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The Deal Economy

Our products drive profitable growth with your trading partners. We’re rethinking the way the deal economy works.

129 million reasons to address the symptoms of poor rebate accounting

The Deal EconomyMarch 28, 2017

Today it was announced that Tesco has agreed to a £129m fine to avoid prosecution by the FCA for overstating its profits in 2014. The root of the problem is believed to be premature recognition of rebate income from suppliers. For organisations that benefit from supplier or vendor rebates, the spectre of incorrectly reported rebate income and any resulting audit investigation should weigh heavily on the minds of finance teams and at board level. There have been calls from the Financial Reportin...

Six ways to improve your rebate accounting processes

The Deal EconomyMarch 22, 2017

The complexities involved in managing complex trade agreements and accounting for rebates and retrospective discount payments are often difficult to model in manual systems such as spreadsheets and basic accounting software. Organisations opting to calculate, forecast and accrue rebate income in this way leave themselves at risk of inaccuracies, missed opportunities and supplier disputes. Here are 6 ways to improve rebate accounting processes in order to: remove the risks associated with manual...

Four rebate accounting mistakes to avoid

The Deal EconomyMarch 14, 2017

Businesses managing complex trading agreements face several hurdles that are difficult to overcome entirely when using manual processes and spreadsheets. Lack of transparency, inaccuracy and limited control of rebate accounting processes is common and the ramifications of these can have a damaging effect on profit, compliance, cash flow and business growth. For retailers, wholesalers and large buying groups, solving these issues to ensure receipt of the correct amount of rebate income and achiev...

IFRS 15 — creating smart deals to aid purchasing compliance

The Deal EconomyMarch 9, 2017

In our online guide “IFRS 15 — 7 steps to prepare for January 2018” one of our suggestions is to review every deal in every contract and make it SMART. We think that whilst it’s a good idea as part of financial compliance, SMART deals are good for anyone who manages a contract with complex rebate deals, so we thought we would share it with you. A SMART deal is like a SMART objective in project management terms, namely: Specific Be VERY specific. If a deal refers to “across all product lines”, i...

Rebate management for building materials distributors

The Deal EconomyMarch 1, 2017

Missing out on claiming manufacturer’s rebates is like negotiating a higher price with your suppliers. It simply shouldn’t happen! That's why we created {{cta('a2f66229-8bba-41bc-b443-cb17df844880')}} — THE rebate management system chosen by several building materials wholesale distributors and buying groups. There are many examples in the building materials business where, instead of agreeing an up-front discount, discounts are given in the form of rebates based on actual volumes purchased. Fo...

IFRS 15 — seven steps to prepare for January 2018

The Deal EconomyFebruary 16, 2017

IFRS 15 ‘Revenue from Contracts with Customers’ comes into force on 1st January 2018. The new financial reporting standards (IFRS 15) have a particular impact for businesses who regularly have contracts that contain “elements of variable consideration”. IFRS 15:51 provides us with examples of “variable consideration” which include rebates, incentives, refunds, performance bonuses, credits, price concessions, penalties or other similar items – items that impact the real net-net price and ultimat...

Three major risks of not having a robust rebate management system

The Deal EconomyFebruary 15, 2017

It isn’t unusual to find that rebate agreements cannot be fully represented within ERP systems and spreadsheets, resulting in disparate sources of information being stored within ERP systems, spreadsheets and even people’s heads! This management headache is multiplied when you consider these 3 major risks: lack of control over profitability, with poor understanding of true margin at point of sale, and roughly estimated true product costs feeding into profit calculations missed revenue opportun...

Four alternative solutions for rebate accounting

The Deal EconomyFebruary 7, 2017

Most businesses have a choice of 4 types of system to manage trading agreements: 1 — Your core ERP system Basic ERP systems do not cope with vendor rebates very well at all. Some ERP systems do have bolt-on vendor rebate modules. They tend to provide some flexibility but in a very complex environment the standard module is often not up to the job and incapable of modelling all the product / price / branch / margin combinations that might be required. As a result, many companies still need to res...

What is rebate management software?

The Deal EconomyFebruary 1, 2017

Rebates were “invented” as a way of driving sales growth without simply reducing the contract price. By agreeing these retrospective financial incentives based on actual sales, both the supplier and the distributor are working together to drive market share and growth. Rebate agreements are becoming increasingly more creative and many companies are finding that “standard” business systems don’t facilitate this creativity. Whilst many core business systems have some functionality to help monito...

Buyers considerations for contract management software

The Deal EconomyJanuary 10, 2017

If you’re responsible for procurement in a buying group, wholesale distributor, multi-site or large business (such as building materials, HVAC, plumbing and electrical supplies businesses or buying groups of all types) then it’s likely you have a need for a contract management system that can accurately deal with supplier rebates. Rebates were originally designed to aid both the manufacturer and the distributor to grow product sales without resorting to a price war. By maintaining a set price th...

Why ERP won’t solve your complex vendor rebate accounting problems

The Deal EconomyJanuary 3, 2017

Complex ERP and supply chain systems such as SAP are built to cover a broad range of requirements for organisations in a lot of different sectors. If you have a need for niche, deeper industry specific functionality such as complex vendor rebate management, then trying to force your organisation’s needs and processes to fit with general ERP functionality limits your ability to maximise value from your vendor rebates.The best of breed vs ERP debate has raged ever since ERP packages became availab...

DealTrack’s rebate management system and the NBMDA annual convention

The Deal EconomyOctober 31, 2016

The NBMDA convention in Chicago was once again the focus for distributors and manufacturers that serve the US independent building materials sector. The convention provided delegates with access to distributors, manufacturers and service providers who shared best practice, market trends and insights. DealTrack exhibited at the convention in partnership with sales-i. sales-i is a sales performance tool created to make selling less stressful and more profitable for any product-based salesperson...

ROI calculator for rebate management systems

The Deal EconomyAugust 23, 2016

DealTrack is aimed at those businesses for whom a significant portion of their margin results from vendor rebates, retrospective discounts, tiered discounts and the like. Businesses in the building materials, wholesale distribution and those who are part of buying groups frequently trade on these types of deal. Since we first released DealTrack we have monitored the return on investment that has been enjoyed by users of this rebate management system and I wanted to share some of the facts and fi...

Builders merchants — the road to procurement excellence

The Deal EconomyAugust 11, 2016

Builders merchants, building materials companies and building trade suppliers are working in a competitive industry in which profitability is heavily reliant on procurement to strike the right deals. We’ve recently been working with Richard Piekar, a global procurement expert, and wanted to share with you his experience of developing procurement excellence at CRH plc. CRH is a leading global building materials group employing over 89,000 people at around 3,900 locations worldwide. Richard’s jour...

Webinar — manage complex vendor rebate deals and drive margin

The Deal EconomyJuly 29, 2016

Summary: Multiple vendor rebates which are very often complex in nature can have a significant impact on the effectiveness of financial and procurement teams, profit margins and company performance. Dealtrack's rebate accounting experts held a webinar to discuss ways to 'Manage complex vendor rebates deals and drive margin'. Speakers: Richard Piekar - a seasoned global procurement professional who has spent many years working for enterprises in the Building Materials sector. Richard provi...

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