Yashwant Divakar [0:04]
Let’s take a quick look at the deductions cloud system offered by HighRadius for the automation of the deductions resolution process. As part of any deductions, the three key stages involved are gathering the required backup documentation, performing internal research, and validation to identify whether the deduction is valid or invalid. And finally performing the required resolution activity and workflows. All three can be performed by the HighRadius tool, as you can see on the screen right here. It’s a browser-based application that the users can log into, and they would have their own worklist of deductions to be working on. This system already has integrations built out with 300 Plus portals globally. So we’re able to automatically pull in the claim document that the customers might be provided to you either in an email or a website format, proactively, and extract all the relevant information from within that document. So the system automatically knows now the reason for the deduction, if it’s a shortage or a return, or pricing, even item-level information from within that deduction, on the reasons why the customers have taken it. Similarly, if you’re using internal or external carrier deeds, carriers to transport the stuff, we can even gather the proof of delivery or bill of lading documents from portals such as UPS or FedEx, or even internal repositories where these documents might be stored.
Yashwant Divakar [1:31]
Once those documents are retrieved, the system is basically creating the deduction within the tool and prioritizing it for your analysts to work on. In a real-life scenario, Kroger might take a deduction today, and they actually might send you the check that pays for the invoice corresponding to the reduction 30 days from now, 45 days from now. So in your current world, you might be starting to research the deduction on the 45th day when the payment hits your bank account. Whereas with our tool, you’ll be able to start researching those deductions that aren’t the day that they take them because we frequently monitor the portals and retrieve those documents. Once those documents are retrieved, you can actually see that the system has identified all the line items, the reasons behind them, what’s the unit cost, etc. And based on the details that it collects, the system can even go ahead and do the comparison. So in this particular example, the customer has claimed the list price. So it’s identified from the claim document, what are the units, and what are the costs of that particular unit. Now, this can then be compared against the details within your ERP system and the agreed contracted price of each of those items.
Yashwant Divakar [2:44]
By doing a comparison, the system is able to give you a suggestion on whether this particular deduction is valid or invalid. So if I go into the resolutions tab, the system has basically performed a roll-up of all those items based on the product hierarchy. And then it’s basically asking you not to resolve this because this is an invalid ask from the customers. And the variance piece is basically showing you the status of the processing automatically based on the comparison it was able to do in the background. Based on this, you’ll be able to then perform the resolution from right from the system where you can go ahead and offset this or void the deduction. And you can basically say, Hey, I’m going to reject this so that you need to collect back on this particular invoice. The last piece again is some of the major retailers might want you to log into the portal and fill up a form indicating the deduction is invalid. And even in those scenarios, the system has the capability to do that out of the box, where we can basically go onto the website and automatically create the deduction for you by filling up the form on that particular website. So high level, all of the processes in terms of gathering the backup documentation and validation in this particular example were done by the system automatically. And the user is just required to validate it quickly. And this is something that you can choose to automate completely in the long run. Once the system you’re comfortable with how the system operates. The other point that I want to cover in this quick demonstration was the validated predictor that you can see right here. So this is the AI capabilities built into the deductions tool, where the system is looking at the past historical behavior of the customer, the region, then the payment behavior of the customer, and identifying those deductions which are valid and invalid.
Yashwant Divakar [4:32]
As you might know, in today’s world, a big chunk of the deductions tends to be valid, and hence identifying those collectible invalid deductions becomes a needle in a haystack problem. But with our capability to predict the validity of deductions and the confidence score, you might be able to automate a lot of this. So now instead of looking at 100 deductions to identify the 20 or 30 deductions that might be invalid, the team might be looking at only 40 or 50 deductions. Similarly, a lot of our clients have also been able to reduce the tolerance right off-limits that they have. Because even if a deduction is below the tolerance, the system can be activated to run this prediction. And if any of those deductions are predicted to be a high degree of invalidity, then it might make sense for the users to review those deductions. Now, the output of the validated prediction plus the invoice amounts and the reason codes can basically call out these actions that tells you whether you need to do further research system suggesting you to automatically issue the resolution or if it’s just a quick validation that is required by the users, but the system was fairly confident on what the situation is. So there are just two very quick ways in which deductions cloud will help you automate the deductions process for your team.
