How to check contract or rebate pricing is applied on invoices

Short answer

1. Put the contract prices in a list, ex GST.
2. Compare each invoice line to the list.
3. For rebates, total your spend per supplier over the period.
4. Ask for a credit note when you pass the rebate threshold.

Before you start

Read the contract and note three things.

• Which items have a fixed price.
• Whether prices are fixed for the whole term or change on set dates.
• Any rebate, with its threshold, rate and period.

Contract pricing and rebates are different problems. A contract price applies on each bill. A rebate is owed after the period ends, usually as a credit note, so no invoice shows it.

The manual way in Xero

1. Keep the contract prices in a spreadsheet.
2. For each bill open it from Business > Bills to pay and compare each unit price.
3. For rebates, export bills for the supplier and total them by period. Use Business > Bills to pay with a date filter and the export option.
4. Compare the total to the rebate threshold in the contract.
5. If you passed it, ask the supplier for a credit note and apply it to a bill.

Xero cannot hold contract prices per supplier or track a rebate threshold.

The manual way in MYOB

Run a purchases report for the supplier for the rebate period and compare the total to the contract. Check each bill’s unit prices against your contract sheet.

The Pulsify way

This part covers contract prices only. Pulsify does not track rebates.

1. Click Database in the sidebar and open the Price Lists tab.
2. Click Upload price list and choose the supplier.
3. Upload the contract prices as a CSV with Item code, Description and Unit price ex GST.
4. Open bills from that supplier. A line billed above or below the contract price shows “Price list: $X each”.
5. Query the supplier or fix the line, then approve.

A price list holds one price per item. If the contract has price changes on a set date, replace the list on that date.

Worked example

Example Steel Supplies has a 12-month contract. Mesh sheets are $64.00 each ex GST. A rebate of 3% is owed if you spend over $50,000 in the year.

You upload the mesh price. A bill arrives with mesh sheets at $66.50. The line shows “Price list: $64.00 each”. You query it.

For the rebate you total the year’s bills in a spreadsheet. They come to $58,400 ex GST. The rebate is 3% of $58,400, which is $1,752.00. You ask for a credit note for that amount.

Common mistakes

• Trusting the supplier to apply a rebate on its own. Track the spend yourself.
• Forgetting the rebate is on spend ex GST, if that is what the contract says. Read the terms.
• Uploading list prices as contract prices. Use the contract prices.

Next step

Book a call to find out how customers have saved hours per week after switching. Or try an invoice to see price checks on your own contract. See the price lists guide.