System Management - Equipment and Supplies
C.E.S.P. 9-10: Vendor Rebates
Policy Number: C.E.S.P. 9-10
Date Revised: 12-2-2004
Summary: Establishes Guidelines for Rebates Received from Vendor
Rebates are incentives offered by a vendor to provide additional consideration or compensation to encourage the purchase of goods and/or services from that vendor. Examples of rebates include but are not limited to cash, credit toward future purchases, free goods (including food and beverages), and coupons. Authorized rebates are the property of the University of Arkansas Cooperative Extension Service and are used to offset the expense incurred to generate the rebate. Rebates to Extension may not be used for individual or non-University purposes.
When making direct purchases, departments may not solicit rebates from vendors. Unsolicited rebate offers must be submitted in writing to the Purchasing office for approval before the rebate is accepted. In general, quantity or payment discounts should be negotiated by the Purchasing office in lieu of supplier rebates or incentive payments. However, when a rebate or incentive payment is approved it shall be returned to Extension as a check rather than credits to make additional purchases. Rebate checks must be made payable to the University of Arkansas Cooperative Extension Service. The rebate check must be deposited to the appropriate account and unit using the same Fund, Orgn and Account from which the purchase was made. If the purchase order or contract only provides for rebate credits, credits shall be used promptly to purchase needed goods and services for the University program or activity that generated the credit.