Closing Rebate Programs
When a rebate program ends, you may need to make manual journal
entries for under- or over-estimated redemption rates to close out the program.
For example, if you set up the rebate program to use an 80 percent redemption rate to estimate the amount for deferred revenue, but the actual redemption rate over the course of the program was 100 percent, you must clear the under-estimated redemption amount with a manual journal entry. When the program cycle spans multiple accounting years, use the Prior Period Adjustment account for the debit entry, as shown here:
