The rare finance problem that is literally found money.
The person searching for this runs finance or purchasing at a distributor, dealer, or buying organization — and suspects, correctly, that suppliers owe more than they’re paying. Most companies book supplier rebates when the check arrives, which means the supplier’s calculation decides the number. Aurgus runs the calculation the other way: model each supplier agreement, compute your entitlement deterministically from your own purchase data, and reconcile what was paid against what was earned — with lineage on every dollar. Aurgus is in design-partner stage, which we state plainly.
Where earned rebates go unclaimed.
Vendor rebates are the mirror of customer rebates — same math, opposite direction, and usually far weaker controls. The Off-Invoice Control Index scores both directions in about three minutes.
- Entitlement is never computed independently. Booking rebates on receipt means programs the buying team forgot, tiers crossed in December, and amended rates nobody re-modeled simply never get claimed. The supplier is not going to volunteer the difference.
- The terms live in purchasing; the money lives in finance. The people who negotiated the program aren’t the people watching the receivable — and the agreements themselves live in a folder nobody re-reads.
- Acquisitions break the roll-up. Purchases by an acquired entity should count toward your tiers from the effective date. If the supplier’s systems don’t know that, and yours don’t check, that volume earns nothing.
- Supplier statements are reconciled against memory. When the quarterly statement arrives, the only test most teams can run is “does this feel right” — because there is no independently computed number to compare it against.
- Under ASC 705-20, the accounting depends on the number being right. Vendor rebates reduce the cost of inventory purchased — an understated entitlement quietly overstates COGS and understates margin, period after period.
Compute what you’re owed — then collect it with evidence.
Vendor rebates run on the same governed calculation engine as our rebate management software — the direction is reversed; the discipline is identical.
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Supplier agreements as governed, date-effective records.
Rates, tiers, qualifying products, windows, and amendment history — modeled once, versioned forever. The entitlement is computed against the terms in force on each purchase date.
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Entitlement computed from your own purchase data.
Purchase transactions arrive as workbook or CSV; the engine computes earned rebates deterministically — same data, same agreement, same answer every run — with lineage from every computed dollar to the purchase rows and the clause.
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Payments reconciled against entitlement.
Supplier statements and payments are compared to what you computed. The difference is a true-up to decompose — this much timing, this much rate disagreement, this much genuinely unclaimed — not a number to shrug at.
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A claim your supplier can’t wave away.
“You owe us $184K” lands differently when it arrives with the agreement clause, the purchase lines, and the arithmetic attached. Evidence is what turns a suspicion into a collection.
You book supplier rebates when the supplier pays.
That is the definition of leaving money on the table — the counterparty computes your asset. Independent entitlement calculation is exactly what Aurgus ships.
You run rebates in both directions.
Customer rebates owed and vendor rebates earned on one calculation substrate, one event log, one reconciliation discipline — instead of a tool for one side and spreadsheets for the other.
You need supplier-portal or EDI statement feeds.
Purchase and statement data arrives as workbook or CSV today. If your supplier flows can’t export to a flat file, we are not your tool yet.
You want automated collections or dispute workflow.
Aurgus computes and evidences the claim; your team collects it. The claim-and-response workflow between you and your suppliers is deliberately not built. Aurgus is in design-partner stage, which we state plainly.
Vendor rebates, honestly answered.
- What is vendor rebate management?The buyer-side discipline of tracking what suppliers owe you: model each agreement’s terms, compute earned rebates from your own purchase data, carry the entitlement as a receivable, and reconcile supplier payments against your computed number. The mirror image of customer rebate management — same calculation problem, opposite direction, your margin as the beneficiary.
- Why do distributors leave vendor rebates unclaimed?Because most book supplier rebates only when the supplier pays — the supplier’s calculation, on the supplier’s data, decides the number. Forgotten programs, tiers crossed late, acquired-entity purchases that should roll up, and amended terms nobody re-modeled all go unclaimed. See vendor rebate receivable for the accounting side.
- How does vendor rebate software work?Model each supplier agreement as a governed record; compute entitlement deterministically from purchase transactions; reconcile statements and payments against the computed number, decomposing every difference. In Aurgus this runs on the same engine as customer rebates — data as workbook or CSV, lineage on every dollar, an append-only event log underneath.
- Vendor rebates vs customer rebates — the difference?Direction. Customer rebates are a liability (reduction of revenue, ASC 606). Vendor rebates are an asset — under ASC 705-20 they reduce the cost of inventory purchased, flowing through COGS. Most distributors run both at once; the control failures are symmetrical.
- Can Aurgus manage vendor rebates today?Yes — on the same governed engine as customer rebates, with honest boundaries: workbook/CSV data only (no supplier portals or EDI today), and no automated collections workflow — we compute and evidence the claim; you collect it. To size your unclaimed exposure, talk to one of our experts.
The adjacent mechanisms you’re probably also running.
Bring one supplier agreement and a quarter of purchases.
Thirty minutes. No pitch. We’ll compute your entitlement against the agreement’s actual terms and compare it to what was paid — and tell you honestly whether the gap is worth chasing.