DealTrack Blog — Rebate Management

7 common problems with accounting for rebates

Posted by Andrew Butt on June 15, 2018 14:23:00

As experts in rebate management, we have come across (and fixed) many problems with rebate management processes.  Here are the 7 most common things that businesses need to fix in order to improve profitability and growth.

1. Problems capturing rebate agreements in core business systems

Companies tend to look for a specialist solution to rebate management when they reach a point where their core business systems are proven to be inadequate.  We have seen several scenarios:

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Topics: Rebate Management, IFRS 15

5 ways to improve your rebate management system

Posted by Andrew Butt on June 13, 2018 11:31:15

Due to the intricacies of most supplier trade agreements, rebate accounting is a notoriously complex operation. Many organisations still manage their rebates with spreadsheets or rely on their suppliers to make the calculations, despite this leaving them at high risk of errors and omissions that could lack audit compliance and lead to significant revenue loss.

To improve upon your current rebate management system, it’s necessary to take full control of the rebate process and the difficulties that arise from trade agreements.

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Topics: Rebate Management

Take control of your rebate debtors

Posted by Andrew Butt on May 23, 2018 09:15:00

In our experience, many businesses that receive rebate revenue from suppliers, don't have the means to be able to check that it is correct. 

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Topics: Rebate Management, Rebate Accounting, Rebate Management System

Rebate software “out of the box” to solve problems fast

Posted by Andrew Butt on March 27, 2018 11:20:32

This building supplies company has over 50 branches and is growing.  They recognised that having smooth business processes would be an essential foundation for their growth plans, and whilst most parts of the business had been systemised, the area of rebate management remained an anomaly.

They were using spreadsheets because their core ERP system (Kerridge) did not support their requirements. 

They approached Enable to discuss the suitability of DealTrack to their needs and were keen to discover whether a quick return on investment was possible.

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Topics: Rebate Management, Client Stories, Industry Sector: Building Materials, ERP Vendor Rebate Modules

Buying group purchasing system — 7 essential features

Posted by Andrew Butt on February 27, 2018 09:16:00

Buying groups, as the name suggests, are formed to give buying power to smaller independent companies through purchase consolidation.

Whilst buying groups don’t typically have control over the systems implemented by members, they do need information from members in order to negotiate the best possible deals on their behalf.

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Topics: Rebate Management, Industry Sector: Buying Groups

Best practice rebate management

Posted by Andrew Butt on February 26, 2018 10:36:00

Rebate Management refers to the management of discount claims that are based on volumes of purchases over time.

To some companies, that rebate is treated as a bonus. But to others, rebates form a significant proportion of their revenue and for these companies accurate management is absolutely essential.

The management and processing of rebates is challenging, with significant financial risks if something goes wrong due to loss of data or human error.

Many rebate arrangements lack support in financial accounting systems, such as targeted incentives and multistrand rebates. Keeping a track of rebates when purchasing is decentralised or where the trading agreement is made by a buying group creates further challenges.

So what can purchasers do about these challenges in order to maintain an effective management process?

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Topics: Rebate Management

Spring 2018 webinar series: profitable growth from rebate management

Posted by Andrew Butt on February 14, 2018 11:34:06

For spring / early summer we have a series of three webinars planned to share more detail about our 3 step approach to profitable growth through:

  1. Mastering rebate accounting and maximising profit from rebate deals;

  2. Being prepared for and executing on smarter supplier negotiations;

  3. Collaborating with suppliers for mutually profitable growth.

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Topics: Rebate Management, Procurement Excellence, Rebate Management & Compliance, Rebate Accounting, Industry Sector: Building Materials, Industry Sector: Wholesale Distribution, Rebate Management & Growth, Industry Sector: Retail, Industry Sector: Buying Groups, Rebate Management System

Vendor rebate module: Requirements specification

Posted by Andrew Butt on January 18, 2018 13:49:00

You may be reading this blog for one of a number of reasons, e.g.:

  • Your ERP system doesn’t have a vendor rebate module
  • Your ERP system has a vendor rebate module but before implementing you want to draw up a requirements specification to check on the match to your business needs
  • Your current vendor rebate module needs some work to meet your business needs
  • You have more than one ERP system operating within your company, but need one module that sits across them all to manage vendor rebates across the whole business / group
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Topics: Rebate Management, ERP Vendor Rebate Modules

Choosing your rebate management system

Posted by Andrew Butt on January 9, 2018 09:20:00

Trading agreements involving rebates are prevalent in many industries such as building materials, lumber, HVAC, electrical distributors, buying groups of all types and other wholesale distribution businesses.

Rebates are used by suppliers to these industries to influence purchase decisions and drive profitable growth for both the supplier and the wholesaler.

Our buyers’ guide is aimed at those wanting to choose a system to address the issues posed by managing rebate agreements.

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Topics: Rebate Management, Rebate Management System

Contract management software for buying groups

Posted by Andrew Butt on December 7, 2017 10:11:00

Considering whether contract management software could be the solution for efficient, compliant, management of supplier agreements in your buying group?  

You’re not alone. According to a recent survey by Oxford Economics, 49% of procurement executives said that their contract management is already automated and 68% of those surveyed predicted that in 2 years’ time contract management processes would be completely automated.

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Topics: Rebate Management, Contract Management