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Rebate management explained

Posted by Andrew Butt on September 19, 2018 14:23:32

Rebate management is the process of recording supplier agreements, tracking purchases and sales against those agreements, and managing accruals and rebate claims in a timely manner.  This blog and animation cover:

  • What is rebate management?

  • What is a rebate management system?

  • What are the benefits of having a rebate management system?

  • What types of company use rebate management systems?

A rebate management system allows you to accurately systemise and automate every element of a rebate deal:

  • Recording any type of pricing agreement eg “ship and debit” “retrospective tiered discount” "special pricing agreement (SPA) and more
  • Automating the tracking of purchases and sales against those deals
  • Automated accruals recording
  • Automatic invoicing / supplier debits
  • Reporting, forecasting and information for commercial team negotiations

The benefits of a rebate management system include:

  • Simplified business processes due to automation
  • Minimised supplier disputes and faster resolution (where needed) through accurate audit trails
  • Improved cash flow through more timely rebate claims
  • Improved margin through accurate rebate and pricing calculations
  • Automation drives up the productivity of your finance and commercial teams
  • Better supplier collaboration leading to improved profitability and growth

Businesses gain significant ROI for a rebate management system if:

  • Their profit margin includes a substantial amount of rebate claims and/or
  • The annual value of rebates claimed exceeds the equivalent of $US5,000,000

For more information about potential ROI, review our guide What is the financial impact of implementing DealTrack? 

Financial Impact of Implementing DealTrack

Topics: Rebate Management, Rebate Accounting, Rebate Management System