Deductions Management
Automate the entire deductions lifecycle—from identification and validation to dispute resolution and recovery. Our AI-powered platform helps you reduce invalid deductions, accelerate cash recovery, and improve customer relationships.
Identify and dispute invalid deductions automatically, recovering up to 30% more revenue.
Cut deduction resolution time by 60% with automated workflows and intelligent routing.
Provide transparency and faster responses to customer deduction inquiries.
Achieve industry-leading recovery rates with AI-driven dispute strategies.
Eliminate 80% of manual deduction processing with intelligent automation.
Get real-time insights into deduction trends and customer behavior patterns.
Our SOPs are built on years of industry experience and best practices from leading finance teams.
Establish clear protocols for identifying deduction types (trade, shortage, pricing, returns) and coding them correctly in the system. Implement automated matching against trade promotions, contracts, and delivery records to validate legitimacy. Maintain a deduction reason code library aligned with industry standards.
Define escalation paths based on deduction amount and customer tier. Establish response time SLAs: initial acknowledgment within 24 hours, documentation request within 48 hours, and resolution target of 10 business days. Maintain comprehensive audit trails for all dispute communications.
Cross-reference all trade deductions against approved promotion calendars, accrual balances, and contractual terms. Validate deal sheets, billbacks, and scan-down claims. Implement automated accrual reconciliation to prevent over-deduction scenarios.
Standardize deduction notification templates with required documentation lists. Implement proactive communication for high-value deductions. Maintain customer-specific communication preferences and escalation contacts. Document all customer interactions in the deduction case file.
Deep domain expertise built into every feature, based on years of industry experience.
Trade deductions include promotional allowances, markdowns, and advertising co-op. Shortage deductions claim products were not received in full. Pricing disputes involve claimed invoice errors or contract price mismatches. Return deductions cover product returns and damages. Each type requires different validation approaches and documentation.
Best-in-class organizations maintain deduction rates below 3% of gross sales. Average deduction resolution time should be under 15 days. Recovery rates for disputed deductions typically range from 40-60%. Invalid deduction rates should be monitored and kept below 25% of total deductions. DSO impact from deductions should not exceed 5 days.
Large retailers often have complex deduction programs with multiple promotional vehicles. Understand each customer's deduction calendar, approval hierarchies, and documentation requirements. Some customers deduct at shipment, others at payment. Build customer-specific deduction profiles to predict and prevent invalid deductions.
Maintain compliance with trade promotion regulations and anti-trust laws. Document all promotional agreements with clear terms and conditions. Understand statute of limitations for deduction disputes in each jurisdiction. Implement proper approval workflows for high-value deductions and write-offs.