A Billback is an accounts receivable practice of invoicing a wholesaler and retailer for products at regular price until promotional requirements are met. The deal amount will be returned later to the wholesaler/retailer. In addition, marketers allow wholesalers and retailers to deduct a set amount from the invoice they receive for merchandise. The incentive for the trade with this program is the price reduction increases the margin (and profits) a wholesaler or retailer realizes on the off-invoiced amount.
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