# Rebate accrual variance: pricing metric definition, thresholds and response

> Paid against accrued by program at period close, and the tiers that were hit late. When to act, what a move may signal, and the Revomo templates that respond.

Source: https://revomo.ai/marketplace/metrics/accrual-variance/

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Business need
- [Margin Leakage](https://revomo.ai/marketplace/collections/margin-leakage/)
- [Cost Recovery](https://revomo.ai/marketplace/collections/cost-recovery/)
- [Price Increase](https://revomo.ai/marketplace/collections/annual-price-increase/)
- [Quote & Deal Performance](https://revomo.ai/marketplace/collections/quote-deal-performance/)
- [Contract Renewal](https://revomo.ai/marketplace/collections/contract-renewal/)
- [Rebates & Incentives](https://revomo.ai/marketplace/collections/rebates-incentives/)
- [Market Response](https://revomo.ai/marketplace/collections/market-response/)

Industry
- [Industrial distribution](https://revomo.ai/marketplace/templates/?industry=distribution)
- [Machinery & industrial products](https://revomo.ai/marketplace/templates/?industry=machinery)
- [Building products](https://revomo.ai/marketplace/templates/?industry=building)
- [Chemicals & materials](https://revomo.ai/marketplace/templates/?industry=chemicals)

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- [Marketplace](https://revomo.ai/marketplace/)
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- [Contracts, Rebates & Incentives](https://revomo.ai/marketplace/metrics/?category=contracts)
- Metric

## Rebate accrual variance

Paid against accrued by program at period close, and the tiers that were hit late.
[See Rebate accrual variance in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=accrual-variance&name=Rebate+accrual+variance&collection=rebates-incentives)

### Why it matters

Paid above accrued at close is a surprise in the P&L and a sign that tiers were hit late or retroactively. Variance by program finds it before finance does.

### Act when

Paid above accrued by x% at close

Thresholds are set per business; the ones written as x and y are placeholders your team fills in.

### What it may signal

Tiers hit late, retroactive tiers.

### What to do

The templates that respond when this metric moves.
- [Rebate accrual model](https://revomo.ai/marketplace/templates/rebate-accrual/)*template*
- [Rebate program redesign](https://revomo.ai/marketplace/templates/rebate-redesign/)*template*

### How it’s defined

Formula
`sum('Rebates paid') - sum('Rebates accrued')`

Required context
Rebate programs, Accruals, Payments

Dimensions
Program, Account, Period

Cadence
Reviewed monthly

Lineage
Every value traces to the invoice line or governing record it was computed from.

Use in
**Alerts**: an agent watches it against a rule and alerts you when it trips. **Against plan**: tracked against the target, with the bridge that says what moved it.

### Relevant industries

[Industrial distribution](https://revomo.ai/marketplace/metrics/?industry=distribution)[Building products](https://revomo.ai/marketplace/metrics/?industry=building)[Chemicals & materials](https://revomo.ai/marketplace/metrics/?industry=chemicals)

Type
Metric

Category
[Contracts, Rebates & Incentives](https://revomo.ai/marketplace/metrics/?category=contracts)

Use in
Alerts · Against plan

Cadence
Monthly

Industries
Industrial distribution, Building products, Chemicals & materials

Business need
[Rebates & Incentives](https://revomo.ai/marketplace/collections/rebates-incentives/)

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=accrual-variance&name=Rebate+accrual+variance&collection=rebates-incentives) Defined, monitored and connected to action, on representative data or your own.

### Related metrics

- Margin Leakage & Cost Recovery #### [Rebates paid](https://revomo.ai/marketplace/metrics/rebates-paid/) Rebates paid as a share of revenue, against accrual, by program. **Act when**A consistent rise over a quarter, or paid above accrued Alerts · Against plan
- Contracts, Rebates & Incentives #### [Rebate program ROI](https://revomo.ai/marketplace/metrics/program-roi/) Incremental margin from growth against payout, by program and account. **Act when**Below 1.0 on any program at quarter close Against plan · After a decision
- Revenue & Margin Performance #### [Customer wallet share](https://revomo.ai/marketplace/metrics/wallet-share/) Your share of an account’s spend in the categories you sell, where it is known. **Act when**A shift of x points either way Alerts · Against plan

### See Rebate accrual variance on your commercial data.

We will show how Revomo defines, monitors and connects this metric to commercial action, using representative data or your own.
[See this on your commercial data →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=accrual-variance&name=Rebate+accrual+variance&collection=rebates-incentives)[All metrics](https://revomo.ai/marketplace/metrics/)