• Lewis Barnard 28/06/2019 12:12PM

    In Source to Contract

    Rebates - how do you treat them?

    If you claim a rebate as part of your contract with a supplier, how do you report these? Are they classed as savings? Do they get added to the top-line? Do they filter back down to the relevant budget holder to be reinvested?

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  • Answers (2)

  • Michael Angel

    04/07/2019 09:57AM

    Historically I have found it varies by the goods/services you are buying. I have found with goods, tends to have been classed as savings (I still have reservations if it is a saving if it is a volume based rebate meaning you have to spend more to achieve a small return). If it is services, it is filtered back to the budget holder and reinvested back into the service. for example media buying and marketing is something I have seen this with.

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  • Keith Bird

    17/07/2019 12:55AM

    I support Michael Angel view. Usually in Indirect Procurement a rebate is established and is tracked as a savings opportunity against the spend. This is one way, another way is to invest in SRM and business partnering to leverage the service, innovation which add top line revenue to the company. procurement now days needs to bring in commercial efficiency, savings and revenue.

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