Understanding Vendor Rebate Rule Types Concept Understanding Vendor
Understanding Vendor Rebate Rule Types Concept
Understanding Vendor Rebate Rule Types
Understanding Vendor Rebate Rule Types Step 1 Stepped/Standard is the simplest vendor rebate rule type and is based on amounts or quantities. Standard/Stepped rebate rule types specify a rebate factor percentage based on the defined purchase threshold levels during the rebate agreement life. Usually the higher the threshold the greater the rebate percentage. Thus awarding a greater vendor rebate amount for a supplier who makes large purchases.
Understanding Vendor Rebate Rule Types Step 2 For example, a rebate agreement is negotiated with a supplier that states: The purchases for the quarter were 650, 000 USD. The rebate at the end of the quarter was 13, 500 USD.
Understanding Vendor Rebate Rule Types Step 3 Retrospective rebate rules types are based on amounts or quantities. Retrospective rebate rule types specify a rebate factor percentage based on the defined purchase threshold levels during the rebate agreement life. Increases in purchased amounts can reach a higher threshold level, which changes the rebate factor for additional purchases as well as all the purchases to date, within the rebate agreement life.
Understanding Vendor Rebate Rule Types Step 4 For example, a rebate agreement is negotiated with a supplier that states: The purchases for the quarter were 650, 000 USD. The rebate at the end of the quarter would be 19, 500 USD.
Understanding Vendor Rebate Rule Types Step 5 Flat amount rebate rules types are based on amounts or quantities. Flat rebate rule types specify a flat amount based on the defined purchase threshold levels during the rebate agreement life. Flat rebate amount can be either prorated or not prorated.
Understanding Vendor Rebate Rule Types Step 6 For example, a rebate agreement is negotiated with a supplier that states: The purchases for the quarter were 150, 000 USD. The rebate at the end of the quarter was 3, 500 USD.
Understanding Vendor Rebate Rule Types Step 7 Another example when not using the prorate option states: The purchases for the quarter were 150, 000 USD. The rebate at the end of the quarter was 6, 000 USD.
Understanding Vendor Rebate Rule Types Step 8 Growth Bonus rebate rule types are based on a specified increase in purchases for a specific item or item category. For this rebate rule type, you have the ability to define the items and or item categories that will be considered for the growth bonus, the target percentage increase or growth that will trigger the rebate, the purchase amount or quantity for each item or item category that will be the basis to determine the growth percentage. The current period purchase volume will be compared to these values to determine whether the growth targets were achieved. You can also define rebate per growth percentage threshold levels.
Understanding Vendor Rebate Rule Types Step 9 For example, a rebate agreement is negotiated with a supplier that states: The purchases were as displayed in the table below, the rebate at the end of the quarter was 1, 000 USD.
Understanding Vendor Rebate Rule Types Step 10 Marketing Contribution rebate rules types are based on amounts. With the rebate amount being based on amount or percentage. Unlike the other rebate rules types, the marketing contribution is independent of the purchase transactions. It is a one-time rebate for the entire rebate agreement life.
Understanding Vendor Rebate Rule Types Step 11 For example, a contract is negotiated with a supplier for the quarter that states: The purchases for the previous quarter were 650, 000 USD. The rebate at the end of the quarter was 9, 750. 00 USD.
Understanding Vendor Rebate Rule Types Step 12 This is an example of a quarterly rebate agreement using a retrospective rule with a quantity basis and marketing contribution, where the rebate agreement with a supplier contains items A, B, and C and a unit of measure as displayed in the top box. The rebate rules for the rebate agreement appear in the lower box.
Understanding Vendor Rebate Rule Types Step 13 Suppose the purchases for the same quarter last year were 300, 000 USD. Below is a table that illustrates the purchases for the current quarter. The rebate at the end of the quarter was 10, 200 USD.
Understanding Vendor Rebate Rule Types Step 14 Here is another example of a rebate agreement using a retrospective, marketing contribution, and growth bonus rules combined as displayed below.
Understanding Vendor Rebate Rule Types Step 15 The purchases for the quarter were 650, 000 USD. The purchases for the same quarter last year were 600, 000 USD. The rebate at the end of the quarter is 26, 500 USD.
Understanding Vendor Rebate Rule Types Step 16 You have successfully completed understanding Vendor Rebate Rule Types. End of Procedure.
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