A rebate is a type of financial payment intended to reward purchases. A vendor gives this delayed discount after a sale. The process of monitoring accruals and rebate claims is known as rebate management. Such an approach involves keeping track of purchases and sales concerning supplier agreements. When choosing a rebate management system, a few critical aspects come into play. Today, we take a look at these factors and how they affect businesses:
Types of rebates
Such a process is categorized into two primary types:
Customer rebates
Manufacturers and retailers handle customer rebates in this situation. However, if you are on the selling end of an agreement and accounts payable are involved, you will deal with customer rebates.
Vendor rebates
Distributors and retailers typically receive vendor rebates. They are rebate agreements in which suppliers send rebate payments. You will deal with these agreements if you are on the purchasing side of a specific rebate agreement and accounts receivable are involved.
Rebate management software
Rebate management registers agreements, keep track of purchases and sales connected to rebate agreements, and efficiently manages payments and claims. This software can help you maximize profits by estimating benefits, modeling proposals, calculating net margins, and influencing trade activity. In addition, the system gathers data from critical business systems, enabling the modeling and monitoring of deals and providing fast, accurate rebate information to the sales, purchasing, and finance departments.
Benefits of employing rebate management systems
Many manual financial processes can be streamlined and automated with the help of technology. It also provides tools such as a calculator and tracker to help with accounting. Some of the benefits of using this software are as follows:
Growing revenue prospects
Rebate management software can provide in-depth analysis and reports on your rebate program. These reports can then be used to improve the program and increase revenue.
Simplifies the administrative process
This program makes the refund management procedure transparent. The system handles many operations, such as negotiation, approval, administrative processing, payment timing, and charges. In addition, it implies that those with access to this technology can oversee the entire process from a single location, which helps to streamline and speed up the process.
Improves customer relations
Delayed rebate payments leave customers unhappy who rely on your assurances when making purchases. With this management system, the process runs smoothly, ensuring that clients receive their payments on time and are satisfied with your level of service.
Growth in order volume
This system enables you to make informed business decisions using forecasts, goals, and profits. These decisions may ultimately lead to higher order volumes, increasing your profit margin.
Best rebate management software
Here are the three best options considered by most businesses:
Vistex
Vistex provides businesses with a way to boost overall performance through incentives, rebates, and sales pricing programs. Businesses can use this platform to understand their pricing and go-to-market performance in detail. This program has many features, like contract management, pricing insights, trade programs with inventory management, and rebate management.
Vendavo Rebate & Channel Manager
This software organizes every refund and channel processing step to cut down on manual labor and unintentional mistakes. Teams can effectively manage rebates and assess the effectiveness of each refund by analyzing and tracking transactions across goods, consumers, and regions. In addition, it offers end-to-end reporting, deal creation, accruals, and payment generation.
Salesforce Rebate Management
Businesses can use this system to develop and expand incentive programs while keeping their channel partners. For example, within the Salesforce CRM, sales teams can identify cross-selling opportunities, examine their accounts’ incentive attainment, and get a complete picture of account activity, previous payouts, attainment progress, and account activity.
