What the festive quarter does to incentives

1 · Stacking

Festive schemes run on top of the regular plan

Stockist schemes, festive contests for the field and the regular quarterly incentive all run at once. Each has its own dates, eligibility and often its own owner.

When they overlap, the same sale can count in all three, and it is often not written down whether that is intended.

Oct

Nov

Dec

Quarterly incentive

Regular plan, full quarter

Stockist scheme

Festive trade scheme

Field contest

Festive contest

2 · Loading

Primary sales run ahead of demand in October and November

Stock is pushed into the channel before Diwali. Where incentives are paid on primary sales, the quarter looks strong on paper. Where they are paid on secondary, the same push sits as extra stock with stockists.

Illustrative pattern, not client data.

3 · Returns

January brings the returns

Unsold festive stock, near-expiry packs and scheme adjustments come back through stockists after the season.

The returns land in the next quarter, but the incentive was earned on the sales they cancel. That is where the recovery question starts.

1
Recover it from the next payout
2
Spread it across the next few quarters
3
Let it go below a set amount

4 · Settlement · worked example

A 7% return moved the payout by 23%

Q3 target₹30.0 lakh Billed October to December₹33.0 lakh · 110% January returns on Q3 sales₹2.4 lakh Net Q3 sales₹30.6 lakh · 102%

₹2.4 lakh of returns is 7% of billing. It moves the MR one slab down, from ₹52,000 to ₹40,000: ₹12,000, or 23% of the payout, now in question.

Illustrative numbers.

Attainment	Payout	On ₹40,000 target incentive
Below 90%	None	₹0
90 to 99%	60%	₹24,000
100 to 109%	100%	₹40,000 · after returns
110% and above	130%	₹52,000 · as billed

5 · Before the quarter closes

Six decisions that settle the quarter cleanly

1
List every scheme running in the quarter.Festive contests, stockist schemes and the regular plan, each with its dates and owner.
2
Decide how scheme sales count toward slabs.Inside, outside or capped, written down before the quarter ends.
3
Track primary and secondary separately.Through October and November, so loading is visible before it is paid on.
4
Set the returns rule now.Which returns adjust which quarter, and the cut-off date.
5
Agree how recoveries work.From the next payout, spread across quarters, or waived below a set amount.
6
Share the settlement timeline with the field.So the January payout holds no surprises.

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