Rebates and Bonuses are two different ways for a franchise manufacturer to reward a dealer for good performance.
Rebates.
These are forms of discount that are claimed back when you hit an agreed purchase target on a specific product line or product group.
Example:
You could have a target to purchase 100 widgets at R10 each with a Rebate of R2. When you hit that target you will be able to claim the agreed Rebate of R2 on all 100 widgets that you have purchased resulting in a Rebate of R200 (qoo widgets with a R2 Rebate on each). Rebates are usually retrospective upon target attainment.
Bonuses.
These are bonus payments in the true sense of the word. Your franchise manufacturer usually provides you with an annual parts purchase target, which is broken down into quarterly segments. When you reach these targets the franschise manufacturers pays you a bonus for hitting this target.
Discussion:
What you need to know is this: When does the value of the Rebates and Bonus payment appear within your reports? Do they appear when you hit the target, or do they appear when you receive the payment?
This makes a considerable difference to the interpretation of your departmental profitability when you are comparing your results with everyone else.