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Rebate contract intake checklist: what to capture from every supplier agreement

A printable checklist of the fields to pull from a supplier rebate agreement at signature, renewal or amendment, so the rebate can be calculated, claimed and defended later.

Version 1.1, last reviewed September 19, 2026

Printed with nothing answered, it is a blank form to work through on paper.

Run this checklist for every agreement at signature, renewal and amendment, before the first measurement period under the new terms closes. The contract manager fills it in, supply chain finance reviews it, and someone who knows the purchase data should be in the room, because many of these answers decide which transactions count. Write the page and section number beside every answer, and “agreement is silent” where it is. A yes with neither counts as partly. The aim is a record you and the supplier would both recognize as the deal you signed.

Before you start

Measure your baseline first

  • Baseline taken on three recently signed agreements before anything changes: how many of the answers below you can give today with a page reference, and whether someone outside contracting can recalculate the last closed period by hand.

Reading the agreement

Documents and parties

  • Supplier legal entity, parent company and contract number, copied from the signature page.
  • Agreement type: GPO, local, or distributor agreement. It usually decides who calculates and who pays.
  • Base agreement, every amendment and every exhibit in one file, each with its effective date and the order of precedence.
  • Amendments logged against the existing deal. Recording one as a second contract counts the same purchases twice.
  • Every company that invoices you for these products, and its role: contracting supplier or authorized distributor.

Dates and periods

  • Effective and expiry dates. If a renewal never updates the recorded end date, tracking stops with no error to warn you.
  • Agreement year: calendar year, supplier fiscal year, or twelve months from the effective date.
  • Measurement period (monthly, quarterly, annual) and whether periods follow the calendar or the anniversary.
  • Any short first or last period, and whether targets are prorated for it.
  • Grace days for late transactions, and days after period end that payment is due.
  • Auto-renewal terms and the last date to give notice.

Who is covered

  • Covered facilities, listed by name and by the identifier your purchase data uses (ship-to, entity or cost center).
  • Class of trade limits: acute, ambulatory, physician practice, retail pharmacy.
  • Measurement level: all facilities added together, or each facility against its own target.
  • The rule for facilities acquired or divested mid-term, including any notice needed to add one.

What counts as a purchase

  • Eligible products, by catalog number list or category definition, and the exhibit that holds them.
  • Exclusions, and the rule for new products and new-technology items.
  • Purchase channel: direct, through a distributor, or both. If distributor purchases count, note who supplies the sales tracing data.
  • Treatment of bill-only, consigned and no-charge items.
  • Definition of net purchases: whether credits, returns, freight, taxes and fees are in or out.
  • The date that places a purchase in a period: order, invoice, ship or receipt date.
  • Unit of measure for any unit-based term (each, box or case), with a conversion for every product.

The measure and the ladder

  • What each rebate program measures: dollars, units, growth over a baseline, or market share.
  • Every tier threshold and rate, copied exactly, including whether the top tier has a ceiling.
  • Tier application: the rate of the tier reached on all purchases (retrospective) or each rate on its own slice (stepped).
  • When the tier is decided: per period, per transaction or year to date, and whether a year-end true-up applies.
  • Guaranteed minimums, caps per period or per year, and targets that step up each year.
  • Growth terms: baseline period, baseline amount, and whether the rate pays on the growth or on the whole period.
  • Share terms: numerator, denominator, the products that define the market, and the data source both sides accept.

Five answers tend to move the payout most. The figures below are illustrative.

Field Why it matters Where it goes wrong
Tier application With 1% below $250,000 and 2% from there up, a $400,000 quarter pays $8,000 retrospective or $5,500 stepped The usual reading is assumed and the clause is never checked
Purchase record measured Only transactions in that record count Product ships through a distributor, so direct invoices show almost nothing
Unit basis Unit ladders compare counts, not dollars A box of 20 is counted as one unit and the threshold is never reached
Share denominator It defines the market total your purchases are divided by No competing products are listed, so share reads 100% every period
Period layout It decides which period each purchase lands in Quarters are counted from the effective date when the agreement says calendar quarters

Conditions of payment

  • Each commitment that gates a rebate (spend, volume, share or signed attestation) and the rebate it gates.
  • The commitment’s clock against the rebate’s clock. An annual commitment can gate a quarterly rebate.
  • Letters of commitment, tier-activation forms and compliance forms: due date, recipient, and the date the rebate is forfeited if the form is missing.
  • Alternative ways to qualify, such as “any two of three” or a unit target in place of a dollar target.
  • Anything else that voids the rebate: invoice payment terms, credit standing, supplier discretion language.

Payment, verification and disputes

  • Who calculates the rebate: supplier, distributor, GPO or you.
  • Payment form (check, electronic payment, credit memo, free goods) and due date.
  • Remittance detail the supplier must send: period, program, purchase base and rate.
  • Whether GPO or distributor administrative fees are separate from this rebate.
  • Supplier reporting duties, your audit rights, the dispute window, and the lookback limit on claims.
  • The agreed source of truth when the two calculations differ.

Downside terms

  • Price reversion or tier downgrade after a missed commitment.
  • Clawback, conversion payment or repayment of upfront money if volume moves to another supplier.
  • What happens to earned but unpaid rebates on early termination.

Setting it up

Finance and compliance setup

The anti-kickback statute’s discount safe harbor (42 CFR 1001.952(h)) defines a rebate as a discount whose terms are fixed and disclosed in writing to the buyer at the time of the initial purchase. To stay within it, a buyer that files cost reports must, among other conditions, earn the discount on purchases of the same good or service within a single fiscal year, claim it in that year or the next, and report it fully and accurately in the cost report. Medicare cost principles (42 CFR 413.98) treat discounts, allowances and refunds as reductions of the cost of what was bought, not as income. This is a summary, not legal, reimbursement or accounting advice: ask compliance, counsel and your reimbursement team how both rules apply to each agreement.

  • Accrual trigger agreed with finance, and the method for estimating tiers not yet reached.
  • GL account, and the rule for allocating the rebate to facilities and cost centers.
  • Cost report support file opened: agreement, calculation method, amounts and supplier statements.
  • Compliance review done: terms fixed and disclosed in writing by the first purchase, fiscal-year timing understood.

Ownership and calendar

  • A named owner and a backup.
  • One calendar holding period ends, form deadlines, payment due dates and the renewal notice date.
  • A distance-to-next-tier threshold that triggers a review while the period is still open.
  • The date of the next full review. Any amendment restarts this checklist.

What good looks like

  • Every answer carries a page reference, and a second person has read the summary back against the agreement.
  • Someone outside contracting can recalculate the first closed period by hand from this checklist and the purchase data, and gets the same figure.
  • No compliance form or attestation is filed late during the agreement year.
  • Every period has a payment due date on the calendar, and every payment is matched to its period within 30 days of receipt.
  • An amendment reaches the record within ten business days of signature, and figures for periods already settled change only where the amendment says so.

Start with the agreements that have a period end or renewal notice date in the next 90 days, and run this checklist on those first.

  • Where this is built in

    Rebate Recovery builds many of these checks into the everyday work instead of a yearly audit. Checks every supplier rebate contract against what you actually bought, then shows what suppliers owe you today, what this period is on pace to pay, and what is still within reach before it closes.

What changed in version 1.1

  • Grouped into phases, added a baseline step, stated that a yes needs a page reference, and made every item answerable on this page.

See what your contracts already owe you

Bring one supplier contract and a purchase extract. In a working session we load it, run the numbers and hand you the statement: earned, received, owed.