TWENTY3 Intelligence Library
Finance & Operations
Chargeback
Cost
Cost
Find the true net revenue and margin on a retail account after chargebacks, allowances, and compliance costs are applied. Most accounts look less profitable on paper than they appear on the PO. Some should be exited entirely.
1
Account & PO DetailsGross invoice value
Before chargebacks
Orders per year
Compliance, filing, disputes
Staff cost for compliance work
Monthly EDI provider cost for this account
2
Deductions & AllowancesEnter pre-agreed deductions as % of PO and estimated chargeback incidents with their per-incident cost.
e.g. 2% 10 NET 30
Pre-agreed. Applied to PO value.
Brand contribution to promotions
One-time per retailer, amortize as needed
3
Chargeback IncidentsEnter expected incidents per PO and fee per incident. Adjust as your compliance improves.
| Chargeback Type | Incidents / PO | Fee Each ($) |
|---|---|---|
| Routing violationWrong carrier or service level | ||
| Labeling / ticketing errorBarcode, price ticket, carton label | ||
| EDI errorASN late, wrong format, data mismatch | ||
| Packing violationWrong case qty, mixed SKUs | ||
| Late / short shipmentOutside ship window or short quantity | ||
| Other / miscAny additional violation type |
% of chargebacks successfully disputed back
Time cost of filing a dispute
True Net Revenue per PO
Net Revenue After All Deductions
$0
vs $0 gross PO value
0%
True Net Margin
0%
Chargeback Rate
$0
Total Deductions
$0
Annual Profit
Account Healthy
Net margin is above 45%. This account is worth maintaining.
PO Revenue Waterfall
Gross PO Value -
Less: Early Pay Discount -
Less: Markdown Allowance -
Less: Co-op Contribution -
Less: Gross Chargebacks -
Plus: Chargebacks Recovered -
Net Revenue -
Margin Waterfall
Gross Margin (before deductions) -
Less: All Allowances -
Less: Net Chargebacks -
Less: EDI Cost (annual / PO) -
Less: Admin Labour Cost -
True Net Profit / PO -
Annual View (0 POs)
Annual Gross Revenue -
Annual Total Deductions -
Annual Chargeback Cost (net) -
Annual Net Profit -