DemandTec, Inc., a provider of on-demand optimization solutions for retailers and consumer products manufacturers, has launched Allowance Billing, a new software service.

According to company officials, the new service, which builds on the capabilities of DemandTec’s Deal Management software service on the DemandTec TradePoint Network, creates new efficiencies by automating and simplifying the invoicing and collection of trade funds between retailers and their consumer products manufacturer trading partners.

Company officials said that DemandTec’s Allowance Billing service automatically compiles all trade fund data together in a single, automated system enabling retailers to create invoices and accruals based on negotiated deal terms and transaction data in the Deal Management software service.

“‘While trade promotion dollars help drive significant retailer profit, invoicing for those funds continues to be a slow, inefficient and manual process,” said Derek Smith, vice president of retail industry marketing at DemandTec, in a statement.

Smith said that allowance billing enables retailers to produce invoices for trade funds and reduce the time consuming manual processes that have plagued the industry for years.

Company officials pointed out that with Allowance Billing, DemandTec’s retail customers can create invoices and accruals automatically based on deal terms and transaction data in deal management; reduce errors by eliminating the need to enter data multiple times; streamline the invoicing process and create accountability with workflow management and monitor transactional details to ensure all allowable funds are billed among other such things.

According to company officials, Allowance Billing and Deal Management are components of the DemandTec End-to-End Promotion Management solution, a comprehensive suite of software services on the DemandTec TradePoint Network that enable retailers and manufacturers to plan, optimize, and execute trade promotions and other targeted marketing programs.

The DemandTec TradePoint Network is the Internet-based platform connecting all DemandTec software services and is used by retailers and their suppliers to collaborate on pricing, promotion, assortment, and other decisions. There are approximately 10,000 retailer and manufacturer end-users on the DemandTec TradePoint Network, who have collaborated on over 3 million trade deals to date.