Entering supplier rebates

DFBDFB Member Posts: 41
edited December 2016 in Accounts Hosted
We receive a monthly rebate from a supplier to compensate for goods we sell at or below cost, due to contractual pricing arrangements. How do I record the supplier rebate when it comes through? Should it just be entered as a credit against Cost of Goods Sold, or should it go down tot he Item and Customer Level? Any feedback would be appreciated.

Comments

  • MirkoMirko Alumni Posts: 2,054 ✭✭
    edited November 2015
    Hi DBF welcome to the Reckon Community. please see this thread https://community.reckon.com.au/reckon/topics/how_do_i_enter_a_supplier_return_to_my_cheque_account Graham's answer was quite elaborate. Let me know if it helps. Cheers, Mirko.

  • Kathy MackinlayKathy Mackinlay Member Posts: 182
    edited December 2016
    Hi DFB, I believe the rebate should be input as an income item.  Enter and credit note to the supplier and take if off what you pay them (if that's how they do it) and charge the credit note to an income item called rebates received.    If they send you a cheque or direct credit receipt the money to the rebates received income account.  Hope that helps.

  • DFBDFB Member Posts: 41
    edited December 2016
    Thanks Kathy. I'll try that way and see how it works out. Thank you for your sage advice.
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