Rebate settlement is the process by which an earned rebate is calculated based on actual purchasing or sales data, agreed between counterparties, and paid or credited. Settlement typically occurs at period-end (quarterly or annually), against a claim window.
The settlement flow
The buyer or seller quantifies earned rebate against contract terms, files a claim to the counterparty, the counterparty reconciles against their records, disputes are resolved, and payment or credit is issued. Settlement cycles vary from weeks to months.
Where settlements slip
Missed claim windows, disputed calculations because the counterparties reconcile against different underlying data, delayed payments, and unresolved credit notes. Each is a source of contract value leakage; each is solvable with structured contract data and shared reconciliation.
