Glossary
Supplier rebate glossary
The words of year-end rebates, defined simply, with the French term for each one. Each entry links to the guide, an article or the calculator to go further.
“
- “Other” lineIn French: Ligne « autre »
- The part of turnover that belongs to no family. In the last period, the families plus “other” must add up to the declared total. More on “Other” line
A
- AllowanceIn French: Rabais
- An exceptional reduction granted to compensate for a quality defect, a non-conformity or a late delivery (French: rabais). It does not depend on volume. More on allowance
- Annual agreementwritten agreementIn French: Accord annuel
- The document setting the year’s terms between supplier and distributor, including rebate scales. In France it takes the form of a written agreement under the Commercial Code (article L441-3). More on annual agreement
- Annual negotiationsIn French: Négociations annuelles
- The period in which suppliers and distributors negotiate the year’s agreement. In France, the agreement must be signed by 1 March for most relationships. More on annual negotiations
B
- Back marginIn French: Marge arrière
- The part of a distributor’s margin that comes from rebates, including year-end rebates, and other payments made by suppliers after the purchase. More on back margin
- Buying groupcentral purchasing organisationIn French: Centrale d’achat
- An organisation that negotiates purchasing terms on behalf of several stores or companies (French: centrale d’achat), and tracks the rebates of many suppliers. More on buying group
C
- Computed rateIn French: Taux pré-calculé
- The rate obtained mechanically by applying the scale to the validated base (French: taux pré-calculé). It is the starting point of the year-end negotiation. More on computed rate
- Counter-proposalIn French: Contre-proposition
- A rate or scale proposed by the supplier in response to the purchaser’s proposal. The purchaser accepts it, proposes again or holds to obtain information. More on counter-proposal
- Credit noteIn French: Avoir
- A document by which a supplier acknowledges owing an amount to its customer (French: avoir). It is the most common way to settle a year-end rebate. More on credit note
- Cumulative turnoveryear-to-date turnoverIn French: Chiffre d’affaires cumulé
- Turnover from 1 January to the end of a period. Declaring cumulative figures absorbs corrections and makes the last period’s figure the annual base. More on cumulative turnover
D
- Declaration periodIn French: Période de déclaration
- A division of the year, into one to twelve contiguous periods, after each of which the supplier declares its cumulative turnover. Quarterly periods are the most common. More on declaration period
- DiscountIn French: Remise
- A price reduction granted immediately at the time of sale, for example for the quantity ordered or the customer’s status (French: remise). It appears on the invoice. More on discount
- Distance to the next tierIn French: Distance au palier suivant
- The turnover missing to reach the next tier up. It is the key figure for in-year management and for preparing next year’s scale. More on distance to the next tier
E
- Early payment discountsettlement discountIn French: Escompte
- A financial reduction for paying before the agreed due date (French: escompte). It belongs to payment terms and is unrelated to purchase volume. More on early payment discount
- Effective rateIn French: Taux effectif
- The rebate amount divided by turnover. With a marginal rate it is lower than the rate of the tier reached; across an account, it measures the average yield of rebates. More on effective rate
- Entry and validation windowsIn French: Fenêtres de saisie et de validation
- The dates between which the supplier can declare a period, then the purchaser can check it. They set the pace of the cycle and trigger reminders. More on entry and validation windows
G
- Growth rebategrowth bonusIn French: Bonus de croissance
- An additional scale rewarding growth in turnover against the previous year (French: bonus de croissance). The tier is read on the change, in euros or as a percentage. More on growth rebate
L
- Landingfull-year forecastIn French: Atterrissage
- An in-year estimate of full-year turnover with a supplier (French: atterrissage). It is not validated but feeds projections and accruals. More on landing
- ListingIn French: Référencement
- The inclusion of a supplier’s products in a distributor’s or buying group’s range (French: référencement). A wider listing is often rewarded by the scale. More on listing
M
- Marginal rateincremental rateIn French: Taux marginal
- A rate mode where each slice of turnover earns the rate of its own tier, like tax brackets (French: taux marginal). The rebate grows without jumps. More on marginal rate
- Marketing servicesIn French: Coopération commerciale
- Payment for services the distributor provides to the supplier, such as in-store promotion or a catalogue listing (French: coopération commerciale). It is invoiced by the distributor and is not a rebate. More on marketing services
N
- Next year’s scaleIn French: Barème N+1
- The scale proposed for the following year, simulated on the year’s validated turnover. Once accepted, it becomes the new annual agreement. More on next year’s scale
P
- Product familyIn French: Famille de produits
- A group of products rewarded by its own scale, on top of the base scale. The supplier splits its turnover between the families and an “other” line. More on product family
R
- Reasoned refusalIn French: Refus motivé
- The refusal of a declaration with a written reason. The supplier corrects and resubmits; the reason stays visible until the new submission. More on reasoned refusal
- Rebateristourne, volume rebateIn French: Ristourne
- A price reduction calculated afterwards on the volume of business over a period (French: ristourne). Year-end rebates are annual volume rebates. More on rebate
- Rebate accrualrebate receivableIn French: Provision de BFA
- The in-year accounting estimate of the rebate to receive or pay. It is obtained by applying the effective rate expected on the landing to turnover validated to date. More on rebate accrual
- Rebate baseIn French: Assiette
- The turnover the rate applies to, as defined in the agreement (French: assiette): usually annual turnover excluding VAT, net of credit notes, declared and validated. For a family scale, the family’s turnover. More on rebate base
- Rebate scaletiered scaleIn French: Barème
- A series of contiguous tiers, each defined by a lower bound, an upper bound and a rate (French: barème). An agreement has a base scale and possibly family scales and a growth scale. More on rebate scale
- Retained rateIn French: Taux retenu
- The rate finally accepted by the purchaser and the supplier at the end of the negotiation (French: taux retenu). It replaces the computed rate and sets the final rebate amount. More on retained rate
- RevisionIn French: Révision
- A numbered reopening of a result already finalised or accepted, with a reason, to correct a figure or renegotiate. It starts from the last negotiated rate. More on revision
- RFA (remise de fin d’année)French year-end rebateIn French: Remise de fin d’année
- French term for a year-end rebate, also called ristourne de fin d’année. Same mechanism as a BFA: a percentage of annual turnover set by tiers. More on RFA (remise de fin d’année)
S
- Scale simulationIn French: Simulation de barème
- Calculating the rebate an existing or draft scale would give for a given turnover. It compares whole and marginal rates and prepares next year’s scale. More on scale simulation
T
- Threshold effectIn French: Effet de seuil
- With a whole rate, the jump in the rebate when turnover crosses a bound: all volume moves to the higher rate, so a few euros of turnover can change the amount sharply. More on threshold effect
- TierIn French: Palier
- A band of a scale, between an included lower bound and an excluded upper bound, with its own rate (French: palier). The last tier has no upper bound. More on tier
- Tier boundIn French: Borne de palier
- The lower or upper limit of a tier. With half-open bounds, reaching the lower bound exactly is enough to reach the tier, and each tier’s upper bound is the next tier’s lower bound. More on tier bound
- Turnover declarationIn French: Déclaration de chiffre d’affaires
- The cumulative turnover a supplier declares for a period, split by family where the agreement requires it. It moves through draft, submitted, validated or refused states. More on turnover declaration
V
- ValidationIn French: Validation
- The act by which the purchaser accepts a declaration as the basis of the calculation, after checking it. A validated declaration is frozen; reopening it is exceptional and needs a reason. More on validation
W
- Whole rateretroactive rateIn French: Taux global
- A rate mode where the rate of the tier reached applies to all turnover (French: taux global). It gives a higher amount than a marginal rate and creates threshold effects. More on whole rate
Y
- Year-end rebateBFA, annual volume rebateIn French: Bonus de fin d’année
- A rebate a supplier pays its distributor customer at the end of the year, calculated on the turnover achieved together according to a tiered scale set in the annual agreement. It is conditional, deferred and usually settled by credit note. Known in French as BFA. More on year-end rebate
- Year-end recapIn French: Récapitulatif de fin d’année
- A document summarising, once the year is finalised, the base, tier reached, computed rate, retained rate and amount of each of a supplier’s scales. More on year-end recap
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