Vendor Rebates

Finance has been getting questions from departments about vendor rebates so we thought it would help to review what a vendor rebate is and how you should handle the rebate if your department receives one because of a business purchase.

What is a vendor rebate?

A vendor rebate is an incentive program in which vendors offer customers a monetary reward for reaching designated purchasing goals.

Vendor rebates can come in many forms. For example, a vendor may offer a volume rebate to businesses that purchase a certain number of goods in a set period. Or they may offer a target percentage rebate in the case the business reaches a target percentage increase in the number of goods sold.

How are vendor rebates made?

Vendor rebates tend to come in one of two forms:

• Check
  • Vendor rebates that are received by check for university purchases must always be made out to Ohio University. Under no circumstances should a rebate check be provided in the name of a university employee. When a rebate check is received for a university purchase, the department should immediately complete a deposit form and deposit the check to the Bursar Office using the account(s) that was charged for the original purchase.    
• Prepaid credit or debit card 
  • If a vendor rebate is received in the form of a prepaid debit or credit card, that card must immediately be given to the employee’s supervisor. The supervisor must ensure that the rebate amount is used for future purchases for the department as quickly as possible to ensure that the rebate amount is not lost to the University. 
    • If you have questions, please consult with the planning unit CFAO. 

Questions? Please contact financecustomercare@ohio.edu