Finance & Reconciliation

Distributor margins in FMCG are rarely uniform — they vary by product category, geography, volume slabs, and negotiated terms. Yet most companies track margins at an aggregate level, missing the SKU-level and distributor-level variances that quietly erode profitability.

FireAI ingests your primary billing data, distributor purchase statements, and secondary sales feeds to compute true realized margins at every level — by SKU, by distributor, by territory, and by time period. The system automatically flags distributors whose margins have drifted outside acceptable bands and correlates margin erosion with specific factors like scheme changes, freight cost increases, or product mix shifts.

What you can ask FireAI:

• "Which distributors have margins below 8% this quarter?"

• "Show me margin trend for top 10 distributors in West region — last 6 months"

• "What's the margin impact of the new trade scheme on personal care SKUs?"

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FMCG trade schemes — volume discounts, display incentives, target-linked payouts — are essential for driving off-take but notoriously difficult to settle accurately. Distributors claim based on their records; companies calculate based on theirs. The gap between the two is where disputes, delayed payments, and relationship damage live.

FireAI reconciles scheme entitlements against actual secondary sales data automatically. For each scheme, the system tracks: eligibility criteria met, volumes achieved vs target, payout calculated, payout claimed by distributor, and settlement status. Discrepancies are flagged instantly with a drill-down into the exact transactions causing the mismatch.

What you can ask FireAI:

• "Show unsettled trade schemes older than 30 days"

• "What's the total scheme liability for Q3 across all zones?"

• "Which distributors have disputed scheme calculations this month?"

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GST credit reconciliation in FMCG is uniquely complex because of the sheer volume of invoices, multiple HSN codes across product lines, and frequent rate changes. A mismatch between GSTR-2A (supplier-filed) and your purchase register means blocked input tax credits — directly hitting your cash flow.

FireAI performs automated three-way matching: your purchase register, supplier GSTR-1 filings, and GSTR-2A data. Mismatches are categorized by type — missing invoices, amount differences, HSN code mismatches, late filings — and prioritized by value. The system also tracks credit utilization rates by SKU category, helping you identify which product lines have the highest reconciliation friction.

What you can ask FireAI:

• "What's our total unmatched GST credit this quarter?"

• "Show me suppliers with the highest mismatch frequency"

• "Break down blocked ITC by product category and HSN code"

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The gap between what you bill to distributors (primary sales) and what actually moves off the shelf (secondary sales) is one of the most critical metrics in FMCG — yet one of the hardest to track accurately. High primary-to-secondary ratios signal channel stuffing; low ratios suggest stock-outs or poor retail execution.

FireAI maps every primary invoice to the corresponding secondary sales transactions, creating a real-time bridge between billing and off-take. The system flags anomalies — distributors with growing primary-secondary gaps, SKUs where secondary consistently lags billing, and regions where the ratio has shifted significantly. This isn't just a reconciliation exercise; it's an early warning system for demand misalignment.

What you can ask FireAI:

• "Which distributors have primary-to-secondary ratio above 1.5x?"

• "Show me the billing vs off-take gap trend for dairy SKUs — last 3 months"

• "Alert me when any zone's secondary drops below 70% of primary"

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