Your gear suppliers pay a rebate.Somebody has to check it.
Wire, gear, lighting and controls, bought across a whole year. We check what the statement paid against every invoice in it.
- Wire and cable
- Switchgear and distribution
- Lighting and controls
- Conduit, fittings and strut
The first pass is free while we onboard the first ten distributors.
Six levels, one calendar year, and a cliff at the first one
Read out of a lighting supply agreement filed with the SEC.
PERCENTAGE REBATE APPLIED TO ALL PRODUCTS PURCHASED IN CALENDAR YEAR
| Bought in the calendar year | Rebate rate | Paid at the bottom of the band | |
|---|---|---|---|
| Up to $5,999,000 | 0% | $0 | |
$1,000 more of buying, and the year pays $600,000 instead of nothing. | |||
| $6,000,000 to $6,999,999 | 10% | $600,000 | |
| $7,000,000 to $7,999,999 | 11% | $770,000 | |
| $8,000,000 to $8,999,999 | 12% | $960,000 | |
| $9,000,000 to $9,999,999 | 13% | $1,170,000 | |
| $10,000,000 or more | 14% | $1,400,000 | |
“This is primarily due to the year-over-year difference from many of our distributors push from a year ago to achieve calendar year-end rebates.”
A conduit and cable manufacturer is telling its shareholders that what electrical distributors bought to reach a rebate level moved its volume. The buying is real enough to show up in somebody else’s quarter.
A note on the evidence. HVAC, plumbing and electrical distributors do not file their supplier agreements with the SEC, because those agreements are not material under Item 601. Ace Hardware and Ruud Lighting are the direct evidence. The rest are agreements of the same shape from other industries. It is the best public evidence there is, and it is not direct evidence of your trade. For electrical the closest document in that set is the lighting supply agreement drawn here. The other voice on this page is an earnings call rather than a filing, and the card says who is speaking.
Three files, and the whole year comes out of them
We read the levels, then count your year
Rates, levels, dates, the brands that count and the exclusions come out of the agreement first. Then the year is counted against them.
How the reconciliation works
- 01
Send three files
The statement, the agreement behind it, and your purchase export for the whole year.
- 02
We count the year
Every invoice dated inside the measurement year, against the statement line that paid on it.
- 03
You see the level you reached
What your buying actually came to, what they paid you at, and the money between.
Also for electrical distributors: Statement reconciliation · Claim deadlines · Rebate accrual
Your suppliers can see the year end coming
A conduit and cable maker explained a soft quarter by what distributors bought the year before.
raceway volume growth in one quarter at that maker, from distributors buying to reach year end rebates
Atkore International, Q1 fiscal 2019 earnings call transcript, 6 February 2019Counted on the agreement year
Every invoice dated inside the period the agreement names, and nothing outside it.
Earned to date, not guessed
Where you stand on each agreement today, with the invoices under the figure.
The period nothing arrived for
A quarter that produced no statement is counted as a period rather than skipped.
Questions people ask first
No. Each agreement is set up on its own measurement period, so a lighting programme running February to January is counted February to January while a gear programme on the calendar year is counted January to December.
Three files. The agreement that governs the rebate, one statement paid under it, and the purchase export covering the same period. The statement can be a PDF, a spreadsheet or a scan. The export needs date, supplier, invoice number, part number, quantity and amount, under whatever column names your system already uses.
No. Export your purchases the way you already do and send the file. Prophet 21, Eclipse, Infor and NetSuite all produce something we can read, and your IT guy never has to get involved.
Three plans between $299 and $1,199 a month, on the pricing page, with the agreement and purchase limits published for each one. Month to month, and you cancel it yourself.
Then you have a checked answer that your rebates are being paid correctly, which is what we expect on most agreements. The first pass is free for the first ten distributors, so finding nothing costs you a file transfer.
Your files are encrypted on US servers and only the people you invite can see them. We are not SOC 2 certified and we will not put a badge on this page pretending we are. If your controller wants a security review first, say so and we will work through it.
Send one statement from your biggest electrical supplier.
We check it against every invoice in the year it covers and send back the difference.
Free while we onboard the first ten distributors.