Promotional Merchandise - Managing a Volume Rebate Agreement

Confirm deal terms in writing: threshold, rebate percentage, qualifying period, and eligible categories. Attach to the client account record.

Review account pricing, trading terms, and invoicing currency. Ensure the rebate agreement is referenced on the account record.

As orders are invoiced, track total invoiced value against the rebate threshold at each invoicing cycle.

When cumulative spend reaches 80% of the threshold, notify the client to reinforce the incentive and avoid end-of-period surprises.

At period end once threshold is confirmed reached, raise a credit note referencing the rebate agreement, qualifying period, and total invoiced value.

Reconcile the rebate credit against the client account in Xero, confirm settlement, and record the outcome for next period's agreement review.

We agreed a volume rebate with a key client but there is no central record of the deal terms, so at year-end we are always scrambling to work out what was actually agreed.

We cannot see in real time how close a client is to hitting their rebate threshold, so we only find out after the fact and have to retrospectively issue a credit that was not budgeted for.

Rebate credits get raised in a hurry at period end without a clear audit trail, making it impossible to reconcile what we have paid out against individual client accounts.