Accruals and Payouts

Accruals

To accurately plan for the upcoming financial period, your finance team must estimate monetary dues against a rebate program. Calculate accruals upfront at the start of a period to verify the potential payment that is due at the end of a month or quarter.

Calculate accruals by using:

• Actual transaction data to get a projected accrual rate.
• Account forecast data to set up benefit thresholds.

If partners aren't attaining a benefit threshold during a year to be eligible for payouts for certain periods, you can still accrue based on a predefined benefit tier value. You can accordingly save the funds for payouts based on your accrual calculations. By doing so, you’ll be better prepared with your finances if partners reach the higher threshold next year and you have to pay them.

Payouts

Your account managers must know the exact amount that partners are supposed to receive as rebates for each payout period. When a partner is enrolled as a member in a rebate program, the program manager defines the eligibility criteria and benefit tiers for the applicable rebate types.

The payout period is decided based on the rebate program’s duration and frequency of payouts. Rebate Management computes the payouts within that period depending on how frequently the flows run and how regularly values get updated with each run. After the latest payout data is available, account managers can have effective conversations with partners on how to increase their threshold and scale their benefits. On the payout calculation date of a period, the payout amount at that point is the reward that the member receives.