Scheme management software: features, pricing and how to choose
A scheme is a promise with conditions. Scheme management software is what keeps the promise, checks the conditions and pays, for a few hundred dealers or a hundred thousand retailers, without a coordinator and a spreadsheet in between. This guide is for the person who has to choose one.
Scheme management software is a system that lets a manufacturer configure trade schemes such as quantity slabs, turnover discounts, growth-on-base, range and launch schemes as rules, capture proof of qualifying transactions from ERP invoices, DMS data, retailer invoice uploads or serialised QR scans, calculate each partner's entitlement continuously, settle by credit note or UPI with tax handled, communicate slab positions and statements to partners on WhatsApp or an app, and keep an audit trail per payout. In India it is priced either per user, as a subscription by active partners (roughly ₹30,000 to ₹3 lakh a month on Unotag), or as a share of scheme value, and a first scheme typically goes live within four to eight weeks.
Scheme types the software must support
A scheme engine that handles only one structure will be worked around within a quarter. The list below is what Indian brands run, and a vendor should be able to configure every one of them from a screen rather than a change request. 50 retailer scheme examples shows them in the field.
- Quantity purchase schemes (QPS) with marginal or retroactive slabs, monthly or quarterly.
- Turnover discounts on value with annual and quarterly settlement.
- Growth on own base, with base recalculation rules.
- Range and assortment schemes verified from invoice lines.
- Launch and focus-SKU schemes with time boxes and multipliers.
- Festive multipliers announced in advance and withdrawn on a date.
- Display, visibility and service payouts verified by photo.
- Per-unit scan rewards for influencers, on the same base as the trade schemes.
The seven capabilities to evaluate
Rule engine
Metric, period, slabs, settlement basis, SKU eligibility, returns treatment, caps and floors, all configurable without code. Ask to see a rule changed mid-period and the effect on accruals.
Proof capture
ERP invoice sync for direct partners, DMS or distributor billing for secondary, invoice upload with optical reading for retailers, serialised QR scan-in for stock at the counter. Each tier produces different evidence; the software must take all four.
Entitlement calculation
Continuous, not at period end. The partner should see their slab position today. This is the single feature that changes behaviour.
Settlement
Credit note files in your ERP's format, UPI and bank payouts with failure handling and bank reconciliation, points and catalogue redemption, Section 194R aggregation across schemes and forms.
Communication
Scheme announcement, slab position, statement and dispute flow on WhatsApp in regional languages for retailers, and on a portal or app for distributors. See the communication plan guide.
Validation and audit
Duplicate invoice, return, related-outlet and velocity checks on every line; a queue for exceptions; an audit trail linking rule version, proof, approver and payment for every payout.
Reporting
Scheme cost against budget in real time, distribution of partners across slabs, lift against a control group, leakage caught. The ROI calculator shows what the lift report should contain.
Must have vs nice to have
| Capability | Must have | Nice to have |
|---|---|---|
| Configurable slab, growth, range and launch schemes | Yes | |
| Marginal and retroactive settlement, stated per scheme | Yes | |
| Invoice upload with optical reading, and QR scan-in | Yes for retailer tiers | |
| ERP and DMS integration (SAP, Tally, others) | Yes | |
| Live slab position visible to the partner | Yes | |
| Credit note file and UPI payout with reconciliation | Yes | |
| Section 194R aggregation and TDS certificates | Yes | |
| WhatsApp flows in regional languages | Yes for retailers | |
| Line-level validation and exception queue | Yes | |
| Control-group lift measurement | Yes | |
| What-if scheme cost simulation before launch | Yes, though the slab designer covers the basics | |
| Gift catalogue and debit-card rewards | Yes, if schemes pay in kind | |
| Anti-counterfeit verification on the same QR | Yes, if the product is counterfeited |
Pricing models
Three models are common in India. Per-user licensing, typical of ERP modules and enterprise suites, scales with your finance and sales headcount and often carries a large implementation fee. Subscription by active partners, typical of channel platforms, scales with the size of the program; Unotag's bands run from roughly ₹30,000 to ₹3 lakh a month by monthly active members, set out on the pricing page. A percentage of scheme value is offered by some providers and should be examined for the incentive it creates to approve claims. Whichever model, ask for the total over three years including integration, WhatsApp message costs and payout fees; the cost calculator is a starting point.
Implementation timeline
| Week | Activity | Who |
|---|---|---|
| 1 | Scheme rules written as tables; SKU and partner masters exported | Brand sales and finance |
| 2 | Sandbox configured with rules, masters and languages; ERP or DMS connection started | Vendor, brand IT |
| 3 | Field training; WhatsApp templates submitted for approval; counter material | Brand field team, vendor |
| 4 to 5 | Pilot in one or two territories with live settlement | All |
| 6 to 8 | Rollout by region; first full-period settlement | All |
Programs that need serialised QR on packaging add the printing lead time, typically four to eight weeks, which can run in parallel. The scheme implementation page describes how Unotag runs this, and the launch checklist lists what the brand must have ready.
Where spreadsheets stop working
Most brands arrive at scheme management software from a spreadsheet that served them well at two hundred dealers and one scheme. The spreadsheet fails at three points. The first is when a second scheme runs on the same partners and an invoice can qualify for both, because the duplicate check now spans two files owned by two people. The second is when a tier below the direct dealer is added, because the evidence is no longer in the ERP and someone has to key in retailer invoices. The third is when the partner asks where they stand mid-period, because the spreadsheet is updated at month end and the answer is a phone call. Any one of the three is survivable; the combination, which is what a growing program looks like by its second year, is when settlement slips to sixty days and partners stop believing the scheme. Software is worth buying at the point where the second scheme or the second tier arrives, not after the trust has gone.
Ten questions to ask a scheme management software vendor
- Configure a four-slab marginal QPS in front of me, then change slab three mid-period. What happens to accruals?
- Show me a retailer uploading a distributor invoice on WhatsApp in Hindi and the validation result.
- How does a partner see their slab position today?
- What does settlement produce for SAP or Tally, and how are UPI failures handled?
- Show the 194R aggregation for a partner earning a credit note, a UPI payout and a gift in one year.
- What validation rules run on every line, and what goes to a human?
- Show the audit record for one payout from last month.
- How is scheme cost tracked against budget during the period?
- What is the total three-year cost including integration, messaging and payout fees?
- What can I export if I leave, and in what format?
The vendor selection and RFP guide turns these into an RFP structure, and the retailer schemes solution shows how Unotag answers them.
Key takeaways
- Scheme management software must configure every scheme type you run, capture proof from ERP, DMS, invoice upload and QR scan, and calculate entitlement continuously.
- Live slab position visible to the partner is the feature that changes behaviour; settlement with 194R and an audit trail is the feature that protects finance.
- Pricing is per user, per active partner (₹30,000 to ₹3 lakh a month on Unotag) or a share of scheme value; compare three-year totals.
- A first scheme goes live in four to eight weeks; ask the ten questions above before signing.
Frequently asked questions
What is scheme management software?
Software that lets a manufacturer configure trade schemes as rules, capture proof of qualifying purchases or sales from ERP, DMS, invoice uploads or QR scans, calculate each partner's entitlement continuously, settle by credit note or UPI with tax handled, communicate with partners and keep an audit trail per payout.
What features should scheme management software have?
A configurable rule engine for slab, growth, range and launch schemes, proof capture across tiers, live slab positions for partners, credit-note and UPI settlement with Section 194R handling, WhatsApp communication in regional languages, line-level validation and a full audit trail.
How much does scheme management software cost in India?
Per-user licences with implementation fees for enterprise suites, or subscriptions by active partners for channel platforms; Unotag runs from roughly ₹30,000 to ₹3 lakh a month by monthly active members. Compare three-year totals including integration, messaging and payout fees.
How long does it take to implement scheme management software?
A first scheme typically goes live in four to eight weeks: rules and masters in week one, sandbox and integration in week two, field training in week three, pilot in weeks four and five, rollout by week eight. QR printing, if needed, runs in parallel.
Can scheme management software integrate with SAP or Tally?
Yes. Channel platforms sync invoices from SAP, Tally and other ERPs for direct partners and return credit note files in the ERP's format, while taking secondary proof from DMS, invoice uploads and scans for the tiers the ERP cannot see.
Does scheme management software handle retailer schemes or only dealer schemes?
Both, if it supports invoice upload with optical reading and QR scan-in for retailers who buy from distributors, alongside ERP-synced schemes for direct dealers, all on one member base.
What is the difference between scheme management software and a loyalty platform?
Scheme management is one function of a channel loyalty platform. A platform adds influencer scan rewards, points and catalogue, anti-counterfeit and engagement on the same member base. Many brands buy the platform and use scheme management as the first module.
What questions should I ask a scheme management software vendor?
Ask them to configure a scheme live, change it mid-period, show a retailer invoice upload on WhatsApp, produce a settlement file for your ERP, show 194R aggregation, list validation rules, show an audit record, track cost against budget, quote a three-year total and explain data export.