Katealennus

Katealennus is a term used in Finnish accounting and retail management to describe a reduction applied to the gross margin granted to a customer, typically through a discount, rebate, or price concession. The word combines kate (gross margin) with alennus (discount). It is not a formal statutory deduction, but a practical concept used in internal pricing and profitability analysis to track how concessions affect profitability.

In use, katealennus is recorded as a separate line in internal reports to show the amount by which the gross profit has been reduced beyond the standard selling price. Example: a product with a list price of 100, cost of goods sold 60; standard gross profit 40. If a customer receives a 10 discount, the katealennus is 10, reducing the realized gross profit to 30. The concept helps managers assess pricing strategies, discounting practices, and their impact on margins.

Notes: Some organizations account for discounts directly as reductions in revenue in external financial statements, rendering the internal katealennus figure primarily for management accounting rather than statutory reporting. The term is most common in Finnish retail and wholesale contexts and may vary in definition between companies and industries.

See also: gross margin, discount, rebates, price concession.