Distribution guide
Trade Schemes and Bonus (10+1): How to Account for Them
Schemes move stock. A “10+1” or a quantity slab can win a shop’s order — but schemes applied by hand are where distributors quietly lose margin. A scheme missed upsets the shopkeeper; a scheme given twice costs you money; and bonus goods counted at zero cost make profit look better than it is.
By Rana Yasir Ali, Founder & CEO7 min read
1. Know the kinds of scheme
- Buy X, get Y of the same item — e.g. buy 10 cartons, get 1 free
- Buy X, get Y of a different item — e.g. buy 12 of a soap, get 1 shampoo
- Quantity slabs — 10+1 at 10 cartons, 25+3 at 25 cartons
- Customer-specific schemes — a better slab for a key retailer
- Date-bound schemes — valid only during a company campaign
2. Write the scheme down once, with its rules
For every scheme, record: which items or category it covers, which customers get it, the slab quantities, the free item and quantity, and the start and end dates. When everyone works from the same written rule, salesmen and the billing desk stop guessing.
3. Show free goods as their own lines on the invoice
Print the bonus quantity as a separate line at zero price. The shopkeeper sees exactly what was given free, and your stock goes down by the full quantity that left the warehouse — paid and free together.
4. Count bonus goods in cost of sales
A free carton is not free to you: it left your stock and it cost money to buy. If bonus goods are booked at zero cost, the profit on the invoice looks higher than it really is.
| Sold | 10 cartons at Rs 2,000 = Rs 20,000 |
|---|---|
| Bonus | 1 carton free |
| Your cost per carton | Rs 1,700 |
| Cost of 11 cartons | Rs 18,700 |
| True profit | Rs 20,000 − Rs 18,700 = Rs 1,300 |
| Profit if bonus is ignored | Rs 3,000 (overstated) |
5. Treat schemes on purchases the same way
Companies give schemes to distributors too. When you receive bonus goods on a purchase, spread the purchase cost across all units received. Your cost per unit falls, and every later sale shows its real margin.
6. Report on schemes every month
Track how much stock went out free, to which customers, and under which scheme. This tells you which schemes actually grew sales and helps you claim what the company owes you.
HisabMate
How HisabMate handles schemes
Write a scheme once and HisabMate applies it on every bill — on sales and on purchases.
- Buy-X-get-Y of the same or a different item, and quantity slabs like 10+1 and 25+3
- Defined by item, category or a specific customer, with date windows
- Applied automatically while billing; the user can override or remove
- Free goods printed as their own invoice lines
- Bonus cost counted in cost of goods, so profit stays true
- Bonus report: what went free, and to whom
- Order booking by salesmen and load sheets for dispatch
Questions
What does 10+1 mean?
For every 10 units bought, 1 more unit is given free.
Should bonus goods be shown on the invoice?
Yes, as their own lines at zero price, so the customer sees them and stock goes down by the full quantity.
Why does profit look too high after schemes?
Usually because free goods are booked at zero cost. Counting their cost gives the true profit.
Roman Urdu
Distribution mein 10+1 scheme ka hisab kaise karein?
Scheme ka rule ek dafa likhein, free maal bill par alag line mein dikhayein, aur free maal ki cost munafa nikalte waqt shamil karein.
Scheme khud lagane wala software?
HisabMate mein 10+1 aur slab schemes sale aur purchase par khud lagti hain, aur bonus ki cost munafa mein shamil hoti hai.