DealTrack Blog — Rebate Management

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

Rebate management for building materials distributors

Posted by Andrew Butt on March 1, 2017 09:15:44

Missing out on claiming manufacturer’s rebates is like negotiating a higher price with your suppliers.  It simply shouldn’t happen!

That's why we created DealTrack — THE rebate management system chosen by several building materials wholesale distributors and buying groups.

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Topics: Rebate Management, Industry Sector: Building Materials

3 major risks of NOT having a robust rebate management system

Posted by Andrew Butt on February 15, 2017 08:00:00

It isn’t unusual to find that rebate agreements cannot be fully represented within ERP systems and spreadsheets, resulting in disparate sources of information being stored within ERP systems, spreadsheets and even people’s heads!  This management headache is multiplied when you consider these 3 major risks:

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Topics: Rebate Management, Rebate Management & Compliance, Rebate Management & Growth

4 alternative solutions for rebate accounting

Posted by Andrew Butt on February 7, 2017 08:00:00

Most businesses have a choice of 4 types of system to manage trading agreements:

1 — Your core ERP system

Basic ERP systems do not cope with vendor rebates very well at all.  Some ERP systems do have bolt-on vendor rebate modules. They tend to provide some flexibility but in a very complex environment the standard module is often not up to the job and incapable of modelling all the product / price / branch / margin combinations that might be required.  As a result, many companies still need to resort to extracting data into spreadsheets so that they can calculate rebates. 

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Topics: Rebate Management, ERP Vendor Rebate Modules

What is rebate management software?

Posted by Andrew Butt on February 1, 2017 08:00:00

Rebates were “invented” as a way of driving sales growth without simply reducing the contract price.  By agreeing these retrospective financial incentives based on actual sales, both the supplier and the distributor are working together to drive market share and growth. 

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Topics: Rebate Management

Buyers considerations for contract management software

Posted by Andrew Butt on January 10, 2017 08:00:00

If you’re responsible for procurement in a buying group, wholesale distributor, multi-site or large business (such as building materials, HVAC, plumbing and electrical supplies businesses or buying groups of all types) then it’s likely you have a need for a contract management system that can accurately deal with supplier rebates.

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Topics: Rebate Management, Contract Management

Why ERP won’t solve your complex vendor rebate accounting problems

Posted by Andrew Butt on January 3, 2017 10:43:00

Complex ERP and supply chain systems such as SAP are built to cover a broad range of requirements for organisations in a lot of different sectors.  If you have a need for niche, deeper industry specific functionality such as complex vendor rebate management, then trying to force your organisation’s needs and processes to fit with general ERP functionality limits your ability to maximise value from your vendor rebates.

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Topics: Rebate Management, ERP Vendor Rebate Modules

DealTrack's rebate management system and the NBMDA Annual Convention

Posted by Andrew Butt on October 31, 2016 18:29:11

The NBMDA convention in Chicago was once again the focus for distributors and manufacturers that serve the US independent building materials sector. The convention provided delegates with access to distributors, manufacturers and service providers who shared best practice, market trends and insights. 

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Topics: Rebate Management

Maximising vendor rebates through supplier consolidation

Posted by Andrew Butt on June 15, 2016 13:00:00

The challenge for companies who manage rebates not only with hundreds of suppliers but also multiple divisions of single suppliers is being able to see the complete picture when negotiating vendor rebate deals.

So let’s describe a scenario:

A leading building materials distributor deals with a large group company, which has a flooring division, a concrete products division, an aggregates division, etc. With each division there could be several rebate deals, different terms and rebate earning levels. As the buyer you could have multiple companies within your group all dealing with various divisions of this supplier. The complexity of deals and complexity of relationships is significant, and is made worse by disparate systems on both sides.

How do you get a complete picture of your trading relationships to enable negotiations to take place for vendor rebates — not to mention supporting your commercial objectives with regards to stock holding levels etc?

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Topics: Rebate Management, Industry Sector: Building Materials

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 rebates, retrospective discounts and other promotions.

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Topics: Rebate Management, Rebate Accounting