Rebate management blog - Page 24 - Enable

It's all too easy for revenues to simply leak away if rebates are not managed and accounted for correctly. Several companies have made the headlines in recent years and IFRS 15 looks set to put rebate accounting firmly in the spotlight. The necessity for businesses to have an effective management system in place to deal with complex trading agreements has become more apparent. We’ve seen that complex trading agreements such as supplier rebates often involve incredibly complicated performance-ba...

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 lev...

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,...

It's a complex task managing multiple vendor rebate deals across multiple vendors, multiple product lines, and in some cases multiple units of measure. 2 for 1, multi-pack discounts, retrospective discounts, limited lifetime promotions, not to mention awards points and prizes make rebate accounting a very complex job. By way of illustration, we have worked on one example where there were 300 deals written into 1 vendor contract. Without the right tools and information rebate accountants can st...

How can procurement become more aligned with, and demonstrate its impact on, the main measures of business success? This question was posed recently in an article published by the highly respected Future Purchasing Group. Their article “procurement business impact — charting your financial impact” explored the impact that procurement can make on a company’s sustainable shareholder value — the core measure of any company’s success. The article defined four key shareholder value drivers: 1. Accel...