This procedure explains how to enter rebates received from vendors.
Important
Rebates should never be posted against an inventory account. This will cause inventory reconciliation discrepancies.
Scenario 1 – Rebate was not calculated in Inform and a check is received from the vendor
- Go to Accounting > Accounts Receivable > Cash Receipts Posting, and click the Miscellaneous tab.
The check is input in the miscellaneous cash receipt screen. In the GL distribution section, input the rebate income account. This transaction will debit the bank and credit rebate income.
Scenario 2 – Rebate was not calculated in Inform and a credit is received from the vendor
- Go to Accounting > Accounts Payable > Invoice Entry.
Input the credit in the accounts payable invoice entry screen as a negative invoice. In the GL distribution section, input the rebate income account. This transaction will debit accounts payable and credit rebate income.
As a result, there will be a credit on the vendor’s ledger which can be applied against a future invoice.
Scenario 3 – Rebate is calculated in Inform and a check is received from the vendor
- Go to Accounting > Accounts Receivable > Cash Receipts Posting, and click the Miscellaneous tab.
When the rebate is earned, an entry to the general ledger is automatically generated – debiting rebates receivable and crediting rebate income.
The check is input in the miscellaneous cash receipt screen. In the GL distribution section, input the rebates receivable account. This transaction will debit the bank and credit rebates receivable.
Scenario 4 – Rebate was calculated in Inform and a credit is received from the vendor.
- Go to Accounting > Accounts Payable > Invoice Entry
When the rebate is earned, an entry to the general ledger is automatically generated – debiting rebates receivable and crediting rebate income.
The credit from the vendor is input in the accounts payable invoice entry screen as a negative invoice. In the GL distribution section, input the rebate receivables account. This transaction will debit accounts payable and credit rebates receivable.
See also
- Use the vendor ledger
- Enter miscellaneous cash receipts