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Readysell has asked a number of accountants for advice on how to handle supplier rebates. We have received conflicting advice. Some advising us to handle rebates as other income, some advising us to handle rebates as a reduction in cost of goods sold. Readysell can't advise on accounting matters and particularly can't advise on this matter. The procedure below is one way of handling supplier rebates. Please seek advice from your accountant about the procedure you should use. Readysell takes no responsability for the approach below.

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Firstly you need to account for the Rebate and secondly the actual Refund of Money Received
If the supplier is set up as a card then follow the steps below:

1. Log onto readysell
2. Select Relationships
3. Select Supplier Transactions
4. Select Supplier Credit
5. Click on New
6. Enter the date that the deposit was made onto the bank statement onto the supplier credit
7. Select the Supplier Card
8. Enter into the description field something like 'Supplier Rebate Received'
9. On the line level select the General Ledger Account to stand for the Supplier Rebate Received
10. Either leave the default descrption of change it
11. Enter either the Value Inc or Value Ex and the tax code = INP or GST (seeing warning - based upon where in the chart your rebate received general ledger account resides)

1. Check the header value lines up to the value of the deposit.
2. Click on Finalise 
   
   

Now to account for either the Deposit received or cheque received onto the supplier account.

1. Log onto readysell

2. Select Relationships

3. Select Supplier Transactions

4. Select Supplier Payments

5. Click on New

6. Enter the date that the deposit was made onto the bank statement onto the supplier payment

7. Select the Supplier Card

8. Enter into the description field a reference off the 'supplier rebate received' and maybe the cheque no

9. Into the Payment Reference field, enter something off the Bank Statement or the cheque number

10. Enter the value in BACKWARDS with a MINUS Sign in front of it EG $-110 (as the supplier if depositing money into your account)

11. Click on Finalise and Allocate

12. Allocate the backwards supplier payment against the orgiinal supplier credit. Finalise and allocate button

    
    

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Entering a bank Payment backwards to stand for the supplier rebate received

1. Log onto readysell

2. Select Financials

3. Select Cashbook

4. Select Bank Payments or Bank Deposit ( based upon where in the chart your rebate received general ledger account resides)

5. Click on New

6. Enter the date that the deposit appears on the bank statement 

7. Select the correct tender
8. Select the bank account that the deposit is being made into 

9. Enter into the description field a reference off the 'supplier rebate received' and or if you have a maybe the cheque no

10. Into the Payment Reference field, enter something off the Bank Statement or if a cheque was received the cheque number

11. On the level level , select the General Ledger account for 'Supplier Rebate Received' and Enter the value in BACKWARDS with a MINUS Sign in front of it EG $-100 (as the supplier is depositing money into your account)

12. Click on Finalise.

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1. Log onto readysell
2. Select Relationships
3. Select Supplier Transactions
4. Select Supplier Credit
5. Click on New
6. Enter the date that that appears on the Credit Note
7. Select the Supplier Card
8. Enter into the description field something like 'Supplier Rebate Received and the Credit note Number'
9. On the line level select the General Ledger Account to stand for the Supplier Rebate Received
10. Either leave the default descrption of change it
11. Enter either the Value Inc or Value Ex and the tax code = INP or GST   (seeing warning -based upon where in the chart your rebate received general ledger account resides)
12. Check the header value lines up to the value of the deposit.
13. Click on Finalise

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