What is stock protection?
Stock protection is a ClaimDS claim that recovers a manufacturer price drop on inventory you still hold — on cost, on MRP, or both.
Stock protection is a claim that recovers a manufacturer price drop on inventory you're still holding. It matters most where SKUs depreciate quickly — consumer electronics is the classic case — so that stock you bought at yesterday's price isn't stranded when the price falls.
What it means
When you hold inventory and the manufacturer cuts the price, the stock you already paid more for loses value through no fault of yours. Stock protection lets you recover that drop on the quantity still in your warehouse, so a price move upstream doesn't punish you for holding stock. (This is what's often called price protection — in ClaimDS it's the stock-protection claim. See price protection in ClaimDS.)
What you can recover
You claim the price drop on the inventory you hold, and you can do it on:
- Cost — the fall in the cost price, on your eligible quantity.
- MRP — the fall in MRP, passing through an agreed percentage of it.
- Both — the cost and MRP components together.
How ClaimDS handles it
Stock protection is a purchase-side claim, raised under Claims → Purchase. You tell ClaimDS the inventory it applies to — either by declaring the eligible quantity yourself, or against an inventory snapshot — along with the old and new prices, and it works out the recoverable amount. From there it follows the normal claim lifecycle into reconciliation and settlement.
How it differs from other claims
Stock protection is about inventory you still hold. That's different from a retroactive price adjustment, which adjusts already-invoiced sales, and a special-pricing claim, which recovers the gap on a specially agreed selling price. ClaimDS keeps them as separate claim types for that reason.
Related
Still stuck?
Book a demo and we'll walk through it on your own data — or just talk to us.