This e-book presents information on deduction automation that†every A/R leader should know before starting their automation journey.
The Credit Research Foundation (CRF), in collaboration with the Attain Consulting Group, monitors the trends in deductions across industries. A recent survey collected data from 2015 and 2018 and put forth many significant findings for the deductions practitioners. The survey report was analyzed to understand the state of deduction management for various industries.
Figure 1: % of companies reporting an increase in deductions dollars in past 12 months
32% of the respondents in 2018 have observed increasing deductions compared to 30% in 2012.
Figure 2: Invalid deductions as a % of overall deductions
Over the same period invalid deduction have increased from 6-10% to 15-20%, while at the same time the recovery of invalid deductions dollars has become less effective.
Figure 3: Invalid Deductions Recovered
Finally, fewer companies are able to complete a chargeback in less than 45 days while more companies are taking 60 days or more.
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.