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Part 4 of 7 · Rebate claim tracker series ~6 min read

What a claim needs to survive scrutiny

A claim that is a number in an email gets queried. A claim that is a number with the lines behind it gets paid, and usually without anybody reading the lines.

Key takeaways

  • Submit the line detail even though nobody asked for it.
  • Expect a difference, and expect it to be about definitions.
  • Reconcile before submitting, not after being queried.
  • A credit note is cleaner than a deduction. Take the credit note.
  • Submitted is halfway. Chase to received.

What goes in the claim

The components of a defensible supplier rebate claimThree boxes across the top outside the AWS account. The rule version that applied, with dates. The qualifying lines, with invoice, date and value. And The arithmetic: tier, rate and amount. Each connects by an arrow to the AWS account container below, labelled under these terms, on this evidence, and for this amount. Inside the account are three components. One claim document in the supplier's format if they have one. Evidence attached, the lines as a file. And Submitted and dated, with a chase clock started. A note says the evidence is rarely opened and attaching it is what stops the query being raised at all.AWS ACCOUNTThe rule versionthat applied,with datesThe qualifying linesinvoice, date,valueThe arithmetictier, rate,amountOne claim documenttheir format,if they have oneEvidence attachedthe lines, as a fileSubmitted and datedwith a chase clockstartedunder these termson this evidencefor this amountThe evidence is rarely opened. Attaching it is what stops the query being raised at all.
Fig 1. The three things a claim is built from and what leaves the building. The middle box costs almost nothing to produce and removes most of the back-and-forth.
  • Storage
  • Management
  • Analytics
  • Front-end & mobile

Their format, if they have one

Larger suppliers have a portal or a template, and a claim submitted any other way joins a queue that is measured in months. It is worth the twenty minutes of finding out what the format is, once, and storing it against the agreement.

Smaller suppliers have no format at all, and for them a one-page statement with a spreadsheet attached is more than they normally receive. Both cases are handled by the same rule field: how this supplier wants to be claimed from.

Why the figures differ

Gross purchases against qualifying spend and the supplier's figureA bar chart with three bars showing qualifying spend in pounds. Your gross: one hundred and forty-eight thousand two hundred. After exclusions: one hundred and thirty-nine thousand four hundred. Their figure: one hundred and thirty-seven thousand nine hundred. A note says the remaining fifteen hundred pounds is two credit notes they applied in a different period, which is a five-minute conversation if you have the lines.050000100000150000200000~148200Your gross~139400After exclusions~137900Their figureQualifying spend, £The remaining £1,500 is two credit notes they applied in a different period. That is a five-minute conversation, if you have the lines.
Fig 2. Three views of the same year’s purchases. The first gap is your own exclusions; the second is timing, and it is small enough to settle by email.

A business that claims on gross spend arrives at that conversation ten thousand pounds apart from the supplier and looks either careless or opportunistic. A business that has already applied the exclusions arrives fifteen hundred apart, which reads as two competent parties with a timing difference.

Reconcile before you submit

If the supplier publishes a statement of your purchases, compare it to your own figure before the claim goes out rather than after it comes back. The differences are almost always the same handful: a credit posted in the wrong period, a delivery invoiced after period end, one range you thought qualified and does not.

Each of those is resolvable in one email when you raise it. Each of them is an argument when they raise it, because by then you have asserted a number you cannot support.

Credit note, not deduction

Two ways to get paid, and why one is much better

  • A credit note is issued by the supplier, references your claim, and settles cleanly against your account.
  • A deduction is you short-paying an invoice by the rebate amount and telling them why.
  • Deductions feel faster and are, for about six weeks, until their credit control system treats you as being in arrears.
  • Then it becomes two problems: an unresolved rebate and a payment dispute, and they are now handled by different people who do not talk.
  • Take the credit note, and chase it like an invoice. It is the same money with none of the second problem.

The exception is a supplier who has ignored three claims and two chases, where a deduction with a clear explanation is a legitimate escalation. That is a decision by a person, taken deliberately, and it should never be something the system does on its own.

The claim is not the end

The average gap between a submitted rebate claim and a received credit note is measured in months, and the most common reason for a claim never being paid is that nobody followed it up after the first submission.

Which is why the claim record carries a chase clock from the day it is submitted, exactly like an unpaid invoice, and why the reporting counts received rather than claimed.

Next: making sure the window never closes on you.

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