Written at 21 April, 2016 10:25:52 AM by Alex Michal
    • Technology OEMs and other product companies that go to market via distributors, VARs, and resellers often recognize revenue and manage their business based on what's known as a "sell-in" basis. This means they book revenue as soon as product is shipped to the distributor's warehouse. They may take a small reserve to account for returns or back-end discounts. While this is acceptable and consistent with Generally Accepted Accounting Principles (GAAP), it can expose a company to many channel challenges and issues -- including but not limited to inability to track real margins, having too much or too little inventory in the channel, rebate overpayments, commission overpayments, and the reality of little or no partner pipeline visibility.
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