong quantity — hard to catch without a stock snapshot tied to the price-change date.
Because it is claimed on unsold stock, price-protection reconciliation needs both the brand's price-change circular and the dealer's inventory position, not just the purchase ledger.