Promotion Funds

Promotion funds are a financial contribution that a company pays a business partner, such as a dealer or distributor, to compensate them for marketing and advertising activities for the company’s own products. To do so, a promotion fund is mapped in a separate service condition contract within the framework of Condition Contract Management (CCM). This contract serves as a binding basis that clearly defines the advertising service to be rendered, along with the planned compensation for doing so, and is handled as service accounting for tax purposes. This sets it apart from product-related bonus contracts.