Vendor rebates impact margin on a positive way. Understanding thius impact is very import to any organistion who are funded by Vendors via rebates. In a large number of industries, rebates are a part of the standard method of doing business therefore must be accepted. The way in which margin is defined is different for individual business and some business even have a number of different definitions of margins they report on therefore being able to calculate the margin in a reporting environment provides more flexibility. In the rebate functionality today, there is no method of seeing the impact of Vendor reabtes or vendor funding has on overall margin. Vendor rebates track the calculated rebate onto the related transactions i.e. purchase order or sales order but the impact this has on overall margin is not shown or calculated anywere.
Comments
To go even further, in some countries inventory valuation must also include deferred rebates.