Deduction and Rebate Payment Verification Policy

The following sample outlines a set of policies and procedures for periodically verifying customer deduction and rebate payments in a retail environment. All trade deductions and rebates should be tested on a periodic, sample basis according to these procedures.

According to this policy, upon processing the first rebate check for a customer (both Tier 1 and Tier 2), 25% of the rebate invoice line items must be verified by the trade promotions and pricing manager (TPM), including: ensuring the invoice date is within the effective contract dates; comparing the contracted price to the invoice payment; and agreeing the stock-keeping units (SKUs) per the invoice to the contract.