Correct execution of the retro bonus agreement

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Retro bonuses are always provided to clients in accordance with regulatory documentation. The most important aspects concerning the implementation of this operation are specified in the contract or additional agreement on the retro bonus. First of all, the following information must be reflected in this document:

the provision of retro bonuses is mentioned directly in the title of the document together with the name of the transaction (“delivery of goods”);

the conditions for granting the discount are set out in the last paragraph concerning contractual actions, under the heading “Financial terms and payment procedures”;

The agreed price of the goods and the method of payment (cash or transfer) are indicated.

In order to reduce the likelihood italy email list of negative consequences in relations with tax authorities and partners, it is advisable to provide a complete list of categories or names of goods supplied with a retroactive discount, accurately indicate the units of measurement of the goods (volume, weight, quantity, etc.), and also determine the procedure for direct payment of remuneration.

Correct execution of the retro bonus agreement

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If the seller sets the retro bonus as a percentage of the volume of products sold, then a consignment agreement is drawn up to list the terms of its provision, characterizing the trade relations of both parties. The execution of such agreements and the calculation of retro bonuses is a rather complex task for the accounting department, since the agreement must necessarily indicate a number of details:

the cost of the goods delivered to the counterparty must be given taking into account the retro bonus. Without this, the contract is considered invalid;

it is necessary to note the conditions for paying the retro bonus (for example, if the buyer purchases goods for a certain amount, he receives a partial refund of the money paid in the form of retro bonuses);

deadlines for the accrual and payment of retro bonuses are established;

The agreement must be signed by both parties, which will allow it to be considered as a mutual confirmation of the terms and amount of bonus payments.

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