Pricing

Off-invoice

A price reduction settled separately from the invoice — by rebate, claim or credit — rather than shown on it.

Off-invoice mechanisms exist for good reasons: they keep published prices stable, they let the reduction be conditional on behaviour, and they preserve confidentiality between channel partners.

They also create the entire visibility problem. On-invoice reductions are impossible to miss; off-invoice reductions are invisible in the order system and only materialise in a different ledger, often a quarter later.

Related terms

Pocket price

What you actually keep from a transaction after every on-invoice and off-invoice reduction.

Bill-back

A claim raised against a supplier to recover the difference between standard cost and an authorised lower price, after the qualifying sale has happened.

Rebate

A payment made after a qualifying transaction, returning part of the price based on volume, growth, mix or behaviour agreed in advance.

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