Rebates were “invented” as a way of driving sales growth without simply reducing the contract price. By agreeing these retrospective financial incentives based on actual sales, both the supplier and the distributor are working together to drive market share and growth.
Rebate agreements are becoming increasingly more creative and many companies are finding that “standard” business systems don’t facilitate this creativity.
Whilst many core business systems have some functionality to help monitor trading agreements that involve vendor rebates, most have neither the flexibility nor the extensive range of functionality that is needed to support the increasingly complex world of rebate management.
For many, that lack of functionality has resulted in missed rebates and poor accrual accounting. But worse than that, if your business systems don’t support rebate accounting fully, then the whole purpose behind creating deals involving rebates — a means to influence business growth — is missed.
Added to that, IFRS 15 is moving auditors to verify that companies who make trading agreements involving rebates have a robust process in place for determining appropriate accruals and profit reporting.
This need for an auditable process and the desire to use very creative rebates as a vehicle for growth has resulted in a new paradigm of business system — the Rebate Management System. A rebate management system collects information from core business system(s), enables deals to be modelled and monitored, and feeds back timely accurate rebate information for sales, purchasing and finance.
DealTrack Rebate Management Software was built from the ground up to be DEAL-CENTRIC. The system integrates with ERP systems, and links ERP data to rebate deals in DealTrack in order to calculate accurate and granular rebate earnings. DealTrack takes care of all the detailed information and business processes needed in order maintain compliance and facilitate business growth through optimised rebate management.
To find out more about the capabilities of Rebate Management Software, download our buyers checklist. This provides a great review of:
- the need for a systemised approach to rebate management
- the alternative solutions
- a buyers’ checklist for choosing a suitable system