Definition
Money a supplier pays back after the purchase, usually for reaching a volume or spend threshold in a period, as agreed in the contract.
Also called: volume rebate, vendor rebate, retro rebate
Key points
- Rebates are often claimed by the buyer rather than paid automatically, so unclaimed rebates are common.
- Tracking spend by supplier against each tier shows what has been earned.
- The rebate agreement's claim deadline matters; check it before the period ends.
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