Rebates Bookkeeping Question

Rebates

Rebates

If our company sells a solar system and the customer invoice is $2500.00, Then there is a rebate for $500.00.

The customer pays for $2000.00 and we recieve (5 months later) a rebate from either the panel manufacturer, or the government, a rebate for $500.00, how is it recorded?

Recognized as Revenue? Carried as a receivable? Discounted against the cost of material?

Is the customer billed for $2500 or $2000?

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Rebates

by Cynthia
(Johannesburg)

How do I balance my books if the supplier is not giving cash back for rebates but take it as payment for what he is owed?

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