Working with vendor rebates
A vendor rebate agreement is a contract agreement between a company and a vendor that outlines the terms and conditions for the company to receive a monetary reward for meeting predetermined purchase targets. This means that when the seller effectively sells the goods, the buyer receives monetary compensation from the seller for that sale. Rebate programs manage rebates; the rebate programs are responsible for controlling when, how much, and under which terms.
We will dive into the process of capturing and calculating rebates provided by vendors, where you can significantly reduce supply chain expenses and enhance your product margins. Let’s start by setting up this functionality.
Setting up
The first steps we need to do are in the Procurement and sourcing parameters form.
Navigate to Procurement and sourcing > Setup > Procurement and sourcing parameters. In the Rebate program tab, we will see the following form:
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