Procedure S46 / Issue 2 .0
Procedure: Rebates Processing and Validation
Written By:
Corey Bryant, Murray Thomas
National Business Managers
Hospital
Community
Document No: S46
Approved By:
Andrew Oldale
Finance Director
Issue Date:
29/4/2010
Supersedes:
Issue No.
Issue 2.0
Issued by:
Document
Controller
Wendy Holden
Issue 1
Reason For Issue:
Update to refer to new pricing procedures
Doc. Index Updated
Y
Distribution: State Sales Managers
National Business Manager - Hospital
National Business Manager – Community
National Sales Manager
Manager, Special Projects (Finance)
Strategic Information Manager
Customer Service Supervisor
Business Banker
Finance Director -
Finance Manager
Contracts Manager
Asia Pacific AWM
Commercial Accountant s
Sales Support Co-ordinator
Document Controller (Master)
PURPOSE
The aim of this procedure is to clarify the process involved for Rebates from implementation through to maintenance and termination.
SCOPE
All rebates negotiated within the Hospital and Community Channels of the
Healthcare Division.
INTRODUCTION
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Procedure S46 / Issue 2 .0
A rebate is implemented when the end user purchases S&N products through a
Prime Vendor/ Wholesaler at a price agreed with S&N which is lower than the
Prime Vendor/Wholesaler buy price.
DETAIL
IMPLEMENTING A REBATE
When the business need arises to implement a rebate, the process can be initiated by the Sales Executive (SE), the State Sales Manager (SSM) or the
National Business Manager (NBM).
The initiator should obtain and complete the following documents from
L:\Controlled Documents\ Procedures\Forms:-

Rebate Contract Template (SF38)

Rebate Pricing Schedule Template (SF39)
Approval for rebate implementation must be gained from the NBM (where he/she is not the initiator) using form SF39 Rebate Pricing Submission Form.
Approval for pricing should be in accordance with procedure N16 Management of Special Pricing .
The initiator may then confirm the Rebate Contract and Rebate Pricing with the customer, with copies being sent to the end customer(s) if applicable and the
Prime Vendor (as appropriate). Copies are also sent to the Sales Executive, appropriate State Business Manager(SBM) and NBM. Copies of all Rebate
Agreements should be retained on file by the Manager, Special Projects
(Finance). All Contracts/Agreements must be reviewed by the Finance
Department. (Refer Procedure F02)
The NBM must ensure that customer/product pricing is set up in BPCS under the appropriate rebate CDC by the Sales Support Co ordinator (SSC) in accordance with Procedure N16.
Refer to flowchart below.
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Procedure S46 / Issue 2 .0
SE/SSM/NBM initiates
Rebate Contract with customer
Reviewed and approved according to Procedure F02
Review by Manager, Special Projects (Finance)
Final review & execution by Finance Director or
General Manager
SSM/NBM obtains SF38 Rebates Contract Template,
SF39 Rebate Pricing Submission Form L:\Controlled
Docs\Procedures\Forms
N
Review identifies changes?
Copy of Rebate contract and pricing schedule sent to customer (end customer and PV) and copy to Manager, Special
Projects (Finance). Copy of Contract is registered in Rebate Contract Agreement
Register & filed. A copy is sent to the
Commercial
Accountant.
NBMs must own and maintain the individual customer rebate products lists (and pricing for
Hospital Channel). This will follow Management of
Special Pricing Procedure N16
Customer product/pricing is set up in BPCS under rebate CDC by SSC
Y
Approvals gained from:-
NBM for rebate implementation and
Product Manager for pricing
Details then confirmed with customer
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Procedure S46 / Issue 2 .0
MANAGING A REBATE
The customer will email their rebate claim to aus.rebates@smith-nephew.com by the end of the first week of the month (as requested in the Rebate Contract
Letter). This should be in an Excel electronic format.
The Business Banker (BB) scripts the claim. The SSC validates the claim and BB generates a report for sign off. Refer to S46-01 for detail.
ADDITIONS/DELETIONS TO REBATE
Once a rebate agreement is in place, products or end customers may be added to or deleted from this agreement, due to changes in contracts, tenders or pricing structure. This may be done by completion of Rebate Pricing Schedule Template
(SF39), gaining the necessary approvals and forwarding to SSC to ensure that
BPCS is updated. It is the responsibility of the NBM (for National rebates) and the SSM (for State rebates) to ensure that the customer is kept up to date at all times.
Once BPCS rebate reports are generated and the variance report created, this report should be reviewed and signed off by NBM, Finance Director(FD) &
National Sales Manager(NSM) on a monthly basis.
TERMINATION OF A REBATE
A rebate runs for a set period of time until termination. The Manager, Special
Projects (Finance) will notify via email the SE/SSM/NBM at the end of each quarter for rebate contracts that are due to expire within six months of the quarter end. Renegotiations will take place in the months prior to the termination date, subject to pricing review and for the agreement to continue.
The NBM (for National contracts) or the SSM (for State contracts) is responsible for ensuring any termination/re-negotiation is communicated in writing to the customer with a copy to the SSC and the Manager, Special Projects (Finance).
A rebate may be terminated prior to the termination date by agreement from both parties, eg S&N and the customer. Again this must be communicated in writing to the customer, with a copy to SSC and the Finance Department.
CONTRACTUAL REBATES
A Prime Vendor may be nominated by the State Government body, eg
Queensland Health Department, for a defined list of end users. These end users are able to purchase the products on contract at contract prices from the Prime
Vendor. Alternatively, a distributor may be nominated by S&N for a defined list of end users. These end users are able to purchase from the distributor the products on contract at contract price. A rebate for this difference is submitted to the SBM/SSM and approved by NBM.
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Procedure S46 / Issue 2 .0
If there are any changes to the contract, eg contract wins/losses, price changes, product code changes etc, the National Contracts Manager notifies the Prime
Vendor/Nominated Distributor.
In addition, in NSW & QLD, as part of the contractual agreement, S&N pay a
Management Fee/Rebate, of usually 1%, to the State Government body for all sales under this arrangement, including those sold through Prime
Vendor/Distributor. Usage data is sent to the Contracts Manager for requested periods and the Management Fee/Rebate is paid on a regular basis as per contractual agreement eg every month/every 6 months. Refer to work instructions S01-05, S01-06 and S01-07 for full details.
DOCUMENTS
Form SF38 Rebate Contract Template
Form SF39 Rebate Pricing Schedule Template/Usage Sheet
Procedure N16 Management of Special Pricing
Procedure F02 Contract Management
Work Instructions S01-05 QLD Sales Analysis Reports Rebate
S01-06 NSW Sales Analysis Reports Rebate
S46-01 Rebates-Producing Invalid Institution & Variance
Reports
End of Document
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