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?