Travis Perkins plc – Annual report – 31 December 2025
Industry: distribution
13. Supplier income
Accounting policy
Supplier income comprises fixed price rebates, volume rebates and customer sales support.
Fixed price and volume rebates received and receivable are initially deducted from the cost of inventory and therefore reduce cost of sales when the goods are sold. The cost of inventory held on the balance sheet reflects the impact of these rebates.
The Group receives customer sales support payments that are made entirely at the supplier’s option, that are requested by the Group when a specific product is about to be sold to a specific customer and for which payment is only received after the sale has been completed. All customer sales support receipts received and receivable are deducted from cost of sales when the sale to the third party has been completed, i.e. when the customer sales support payment has been earned.
Supplier income receivable is netted off against trade payables when there is a legally binding arrangement in place and it is management’s intention to do so, otherwise amounts are included in other receivables in the balance sheet.
Supplier income balances included within the Group balance sheet are as follows:
Accounts examples 