Utilizing indirect rebates

An indirect rebate is a rebate earned or paid on a transaction by a party which is not one of the two trading partners directly involved in the transaction, (i.e., is neither the purchaser nor the seller).

Enable supports two forms of indirect rebate:

1. End purchaser (contractor / customer) agrees a rebate with a manufacturer, but the sales of goods are transacted between the purchaser and the distributor.
2. Contractor / customer is usually the Enable channel owner.

1. Distributor agrees rebate with the end purchaser, but the transaction takes place between the distributor and a contractor
2. Eg: Distributor may give rebate to a contractor who is buying goods from them. However, the contractor is working for the house builder and the house builder have separately negotiated further rebate to be paid directly to them by the distributor.
3. Distributor is usually the Enable channel owner.

Setting up program lines with indirect rebates.

If indirect rebates have been enabled in your channel, you will be able to select which of your trading partners will be included when configuring the program line. The programs’ trading partner will be automatically selected, with the others unselected by default. You can then include any additional trading partners manually, or by creating inclusion or exclusion rules.

Then, for dimensions that have been configured at the Trading Partner level, you may select dimension items from any included trading partners.

For supplier rebates, for example, a ‘Product’ dimension will likely be configured at the supplier level. Thus, changing the suppliers on the program line will change the products available to choose from for the program line.

For customer rebates, on the other hand, a 'Customer Location’ dimension (or ‘Members’ dimension if you are a buying group) will likely be configured at the customer level. Thus, changing the customers on the program line will change the customer locations available to choose from for the program line.

When additional trading partners are chosen, transactions for these trading partners will also generate earnings for this program line.

Reporting Indirect rebates

There is a filter in the Program Earnings Report called '[Trading Partner] on transaction'. This will allow you to choose one or more trading partners and run a report that only shows earnings where the chosen trading partners appear on the earning transactions.

For example, we have a trading program with the supplier Nuova Osmo. GROHE has been selected as the indirect supplier on this program line.

There has been one purchase made by GROHE toward this program line, and the transaction has been uploaded into the system with the ‘Supplier reference’ as GROHE’s reference. When we run a Program earnings report with ‘Supplier’ as Nuova Osmo and ‘Supplier on transaction’ as GROHE, we get the following result:

Although GROHE is the supplier listed on the transaction, it is the Nuova Osmo program that is earning rebate, which is why Nuova Osmo is the ‘Supplier’ on this report. The ‘Trading Partner on transaction’ filter allows you to view how one or more indirect trading partners are contributing to your program line.

Indirect rebates can be configured for your channel by Enable staff. If you would like this enabled in your channel, please get in touch with us.