How to use? The rebate can be paid in cash, additional volumes of goods, delivery benefits. It is important to correctly account for the rebate in accounting and tax accounting to avoid fines and sanctions from regulatory authorities.
In this article:
What is a retro bonus?
Types of retro bonuses
The principle of the retro bonus using a simple example
Calculation of retro bonuses
Correct execution of the retro vietnam telegram bonus agreement
Retro bonus in accounting
Retro bonus in tax accounting
Frequently asked questions about the rebate bonus
In-Depth Guide: How to Cut Your Ad Costs by 25% with Artificial Intelligence
Download for free
What is a retro bonus?
A retro bonus, retro discount or rebate is a reward received by a distributor from a manufacturer or supplier in the event of fulfilling the terms of the contract. For example, to receive a 5% discount, a distributor must make purchases in the amount of 10 million rubles during the year. In other words, a rebate gives the seller the opportunity to save on purchases in the future.
What is a retro bonus?
Source: shutterstock.com
Retro bonus payments are made primarily to establish productive cooperation with retailers, to encourage partners to fulfill contractual obligations. At the same time, retailers will increase purchases and achieve growth in sales to end consumers in order to make the next purchase on favorable terms.
Providing discounts is always aimed at encouraging and stimulating. If we talk about retro bonuses, they are used for the following purposes:
stimulating sellers and distributors to increase sales of products;
establishment of long-term mutually beneficial cooperation;
motivation to decisively fulfill the terms of the deal;
management of market processes, additional control mechanism.
The conditions for calculating the retro bonus must be specified in the contract, as there may be significant differences between them. The system of retro bonuses for buyers is flexible and can be successfully applied when conducting various transactions.
Typically, distributors or retailers are entitled to discounts in exchange for meeting or exceeding the following obligations:
achievement of sales plan indicators - selling the agreed quantity of goods or receiving revenue in the required amount indicates market activity; the use of this indicator facilitates the management of sales of specific types of products or in a certain market segment;
impeccable monetary discipline - implies unconditional compliance with all requirements specified in the contract, including payment and delivery deadlines, for which a special bonus may be provided;
good distribution indicators - their achievement is the basis for rewarding counterparties, provided that the required volume of products is delivered to retail chains on time; the quality of suppliers' work can also be assessed by other parameters;
new clients - both distributors and manufacturers are interested in expanding the distribution network, and they can assign special bonuses for this.