Swell Allowance

Swell Allowance

n. A VENDOR-issued credit to the STORE, which is issued in advance as a percentage of each ORDER, and against which the STORE may internally deduct losses for such things as goods received in damaged condition, goods which go OUT-OF-DATE before they're sold, and so on. Compare RECLAMATION.

NOTE: This is not an issue that STOCK CLERKS normally deal with. RECEIVERS do. But it's interesting, nonetheless.

VENDORS like a Swell Allowance, because they issue the fixed percentile credit based on the size of the ORDER, and that's that. They don't have to worry about any further niggling. From the point of view of the STORE, however, a Swell Allowance isn't really all that “swell.” That's because the STORE would much prefer to receive full credit for any such losses. On the other hand, such a carte-blanche credit issued in advance does pose an opportunity for the STORE to make additional profit—for instance, should an entire LOT be received in good condition, and then MOVE before any of it goes OUT-OF-DATE. Plus, it does mean less paperwork (i.e., time, trouble, and expense) for both parties. So, a Swell Allowance is a compromise, and represents a delicate balance among and between the various cooperative and competing interests of both parties.