Rebate accrual accounting

What are your current issues? Do you have a big spike at the end of the quarter for quarterly rebates and at the end of the year for yearly rebates? Past historical volumes can work if your product lines are steady in terms of performance. However, if you are changing strategies then you should accrue based on those expected business changes. Once you establish a methodology which should be down to the SKU level, then you would have your basis for an accrual. Recognizing rebates at the end of the year can lead to major financial surprises because of your earnings volatility.