3 ways rebate management software increases profit


3 ways rebate management software can help increase profitability

The Deal EconomyMay 9, 2019


For any business to be successful, it’s vital that a profit is made enabling continued success and to provide opportunities for growth and development. But, making a profit isn’t always as easy as it may seem. Once all the necessary expenses and costs have been paid out, its then essential enough sales have been made just to break even, let alone have anything extra to realize a company’s ambitions.

Although this can be extremely challenging at times, it’s also possible to increase the profitability of your business by spotting opportunities. Collecting rebate agreements on time, consistently and accurately could be one of these opportunities. 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.

Traditional methods of rebate management can eventually lead to missed rebates and poor accrual accounting.

If you manage procurement contracts with complex supplier rebates, then you may have reached the point where your current contract management system or ERP system doesn’t provide the functionality you need. This is because they do not cope with complex vendor rebates very well and we have found that in a very complex trading environment the standard module is incapable of modelling all the product / price / branch / margin combinations that might be required. This is where a rebate management system comes in.

What is a rebate management system?

A rebate management system collects information from core business system(s), enables deals to be modelled and monitored, and feeds back timely accurate rebate information for sales, purchasing and finance. You might find this video useful if you’ve just started researching how rebate management systems work.

Unlike most traditional contract management systems and ERP procurement functionality, Enable handles over 90 different types of rebate agreement as standard. This is complimented by timely updates of purchasing activity from disparate systems and the ability to model and approve new trading agreements.

With this in mind, let’s dive in to the 3 ways that Enable can help to increase the profitability of your business.

How Enable can help increase profitability

1. Control

Take control of retrospective income from your suppliers, manage receivables for rebates, special pricing agreements, and much more. Enable handles the day-to-day control that is needed for accurate rebate processing. By being able to model all trading agreements accurately and gather data from disparate business systems, Enable can tell you exactly what rebate to claim, when and from whom.

2. Maintain compliance

Being systemised, with all the deals, transactions, rebates and margins details held within Enable, auditing is made easy. IFRS 15 is driving auditors to review not only the amounts that are accrued for rebate income, but the process behind the calculation. Enable provides a very easy solution, with complete transparency of all rebate earnings and detailed drill-downs into the supporting data and calculations.

3. Facilitate growth

Enable takes care of all the detailed information and business processes needed in order to facilitate business growth through optimized rebate management. This can be achieved in three ways:

  • Giving buyers full visibility of the information on volumes, pricing and targets to negotiate smarter deals;
  • Providing the user visibility and automated alerts, such as when a target is about to be reached or is at risk of being missed. This means that smarter decisions can be made when making recommendations at point of sale;
  • No more guesswork in terms of the impact rebate could have on margin — sales people have all the information they need to avoid providing too high a price and losing the deal or too low a price such that margin is adversely impacted.


If your business doesn’t support rebate accounting fully, then the whole purpose behind creating deals involving rebates to increase profit, is missed. Enable provides a structured, intelligent approach to rebate management, with advanced analytics which allow your business to manage complex trading agreements reliably and efficiently, minimizing risk and uncertainty.

Enable is already proven, with leading companies around the world experiencing profitability increases. Take a look at our website to find out more.

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