This e-book presents information on deduction automation that every A/R leader should know before starting their automation journey.
Deductions volumes have been growing over the years, making it more challenging for companies to handle the work with existing resources. According to the 2018 Customer Deduction Survey, 32% believe overall deduction dollars as a percentage of sales in the past 12 months have increased.
While deductions continue to surge, the main concern for managers and supervisors is to ensure adequate coverage and research for the incoming deductions and to meet targets with a lean and effective team. Companies will continue to lose millions of dollars if the gaps in deductions research, write-offs, and invalid deductions processes are not identified and filled. The threat is also amplified by the fact that customers are becoming more stringent in their deductions policies, sometimes engaging third-party services to explore discrepancies in transactions and raise disputes post-audit.
Automation plays a crucial role in helping companies return their focus to high-value activities. A majority of the constraints hampering credit and A/R managers could be overcome by identifying low-value manual activities in deductions processes and automating such wasteful steps. Keeping that as a focal point of discussion, this article analyzes the nature of deductions and the low-value manual tasks that are taking up valuable time and resources. Best-in-class automation options available for speeding-up the resolution process will also be explored.