# Off-invoice leakage: pricing metric definition, thresholds and response

> Everything that comes off after the invoice, as points of list: rebates, freight, terms and claims, co-op and surcharges where they apply.

Source: https://revomo.ai/marketplace/metrics/off-invoice-leakage/

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[Marketplace](https://revomo.ai/marketplace/)[Explore](https://revomo.ai/marketplace/)[Templates](https://revomo.ai/marketplace/templates/)[Metrics](https://revomo.ai/marketplace/metrics/)

Marketplace
- [Explore](https://revomo.ai/marketplace/)
- [Templates](https://revomo.ai/marketplace/templates/)
- [Metrics](https://revomo.ai/marketplace/metrics/)

Business need
- [Margin Leakage](https://revomo.ai/marketplace/collections/margin-leakage/)
- [Cost Recovery](https://revomo.ai/marketplace/collections/cost-recovery/)
- [Price Increase](https://revomo.ai/marketplace/collections/annual-price-increase/)
- [Quote & Deal Performance](https://revomo.ai/marketplace/collections/quote-deal-performance/)
- [Contract Renewal](https://revomo.ai/marketplace/collections/contract-renewal/)
- [Rebates & Incentives](https://revomo.ai/marketplace/collections/rebates-incentives/)
- [Market Response](https://revomo.ai/marketplace/collections/market-response/)

Industry
- [Industrial distribution](https://revomo.ai/marketplace/templates/?industry=distribution)
- [Machinery & industrial products](https://revomo.ai/marketplace/templates/?industry=machinery)
- [Building products](https://revomo.ai/marketplace/templates/?industry=building)
- [Chemicals & materials](https://revomo.ai/marketplace/templates/?industry=chemicals)

Search Marketplace

- [Marketplace](https://revomo.ai/marketplace/)
- [Metrics](https://revomo.ai/marketplace/metrics/)
- [Margin Leakage & Cost Recovery](https://revomo.ai/marketplace/metrics/?category=leakage)
- Metric

## Off-invoice leakage

Everything that comes off after the invoice, as points of list: rebates, freight, terms and claims, co-op and surcharges where they apply.
[See Off-invoice leakage in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=off-invoice-leakage&name=Off-invoice+leakage&collection=margin-leakage)

### Why it matters

Rebates, freight, terms and claims settle after the invoice, where the price file cannot see them. As points of list, leakage is comparable across segments and over time.

### Act when

Above the segment baseline, or up a point in a quarter

Thresholds are set per business; the ones written as x and y are placeholders your team fills in.

### What it may signal

Programs past their term, delivered prices set before rates moved.

### What to do

The templates that respond when this metric moves.
- [Margin leakage waterfall](https://revomo.ai/marketplace/templates/leakage-waterfall/)*template*
- [Rebate tier optimization](https://revomo.ai/marketplace/templates/rebate-tier-optimization/)*template*
- [Freight recovery optimization](https://revomo.ai/marketplace/templates/freight-recovery-optimization/)*template*

### How it’s defined

Formula
`('Invoice price' - 'Pocket price') / 'List price'`

Required context
Invoice lines, Rebates, Freight, Receivables, Credits

Dimensions
Account, Segment, Step

Cadence
Reviewed monthly

Lineage
Every value traces to the invoice line or governing record it was computed from.

Use in
**Alerts**: an agent watches it against a rule and alerts you when it trips. **Against plan**: tracked against the target, with the bridge that says what moved it. **After a decision**: measured against what the model said the decision would deliver.

### Relevant industries

All industries

Type
Metric

Category
[Margin Leakage & Cost Recovery](https://revomo.ai/marketplace/metrics/?category=leakage)

Use in
Alerts · Against plan · After a decision

Cadence
Monthly

Industries
All industries

Business need
[Margin Leakage](https://revomo.ai/marketplace/collections/margin-leakage/)

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=off-invoice-leakage&name=Off-invoice+leakage&collection=margin-leakage) Defined, monitored and connected to action, on representative data or your own.

### Related metrics

- Pricing & Realization #### [Price realization index](https://revomo.ai/marketplace/metrics/price-realization/) Pocket price as a share of list, by account and segment. **Act when**Below 95 on any national account, or a two-point drop in a quarter Alerts · Against plan · After a decision
- Pricing & Realization #### [Discounts given](https://revomo.ai/marketplace/metrics/discounts-given/) Average discount off list and the share of lines discounted, by segment and rep. **Act when**A jump in the average, or new requests above the corridor Alerts · Against plan
- Revenue & Margin Performance #### [Margin, unit and percent](https://revomo.ai/marketplace/metrics/unit-margin/) Pocket margin per unit and as a share of pocket price, by SKU and account. **Act when**A drop over x points, or a single cost driver up over y% Alerts · Against plan · After a decision

### See Off-invoice leakage on your commercial data.

We will show how Revomo defines, monitors and connects this metric to commercial action, using representative data or your own.
[See this on your commercial data →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=off-invoice-leakage&name=Off-invoice+leakage&collection=margin-leakage)[All metrics](https://revomo.ai/marketplace/metrics/)