Rebate accounting: 10 reasons why rebates are not always claimed | Enable blog

▤ Summary

Rebate value is usually higher when calculated at the lowest level of granularity e.g. per product per branch per transaction type per day. Disparity between the supplier agreement and the information in the finance system Most companies use one software solution to create the physical supplier agreements and a separate finance system to calculate the rebate due.Of course, this is open to manual error and we have seen cases where an agreement has been produced, signed and filed away, but not even entered on the finance system. Deals are not clear, or not completely agreed Often deals are created and then negotiated in a rather adhoc fashion, with information distributed in spreadsheets, emails, documents and stored in people’s heads!When it’s time to make a rebate claim, companies often find that the supplier has a different understanding of the deal structure and therefore disputes the claim. Commercial team has no visibility of supplier products in your system We have seen cases where the commercial team had no visibility of live supplier product data as represented in their ERP system. So it is no surprise that the deals that were agreed were subsequently difficult to represent within the ERP system and claims were invalid.

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