Customer deductions represent hidden "profit leakage" that for many companies totals millions of dollars every year. Consider the following chart, comparing bad debts with typical deduction experience.

• A significant percentage are incorrect or overstated, and can be recaptured after research and documentation. Depending on the industry, the potential recapture can amount to 1 or 2% of annual company revenues.
• Many deductions are a reflection of process snafus and disconnects which, if not corrected, will turn into systemic deduction generators.
• The overhead expense, when all departments are included, is very significant, usually far exceeding other accounts receivable overhead.

We have broad industry deduction experience, specialized staff, and best-in-class technology to solve the problem, always keeping you in the loop with collaborative technology and reporting.

Deduction Outsourcing and "Cure" Projects

Our programs include audit, detailed research, and recovery of lost revenues and profits. This includes trade promotions, post audits, freight claims, shortages, rebates, contract pricing, cash discounts, vendor violations, duplicates, price-protection, ship and debit, returns variances, double discounts and credits, reconciliation, sales tax, etc.

Our focused approach yields greater cash recoveries and significant corporate benefits with seamless execution and outstanding customer service.

Benefits

• Increase deduction recoveries dramatically
• Reverse credits to the P&L
• Identify unbilled revenue
• Speed-up resolution times
• Clean up AR backlogs
• Reconcile accounts
• Combat post-audits
• Identify root causes

Workflow, Systems, Reporting

Carixa™ Credit-to-Cash, our collaborative internet-based system has the most comprehensive and powerful deduction processing capability in the industry, including workflow, controls, rules, dashboards, metrics, root cause reporting etc. Integration is simple. Carixa systems always keep you in the loop, with 24X7 access to detailed activities as well as management dashboards.

Plague on Profits – solved

Deduction management is the most complex facet of accounts receivable management because of the interplay of company, third party, industry and customer policies and processes: trade promotion, pricing, discounts, logistics, inventory, transportation, and compliance.

Depending on the industry, deductions can average as high as 5% to 25% of sales.

Deductions are subject to misinterpretation, error and abuse, as well as being the catalog of every mistake (both yours and your customer's) in product, billing, shipping, timing, promotion and pricing. If not properly documented, companies have run into trouble with Sarbanes-Oxley.

Because so much money is involved, expert scrutiny and systems are mandatory in order to make sure that profits are not lost.