Rebate

A rebate is a payment back to a buyer of a portion of the full purchase price of a good or service. This payment is typically triggered by the cumulative amount of purchases made within a certain period of time. For example, a seller offers a 10% volume discount to a buyer if the buyer purchases at least 10,000 units within one year. The rebate is not paid until 10,000 units have been ordered by and shipped to the buyer. Another example of a rebate is when a buyer uses a coupon associated with a marketing promotion, requiring the buyer to mail the coupon and a sales receipt to a processing center, which later mails a rebate back to the buyer.

Related Courses

Payables Management