7 common problems with accounting for rebates

Posted by Andrew Butt on 15-Jun-2018 14:23:00

As experts in rebate management, we have come across (and fixed) many problems with rebate management processes.  Here are the 7 most common things that businesses need to fix in order to improve profitability and growth.

1. Problems capturing 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

IFRS 15: Creating SMART deals to aid purchasing compliance

Posted by Andrew Butt on 09-Mar-2017 08:00:00

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.

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Topics: IFRS 15

IFRS 15 – 7 steps to prepare for January 2018

Posted by Andrew Butt on 16-Feb-2017 08:00:00

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 ultimately profit margins.  IFRS 15.51 goes on to say that “Variable consideration is also present if an entity’s right to consideration is contingent on the occurrence of a future event.”  One can imagine this might stretch to something like “If you run 4 marketing events a year to promote our product, we will provide an extra discount of x%”.

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Topics: IFRS 15