Streamline and automate rebate management to increase margins

Offering your customers and vendors rebates and royalty deals is key to building brand loyalty and has a measurable impact on your company’s margins. Rebates also influence your product pricing strategy and impact accruals, payments, deductions, and revenue.

However, keeping track of rebate and royalty programs and calculating them accurately can quickly become time-consuming and tedious without the right tools.

The rebate management module in Dynamics 365 Supply Chain Management, now available for public preview, reduces the administrative burden associated with these programs. The tool tracks and maintains rebates and deductions in a central location, where everyone can create, review, and process them effectively.

Centralized rebate management

The rebate management module gives you a central place to manage all your customer rebates, customer royalties, and vendor rebates, including the ability to:

  • Define complex royalties, customer rebates, vendor rebates, and vendor rebates based on customer sales.
  • Manage complex rebates where items or groups don’t share the same calculation basis, durations, or rebate amounts or rates.
  • Manage multiple concurrent and overlapping rebate agreements for the same vendor or products and can net out one rebate against others.
  • Track rebate accruals and handle dissimilar time periods for accrual and claim of rebates.
  • Improve cash flow forecasting with an effective claims process.
  • Provide flexibility with rebate calculation.
  • Easily share reports for enhanced visibility.

Cross-company rebate management

The rebate management tool centrally manages the rebates and payouts across the company and easily calculates them on sales across multiple legal entities.

Real-time reporting

With the rebate transactions and statement report, you gain visibility into spend versus rebates, which helps you track how much you’ve spent on claimed rebates, versus what’s outstanding. You can also share reports with customers.

Streamlined rebate process

The streamlined rebate process includes accurate provisioning, claims, target transactions, and write-offs — and it all starts with the rebate deals. It is common with high-tech wholesalers for vendor rebates to be based on sequential sales. The rebate management module supports this scenario by allowing the vendor rebate agreement to specify the conditions under which the vendor qualifies for a monetary reward if a buyer achieves the product sales targets. Flexible rebates can be based on the sales quantity, or value of the price basis, which can include the sales price, latest purchase price, average purchase price over a defined period, and FIFO purchase price by periodic calculation.

Flexible calculations

A complex rebate mechanism requires calculation flexibility. With the rebate management module, a calculation can be applied to a single customer, or to groups of customers, or to all your customers and products. Rebates with multiple detail lines can have different qualifying date ranges. The provision and claim periods may differ, for example, by processing provisions daily and claims once a month. The rebate management module enables you to configure rebates based on many diverse parameters such as a percentage, rate, or fixed amount.

The module provides four core calculation methods (stepped, cumulative, rolling, and total). The configurable transaction types enhance rebate calculation flexibility. The multiple concurrent and overlapping rebates are able to set net against others by using a reduction principle in periodic processing.

Next steps

To learn more about the capabilities of the rebate management module, see Rebate management module overview.