How Supplier Rebate Works

You can use Channel Revenue Management to create supplier programs and activate them so that eligible supplier accruals can be automatically applied to receiving transactions that have been invoiced by the supplier, or to supplier invoices directly imported into Channel Revenue Management. Here's how

Overview

1. The wholesaler or retailer activates their supplier rebate programs.

2. The wholesaler/retailer buys from the supplier.

3. Supplier ships goods to the wholesaler/retailer and supplier invoices are created for the shipment.

4. The wholesaler or retailer receives the goods, makes corrections or accepts them.

5. Channel Revenue Management then processes these transactions to create accruals. This can be done in 2 ways:

   • Directly process the receiving transactions and their supplier invoices. Accruals can be accrued upon receipt of shipment or upon receiving the supplier invoice. Typically, accrual happens upon supplier invoicing.

   • Processes supplier invoices imported using CSV files to create accruals.

6. Earned accruals are then tracked, posted, and accrued.

7. Supplier claims are generated on demand or scheduled on a periodic basis.

8. Approved supplier claims are sent to Payables to collect payment from the suppliers, and accruals are relieved. If the supplier rejects a claim line, a manual adjustment can be created to reverse the accrual.

9. After payment, the claims are closed.

Business Process Flow