What are customer rebates?
Rebate agreements come in all shapes and sizes. Depending on your specific trading partners you may only be aware of a fraction of these or you may be deep in the detail of each and every one — from the simplest to the most complex.
With this myriad of rebate agreements, there is often a lack of consensus around terminology and processes. Some of this is down to individual businesses being unique and having their own internal deviations, but some can be down to misunderstanding the difference between vendor and customer rebate.
The distinction between the two types of rebate is vital if you happen to be involved in both, but due to the subtlety, many people involved in rebate may be unaware that rebate can be classified into these two forms.