Worksheet: Write the discount ladder and track it

If nobody writes down who can give what, the answer is whoever the customer asks. This sheet writes the ladder, records every approval and tests a sample each month. It builds the Competent step of the check:

Discount authorities are defined by size and level, recorded, and mostly followed.

Step 1. The ladder

Role	Most discount off list (%)	Or most dollars given away per deal	Deal types covered	Escalates to
e.g. Sales rep	5%	$2,000	Standard stock orders	Branch manager
Sales rep
Branch or sales manager
Sales director or general manager
Chief executive

Check each band against contribution. If a band lets a deal go below the price that covers variable cost and cost to serve, it approves losses. Set the band below that point.

Step 2. Record every approval

Verbal approvals do not count. An email is the minimum until the quoting system can hold the approval.

Date	Customer	Deal value ($)	Discount given	Band it needed	Approved by	How (system, email)

Step 3. Test a sample each month

Pick 20 deals at random, plus every deal above the top band.

Month	Deals sampled	Inside the giver's own band	Approved by the right person	No approval found	Action taken

Also check that the terms in the system match the signed agreement for each sampled customer.

Done when: the ladder is written and every discount above a rep's band has a recorded approval. The monthly sample shows most deals follow it.

Adapted from our own trade spend controls review (Deloitte, 2015).