Sales Rebate

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Is there an in-the-box solution to recording the liability for a rebate each time an item is sold to a particular customer? (Using GP10). e.g. Customer agrees to pay $300 for each item but wants a $100 rebate at the end of the year on each item. We need to bill customer $300 but I want to recognize the rebate liability at the same time I recognize revenue.

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Richard Whaley 25,195 on at

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I believe that Ethotech's Commission Plan will do this. You would setup the customer as a "rep" and have them earn commissions/rebates.

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L Vail 65,271 on at

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Taking this approach, couldn't you use the out-of-the-box commissions? My initial question is how is the rebate amount calculated? Is it a set dollar amount or a percentage of the sale amount?

Kind regards,

Leslie

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Community Member on at

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Leslie--It is a set dollar amount. $100 of this specific item gets paid as a rebate.

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L Vail 65,271 on at

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David,

This is more problematic. The out-of-the-box commissions module won't handle this type of thing automatically. You could still enter it manually, but that's not an ideal solution (depending on volume).

My dream would be to have a document created that you could use to 'pay' the rebate to the customer, but really as a separate document. Would that be more like what you want?

That being said, let's talk accounting. When the sale is posted, do you want the distribution to look similar to this:

dr accounts receivable $300

cr rebate payable $100

cr sales $200

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