“Managing deduction is often about preventing it in the first place”But this is not always possible when it comes to B2B businesses. Moreover, manually shuffling through deduction documents could be time-consuming as there is a great deal of research involved, and results in high FTE costs, which makes DDO prediction impossible. One way to tackle deductions and to manage it efficiently is through outsourcing. The Deductions process in any company has always been a highly resource-demanding ordeal. Thus, companies often partner with the third party to fast-forward their deduction process and solve their deduction related disputes. The most significant advantage of this is - it results in better ROI on the deduction process and aids in faster recoveries. However, the main catch comes in when we need to answer what should be done to select the right partner for third party collaboration and how this could affect your deduction processes. So here are the 8 points that will help you select the right partner- Dealing with a huge volume of deductions without any external assistance is a constant reminder that there needs to be a major change in the deductions process. Keeping that in mind, these are the six best practices for an effective deduction partnering:
HighRadius Deductions Software acts as a powerhouse for proactive deduction management to prevent bottom-line erosion. It provides automation, process standardization, and a platform for cross-departmental and customer collaboration. It supports deduction management by providing some key features like back-up document capture which captures deduction data from customers and supplies the information required for resolution; auto-capture proofs of delivery (PODs), bills of lading (BOLs) from carrier portals & emails; structured deduction resolution, collaboration & approval workflows to streamline the communication and approval process; along with automatic deduction correspondence, and automatic data push to customer portals. The result is a proactive deduction management operation that recovers revenue normally lost to invalid deductions.