Finance

Gross-to-net

The full reconciliation from gross revenue to net revenue, accounting for every rebate, chargeback, allowance and credit.

Gross-to-net is the financial statement of the same thing pocket price describes per transaction. It is the number the business is actually run on, and its production time is a good proxy for how automated the incentive layer is.

Twenty-five to forty-five days is common. Under five business days from period end is achievable and changes what management can act on, because a channel decision made six weeks late is a decision made after the money is spent.

Related terms

Pocket price

What you actually keep from a transaction after every on-invoice and off-invoice reduction.

Accrual

The liability or receivable recognised as a rebate is being earned, before it is actually settled.

Period close

The point at which an accounting period is locked and no further postings may change it.

GL reconciliation

Proving that the incentive subledger — accruals, claims, settlements and adjustments — agrees with the general ledger.

Still not clear?

Send it to us. We answer, and the good questions end up back in this glossary.

Ask us directly →

See the term in the product.

Thirty minutes, walking the mechanism you just read about through modelling, accrual, claim and settlement — against examples close to your own programmes.

Book a demo Back to terminology