Many manufactures will offer rebates as a way to lower your equipment purchase cost. See this post on best practice for equipment item costs.

This suggested Best Practice is intended to help you track expected manufacturer rebates. There are entries on both Accounts Receivable and Accounts Payable. 

Why do on both AR and AP side? The idea is that you haven't received the credit from mfg yet, so you don't want to record receipt of credit yet. Debit memo is a place holder of expected monies, but AR credit and AP credit happen at time actual rebate given by mfg which is the time to recognize the rebate. AR is money your expecting, but you don't have yet. AP is money you have received or owe - you don't want to understate AP monies owed. Also makes it easy to show Sales Dept we did account for rebate. Keeps sales from chasing admin on whether rebate filed for.

Some dealers want a line item on the Sales Order 

Instructions here are based on practice of sales rep commission COGS already accounts for rebate, so no need to list expected rebate amount on Sales Order. If you need rebate to come off of the cost of the sale, then enter line item on Sales Order for expected rebate amount with expense line item. But still go thru same process of AR credit/debit memo and AP credit entry to track if rebate actually received.

Step 1. Enter Debit Memo against manufacturer (i.e. Canon):

One CEO Juice client goes through spreadsheet from manufacturer providing info on expected rebates and enters debit memo for that deal for expected rebate amount. Debit memo stays open until credit from mfg received. Advantage to listing as AR under mfg, is you can track expected rebates not yet received.

1. Customer is manufacturer NOT actual customer receiving equipment

2. Description field contains Sales Order Invoice # and Customer Name

3. Use Revenue Clearing Account (will use this same clearing account later on AP side)

Step 2: Go back to Sales Order and reference AR Debit Memo # in Custom Property created just for these rebates:

**We also suggest created Order Types indicating expected rebate for this deal - different Order Type for each manufacturer. This will enable you to create an eView to track these (see below for how to create this eView)

Steps 3 and 4: Once rebate received from manufacturer:

3. Enter Accounts Payable Misc Charge Invoice (negative amount) for rebate amount:

**Use same GL on AP Misc Charge Invoice as GL used on AR Debit Memo

And list Sales Order Number on Misc Charge Invoice to tie back to Accounts Receivable Sales Order:

(This doesn't effect anything, but provides link for historical reference.)

4. Enter AR Credit Memo to wash out Debit Memo created in Step 1:

Here is how to build your eView to track these rebates:

**THIS SECTION COMING SOON!**