The platform is a SaaS solution. The software charges retailers a commission for use of the service. Clubs can receive cashback on purchases made by their members, which raises accounting and operational questions for retailers. Cashback payment flows are centralised and managed by the platform.
The platform uses two accounting methods for cashback. Choose the one that best fits your accounting process.
How is the cashback amount calculated?
Cashback is the commission you choose to pay the club, expressed as a percentage of the item's recommended retail price (RRP). You set this percentage from the Commission management tab of each shop.
Note: whichever accounting option below you use, cashback and transaction fees are always deducted at source from your monthly payout — see Understanding payouts for your accounting. Only how you record it in your books changes, not the payout calculation itself.
Which document should you use as proof?
Two documents are available from your dashboard to support the cashback amount withheld:
The Transaction details export (Revenue tab), which breaks down every transaction, including the cashback amount, and can be exported as .xls or .csv.
The detailed club-by-club statement sent by the platform at the end of the season (see Option A below).
Option A — Recognise at end of season
The cashback is recognised at the end of the season based on a detailed statement provided by the platform (club by club).
Each sale is recorded as a standard sale at the full invoiced amount.
The platform invoices a transaction fee on each sale.
An offset entry is made to recognise the cashback in the customer account, with a contra entry in a holding account (e.g. account 467 or 411) created to centralise cashbacks.
At end of season, a final statement confirms the actual cashback amounts to apply.
Option B — Recognise cashback as sales occur
Cashback is deducted directly on the invoice issued to the club, reducing revenue throughout the year. Cashback is treated as a discount and therefore reduces revenue (not recorded as a cash expense).
The platform invoices a transaction fee. You record this as a supplier invoice.
An offset entry is made between the customer and supplier accounts.
At end of season, a statement confirms any remaining cashback to distribute.