What is rebate management?
Rebate management encompasses the end-to-end process of designing, calculating, accruing, and paying rebates to customers or from suppliers. It includes contract setup, transaction tracking, automated calculations, accrual posting, and settlement.
Why are spreadsheets problematic for rebates?
Spreadsheets lack the auditability, automation, and scalability needed for rebate programs. Common issues include formula errors, version control problems, missed accruals, and the inability to handle complex tiered structures across thousands of contracts.
How are rebate accruals calculated?
Accruals are estimates of rebate liability based on current transaction volumes against contract terms. A proper rebate management system calculates accruals in real-time as transactions flow in, posting to the general ledger on a configurable schedule.