What Is a Rebate True-Up?
A true-up is an accounting adjustment that corrects an earlier estimate to the actual figure once it is known. For rebates, a partner accrues an estimated earned amount as a period progresses, then trues it up when targets firm or payment settles - reversing or adjusting the accrual so the books match what was really earned and paid.
Why it matters to IT channel partners. Rebate accruals are estimates, and estimates drift. Targets move, eligible product mixes shift, and final tiers are not certain until a period closes. The true-up is what keeps the accrued figure honest, aligning recognized income with reality under the matching principle. Without it, a partner carries stale accruals that overstate or understate rebate income and undermine the numbers finance relies on.
Related terms
FAQ
When the actual earned or paid amount becomes known - as targets firm during the period or at settlement - so the accrued estimate is adjusted to match reality.
Keep every rebate accrual trued up automatically → Explore Rebates-On