6 Common Problems with Accounting for Rebates

Posted by Andrew Butt on 16/10/17 17:04

As experts in rebate management, we have come across (and fixed) many problems with rebate management processes.  Here are the 6 most common things that businesses need to fix in order to improve profitability and growth.

1. Problems representing rebate agreements in core business systems

Companies tend to look for a specialist solution to rebate management when they reach a point where their core business systems are proven to be inadequate.  We have seen several scenarios:

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Topics: Rebate Management, IFRS 15

ERP agnostic rebate management system

Posted by Andrew Butt on 12/10/17 11:14

Today's IT landscape in most large corporates consists of disparate systems:

  • Cloud apps
  • On premise ERP systems
  • Cloud-based ERP
  • Local systems and spreadsheets
  • Others

As a result, the world has moved from ERP being at the hub to integration services being the key.

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Topics: ERP Vendor Rebate Modules, Mergers & Aquisitions

10 Reasons Rebate Accountants Fail to Claim 100% of Rebate Due

Posted by Andrew Butt on 09/10/17 16:47

Failing to claim 100% of rebate due can have a large negative impact on the bottom line for businesses in industries where rebate agreements are commonplace.  Finding out why that happens and how to stop missing vendor rebate claims is at the forefront of the minds of rebate accountants and financial leads the world over.

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Topics: Rebate Management, Rebate Accounting, rebate management system

5 key steps to manage rebates effectively and improve margins

Posted by Andrew Butt on 01/08/17 14:36

Rebate Management refers to the management of discount claims that are based on volumes of purchases over time.

To some companies, that rebate is treated as a bonus. But to others, rebates form a significant proportion of their revenue and for these companies accurate management is absolutely essential.

The management and processing of rebates is challenging, with significant financial risks if something goes wrong due to loss of data or human error.

Many rebate arrangements lack support in financial accounting systems, such as targeted incentives and multistrand rebates. Keeping a track of rebates when purchasing is decentralised or where the trading agreement is made by a buying group creates further challenges.

So what can purchasers do about these challenges in order to maintain an effective management process?

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Topics: Rebate Management

Profitable business growth for suppliers to the building industry

Posted by David Hunt on 25/07/17 08:23

Profitability for suppliers to the building industry - including building materials, plumbing, HVAC and electrical distributors – is often very closely dependent on the amount of rebate they can negotiate and claim.

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How do distributors track and manage “Ship and Debit” Rebate Agreements?

Posted by David Hunt on 04/07/17 15:04

A ship and debit agreement enables suppliers to sell their goods at a uniform price, while distributors can react to local market conditions and lower the price they use to sell to customers without losing all of their margin.

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Topics: Rebate Management & Growth

Rebate Management Explained

Posted by Andrew Butt on 04/07/17 14:59

Rebate management is the process of recording supplier agreements, tracking purchases and sales against those agreements, and managing accruals and rebate claims in a timely manner.  This blog and animation cover:

  • What is rebate management?

  • What is a rebate management system?

  • What are the benefits of having a rebate management system?

  • What types of company use rebate management systems?

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Topics: Rebate Management, Rebate Accounting, rebate management system

Post merger - do you need a consolidated ERP system to boost buying power?

Posted by Andrew Butt on 22/05/17 08:23

How do you achieve a single ERP system across all businesses in a newly merged organisation?  Is a single ERP even necessary?

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Topics: ERP Vendor Rebate Modules, Mergers & Aquisitions

Due Diligence pre-merger

Posted by Andrew Butt on 18/05/17 09:14

Merger and Acquisition (M&A) activity often starts well before the actual merger with a period of due diligence where the value of the acquisition is assessed.

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Topics: Mergers & Aquisitions

DealTrack post merger and acquisition

Posted by Andrew Butt on 11/05/17 08:34

We are witnessing a huge volume of Merger and Aquisition activity. A great deal is written about the operational, organisational and process challenges post merger or acquisition by Bain, McKinsey, PWC, KPMG, Ernst Young  and other M&A consultancies who assist businesses with best practice for Integration Management Offices (IMOs).

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Topics: Mergers & Aquisitions