Claim Settlement
The process by which distributors recover scheme payouts, damage credits, and reimbursements from the brand.
Full definition
Claim settlement is the back-office process by which distributors recover money owed to them by the brand, scheme benefits not auto-deducted on invoice, damage credits, return allowances, and promotional reimbursements. In Indian FMCG, claim settlement is notoriously slow and disputed: distributors often wait 60-120 days for claims to clear, tying up working capital.
The root cause is usually documentation mismatch: the distributor submits a claim but the brand cannot tie it back to the underlying order, scheme, or return. Every mismatched claim becomes a phone call, a re-submission, and a delay.
A digital scheme engine eliminates most of this friction by calculating benefits at order time, tagging them to specific invoices, and auto-generating credit notes. What remains is a clean reconciliation rather than a paper chase.
Real-world example
A distributor submits a Rs 40,000 claim for a quantitative scheme earned in September; the brand reviews against order records and issues a credit note the following month.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
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