Unit Rebate Credits – DealerVu Help Center

Unit Rebate Credits

Unit Rebate Credits

We first need to make sure we have a Rebate on Units GL account – if not, add as follows:

Business Office > Accounting > Chart of Accounts > New Account Icon > Add a new income account in the Bike Sales department called Rebate on Units.

A) The Parts Account Credit Memo

Option 1 – Posting the rebate as a reduction to Unit Cost (As a Credit Note)

Accounting > AP Transactions > New Invoice Icon
Enter Vendor Name and Click OK.
Click on Insert Misc item icon
Enter credit note# (invoice number) and a brief description e.g. Rebate on Stock #123456
Enter the credit note amount excluding GST, check off refund flag and change the GL account # to the Rebate on Units account.
Confirm the tax code.
Enter the posting date, change the status to posted and save the invoice

Now we need to adjust the Unit Cost:

Unit Sales and Management > Unit Inventory >Enter the Stock # that the rebate applies to and click refresh.
Double click on the Unit from the listing.
Click on the Cost adjustment tab.
Click on the “Add Item” icon.
Type in a brief description e.g. Rebate on Stock # 123456.
Change the type to Base Cost and enter the rebate amount as a negative.
Invoke the GL and Use the same GL account # as in Step 5 above “Rebate on Units”
Click the Save icon to post the rebate adjustment.

Option 2 – Posting the Rebate as Income (As a Credit Note)

Business Office > Accounting > AP Transactions > New Invoice Icon
Enter Vendor Name and Click OK.
Click on Insert Misc item icon
Enter credit note# (invoice number) and a brief description e.g. Rebate on Stock #123456
Enter the credit note amount excluding GST, check off refund flag and change the GL account # to the Rebate on Units account.
Confirm the tax code.
Enter the posting date, change the status to posted and save the invoice

Resulting General Ledger Postings

Rebate on Units account has a debit and a credit for the same amount

Inventory account has a credit = the reduction to the unit cost.

B) Reduction to the Note Payable

Option 1 – Posting the rebate as a reduction to Unit Cost (As a note payable reduction)

Business Office > Accounting > AP Transactions > New Payment Icon
Click the Add item icon
Select Floor plan Vendor from the dropdown box and click on refresh
Find the unit that the rebate applies to, check the checkbox and click OK
Click the adjustment checkbox and select the “Rebate on Units Account” from the dropdown box
Enter a ref e.g. Rebate on Stock # 98765
Enter the amount of rebate under amount paid column and click on the post-payment icon

Now we need to adjust the Unit Cost:

Unit Sales and Management > Unit Inventory >Enter the Stock # that the rebate applies to and click refresh.
Double click on the Unit from the listing.
Click on the Cost adjustment tab.
Click on the “Add Item” icon.
Type in a brief description e.g. Rebate on Stock # 98765.
Change the type to Base Cost and enter the rebate amount as a negative.
Invoke the GL and Use the same GL account # as in Step 5 above “Rebate on Units”
Click the Save icon to post the rebate adjustment.

Option 2 – Posting the Rebate as Income (As a note payable reduction)

Business Office > Accounting > AP Transactions > New Payment Icon
Click the Add item icon
Select Floor plan Vendor from the dropdown box and click on refresh
Find the unit that the rebate applies to, check the checkbox and click OK
Click the adjustment checkbox and select the “Rebate on Units Account” from the dropdown box
Enter a ref e.g. Rebate on Stock # 98765
Enter the amount of rebate under amount paid column and click on the post-payment icon

C) Cheque Refund

Option 1 – Posting the rebate as a reduction to Unit Cost (As a cheque refund)

Business Office > Accounting> Banking > Transactions
Click on New Deposit icon
Pick the bank account from the dropdown list
Click on the add item icon
Enter the Rebate on Units account #, and click on refresh and then OK
Enter a memo and a brief description and the amount of the rebate.
Click on the Post-transaction icon.

Now we need to adjust the Unit Cost:

Unit Sales and Management > Unit Inventory > Enter the Stock # that the rebate applies to and click refresh.
Double click on the Unit from the listing.
Click on the Cost adjustment tab.
Click on the “Add Item” icon.
Type in a brief description e.g. Rebate on Stock # 98765.
Change the type to Base Cost and enter the rebate amount as a negative.
Invoke the GL and Use the same GL account # as in Step 5 above “Rebate on Units”
Click the Save icon to post the rebate adjustment.

Option 2 – Posting the Rebate as Income (As a cheque refund)

Business Office > Accounting > Banking > Transactions
Click on New Deposit icon
Pick the bank account from the dropdown list
Click on the add item icon
Enter the Rebate on Units account #, and click on refresh and then OK
Enter a memo and a brief description and the amount of the rebate.
Click on the Post-transaction icon.

Important Note: All three rebate options will affect the G/L (see page 5) and the Unit inventory (see page 3) in the same way

As a Credit note
As a note reduction
As a cheque refund

What can go wrong & what can you do about it?

The rebate can be posted to the incorrect account in accounts payable: When adding the rebate in the Units cost adjustment, we need to choose the same account as in the accounts payable. This can be checked periodically as the rebate account should always be zero (Assuming we use the rebate as a reduction in Cost). If this is not the case, we can post an adjustment to correct the posting.

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