Contents
What is a rebate
A rebate is a mechanism for returning a portion of funds that is carried out after the purchase of goods and the fulfillment of contract conditions. This payment is usually made to distributors or dealers. In Russian practice, the term "retro-bonus" is more commonly used. The main conditions for receiving a rebate include obligations to purchase goods for a certain amount or in a specified volume, as well as their sale at retail locations.
An example can be a situation where a supplier purchases cosmetic products from a manufacturer for a total of 500,000 rubles. In this case, the rebate according to the contract amounts to 5%, which means that after the transaction is completed, the seller returns 25,000 rubles to the buyer.
Why is a rebate needed
Rebate systems, like other bonus programs, help companies find stable partners and gain their trust. Distributors who receive significant discounts on the purchase of goods are less likely to seek other suppliers, making the partnership beneficial for both parties. In addition, rebate programs contribute to increasing the motivation of distributors, encouraging them to better promote products in their regions, increase sales volumes, and strictly adhere to the terms of the deal.
However, rebate programs also have significant drawbacks. The main one is the high risk of disputes arising between the parties, especially if the conditions for the accrual and return of bonuses are not clearly stipulated. Dealers, in turn, can use the received reward at their discretion or within the framework of the contract. For example, they may offer a discount to the end customer or invest funds in marketing activities. Sometimes the manufacturer strictly defines that the rebate must be used for brand development.
What types of rebates exist
Rebates can take various forms. Here are some of them:
- Bonus goods: the buyer receives "free" goods worth a certain amount, which is one of the most common partnership options.
- Money: this is a percentage of the transaction volume, the terms of payment for which are specified in the contract.
- Option: the right to purchase goods under certain conditions within a limited time.
- Services: for example, free delivery.
- Credit note: mutual settlement of debts between the supplier and the buyer considering the rebate.
Rebate programs are often used in wholesale sales and the B2B segment, providing official dealers in different regions with significant advantages. The structure and conditions of rebate programs can vary depending on the specific needs of the business. Sometimes the contract stipulates additional reward criteria: for example, achieving 100% of the plan may provide a bonus of 4%, while 120% may yield 5%.
How to register a rebate
Legally, a rebate is regulated by Federal Law No. 381 "On the Basics of State Regulation of Trade Activities in the Russian Federation." In 2016, amendments were made to it that reduced the maximum rebate amount from 10% to 5%. It is important to properly formalize the rebate legally: it must be clearly stated in the contract, and it is advisable to draft an additional agreement for each refund.
There are several methods for accounting for rebates. According to Article 265 of the Tax Code of the Russian Federation, the seller accounts for the bonus as an expense, while the buyer accounts for it as income. To pay a bonus as a percentage of the sale of goods, a consignment agreement is often used, which regulates the relationship between the shipper and the consignee. If the goods were not sold, they are returned. In this case, the key condition for receiving the bonus becomes the sale of the goods.
Sometimes a rebate is formalized as a discount for previously shipped goods, provided after the tax period. For this, it is necessary to draft a negative invoice. The use of software, such as "1C," allows for effective calculation and recording of rebates in the accounting system. However, all these procedures require thorough work from financial specialists and the preparation of additional documents, complicating the final accounting of funds.