DealTrack Blog — Rebate Accounting

4 rebate accounting mistakes to avoid

Posted by Andrew Butt on March 14, 2017 10:26:00

Businesses managing complex trading agreements face several hurdles that are difficult to overcome entirely when using manual processes and spreadsheets. Lack of transparency, inaccuracy and limited control of rebate accounting processes is common and the ramifications of these can have a damaging effect on profit, compliance, cash flow and business growth.

For retailers, wholesalers and large buying groups, solving these issues to ensure receipt of the correct amount of rebate income and achievement of mutual trading goals is critical.  So what are the common pitfalls of rebate management and how can they be avoided?

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Topics: Rebate Management, Rebate Accounting

Year end revenue recognition — rebate accruals

Posted by Andrew Butt on June 9, 2016 18:10:20

How was your last year end?

I’m not referring to the actual outcome, but the PROCESS of getting to your year end figures together.

If you’re in the fortunate position of being able to match each supplier invoice to an order at the right price, then perhaps your year-end is simply a question of dealing with a volume of transactions?  But for those in the Building Supplies sector, those working in buying groups, and many wholesale distribution companies, revenue recognition is hampered by supplier rebates, retrospective discounts and other promotions.

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Topics: Rebate Management, Rebate Accounting

Rebate accountants: 3 ways to improve efficiency

Posted by Andrew Butt on May 31, 2016 11:00:00

It's a complex task managing multiple vendor rebate deals across multiple vendors, multiple product lines, and in some cases multiple units of measure.  2 for 1, multi-pack discounts, retrospective discounts, limited lifetime promotions, not to mention awards points and prizes make rebate accounting a very complex job. 

By way of illustration, we have worked on one example where there were 300 deals written into 1 vendor contract.  

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Topics: Rebate Management, Rebate Accounting