Rebate Management Explained

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

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.

A rebate management system allows you to accurately systemise and automate every element of a rebate deal:

  • Recording any type of pricing agreement eg “ship and debit” “retrospective tiered discount”
  • Automating the tracking of purchases and sales against those deals
  • Automated accruals recording
  • Automatic invoicing / supplier debits
  • Reporting, forecasting and information for commercial team negotiations

The benefits of a rebate management system include:

  • Simplified business processes due to automation
  • Minimised supplier disputes and faster resolution (where needed) through accurate audit trails
  • Improved cash flow through more timely rebate claims
  • Improved margin through accurate rebate and pricing calculations
  • Automation drives up the productivity of your commercial team
  • Improved profitability and growth through better supplier collaboration

Businesses gain significant ROI for a rebate management system if:

  • Their profit margin includes a substantial amount of rebate claims and/or
  • The annual value of rebates claimed exceeds the equivalent of $US5,000,000

For more information about potential ROI, review our guide What is the financial impact of implementing DealTrack? 

Financial Impact of Implementing DealTrack

Topics: Rebate Management, Rebate Accounting, rebate management system