Scan Based Trading

As AAM member newspapers partner with retailers who employ Scan Based Trading (SBT) it becomes necessary to establish a process for the accounting of net sales when SBT is involved. The newspaper industry is evaluating whether there should be any specific guidance established given some of the inconsistencies involved in SBT reporting. At this time there is no guidance except for what is described below. This subject is reviewed at each AM board meeting. Newspaper members should continue to refer to this document to see if there are any updates.

Currently, there are two ways to account for net paid circulation from retailers using SBT.

1. If traditional in and out reports are used to physically account for the draw and returns, a newspaper may claim the net (Draw - Returns) as paid circulation.

2. If the newspaper relies on the SBT results to determine the net sale, such a report may be used. There is no allowance for any SBT inaccuracies.

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