How do I prepare my parts store’s supplier rebate records for a buyer?

Rebates are easy to lose in the books because they arrive late and in different forms. Gather every program letter or agreement, including those for volume targets, growth bonuses and promotions, and note the conditions each one carries. Keep copies of the correspondence with each supplier, not just the totals. If a rep has promised a change, a buyer will want to see it in writing. A neat folder for each supplier makes the whole picture easier to trust.

Then reconcile. For each supplier and period, show what was earned, what was paid and what remains outstanding. If a payment came as a credit instead of cash, say so. Buyers distrust rebate income they cannot trace to a statement.

Be honest about reliability. Some rebates depend on hitting targets that might change when ownership changes, or on a buying group that may not accept a new owner. Say which ones are likely to continue and which are uncertain. Raise the closing question early: who keeps rebates earned before the sale but paid after it? Put your accountant to work on how they should appear in the statements, and let your lawyer put the answer in the agreement.

Key takeaways

• Collect each supplier’s rebate terms and the statements behind every payment.
• Reconcile earned, paid and outstanding amounts by supplier and period.
• Decide in advance who keeps rebates earned before closing but paid after.