Cut Deduction Research Time with Reason Code Automation
Capture customer reason codes from claims and convert them to ERP-compatible codes, automatically, for faster resolution.
Capture customer reason codes from claims and convert them to ERP-compatible codes, automatically, for faster resolution.
For a 40 hour week, an analyst spends:
Before
16 hours
spent manually aggregating documents.12 hours
spent matching documents and validating deductions.8 hours
of back-and-forth between departments for document approvals.
After
<1 hour
with automated document aggregation.<4 hours
with automated claims-to-deductions linking.Instant
approval workflows, reducing interdepartmental time to just minutes.
HighRadius was able to provide a solution that eliminated manual operation by providing efficiency throughout our A/R processes
Result
Laurent Gueritaine
Global Process Owner, Invoicing to Cash
HighRadius provided a cloud solution, eliminating the need for IT involvement, as it handles all updates for me.
Result
Mike Thelen
Director, Customer Financial Services
Deduction coding software is a tool that automates the process of categorizing customer deductions or claims. When customers raise disputes about invoices or payments, they provide reasons for those deductions, often in various formats and codes.
The deduction management software captures these reason codes from customer claims and translates them into standardized formats used by a business’s ERP system. This automation helps streamline the deduction management process by reducing manual errors, ensuring faster dispute resolution, and improving overall accuracy. Deduction coding software is essential for businesses dealing with high volumes of claims, as it simplifies and speeds up the process of handling customer disputes.
Automated deduction coding software uses AI and machine learning algorithms to capture customer reason codes from claims, which are often in unstructured or inconsistent formats. It translates these codes into the standard ERP reason codes used by the business, ensuring uniformity across systems.
The software utilizes a pre-built library of industry-specific reason codes to match the customer’s claim with the appropriate category. Once categorized, the deduction is automatically assigned to the appropriate team for resolution. This automation reduces the need for manual data entry, minimizes errors, and allows for quicker deduction handling, ultimately speeding up the dispute resolution process.
Deduction auto-coding software offers several key benefits such as:
Key features of deduction coding software include AI-based remittance capture, which automates the extraction of customer reason codes from claims. Another feature is the industry reason code library, which offers a comprehensive list of standard reason codes that can be applied to various claims.
Claim-to-ERP reason code mapping is another crucial feature, where the software translates customer reason codes into the standardized ERP codes used by the business. These features work together to automate the deduction process, reduce manual entry, and improve the accuracy of deduction handling, ensuring faster resolution of claims and disputes.
Automated deduction coding software allows smaller teams to manage high volumes of deductions efficiently by reducing the need for entering details manually and minimizing errors. Automation also speeds up the process of resolving customer disputes, which improves the recovery rate.
By offering a more structured and efficient approach to deduction management, small businesses can handle disputes with greater accuracy, improve customer satisfaction and increase the team’s productivity. In short, the software helps small businesses operate with the efficiency of larger enterprises.
Enterprises often deal with large volumes of customer claims, and manually handling these can lead to errors, delays, and increased operational costs. For large enterprises, automated deduction coding software allows for the seamless handling of vast amounts of claims by categorizing and coding deductions accurately.
This leads to faster dispute resolution, improving the recovery rate, thereby streamlining the order to cash process. Enterprises can also gain better insights into the root causes of deductions, enabling them to take proactive measures to reduce future claims. The automation helps enterprises stay competitive by increasing efficiency and reducing costs.
Deductions automation software, also known as Dispute Management Software, is a tool designed to streamline and automate the process of managing trade deductions taken from receivables in the O2C cycle. It helps to identify, categorize, and resolve deductions efficiently, reducing manual effort and improving accuracy.
An Automated Dispute Resolution Software helps in improving the Net Recovery Rate & increasing deductions analyst efficiency by speeding up the research & resolution of deductions using deductions validity predictor & reason code auto-matching.
The Deductions Validity Predictor uses AI algorithms that look at 100+ data points related to deductions and invoices to accurately predict the chances of a deduction being valid or invalid, allowing deduction analysts to prioritize recovering invalid deductions over spending too much time on the valid ones.
HighRadius Dispute Management Software prioritizes data security and privacy, adhering to stringent industry standards such as GDPR, ISO, PCI DSS, HIPAA, and SOC. We use strong encryption and role-based access controls to protect your financial data, ensuring confidentiality and compliance.
If you maintain all your trade promotions within your ERP system or RPA system, Highradius can pull all the relevant documentations and reason codes from there. So, you don’t necessarily have to have a Trade Promotion Management System (TPM) for us to pull in all promotion-level documents.
Yes. In scenarios where various members need to validate and approve a deduction, a multi-level approval workflow can be set up in the solution, and provide approval by logging into the solution or sending an email. This ensures that all approvals are tracked in the system, leading to transparency and accountability.
HighRadius Dispute Management Software excels with its AI Deductions Validity Predictor, a standout feature that boosts net recovery by 30%. Trained on over $10 trillion worth of transaction data, this predictive model identifies valid and invalid deductions swiftly, ensuring faster resolution.
Yes, Dispute Management Softwares seamlessly integrates with your ERP. Additionally, it can support API integration for orther financial management softwares. This enables easy extraction of specific fields like credit memos, open deductions, or open negative line items.
The implementation time for HighRadius Dispute Management Software varies based on the complexity of an organization’s requirements. However, our Speed to Value methodology guarantees swift implementation and ROI realization within 3 to 6 months, setting an industry benchmark.
The right Dispute Management Software needs little IT participation. It easily integrates with ERPs using real-time APIs and Hex (SFTP) connectors, plus it comes with pre-built modules and industry-specific best practices. This means customers can deploy remotely without much hassle or IT reliance.
