Year end revenue recognition — rebate accruals
How was your last year end? We’re not referring to the actual outcome, but the process of getting 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.
In fact, in industries where rebates are an important part of normal trading, the rebate accountant is often the key to having a true picture of your profits and losses.