Smyth Solutions
Smyth Solutions CUSTOMER DEDUCTIONS
Plague on Profits - solved

Deductions are the bane of the corporate revenue and sales function. The balancing act between timely processing against the need to carefully audit for systemic problems and customer errors is challenging. Even if this expense is hidden in "budgets" or is considered a "cost of doing business", it nevertheless costs you millions of dollars every year that could be recaptured. Our management team has $1 billion of successful deduction experience.

Problems

  • Lost profits - often millions
  • Chronic, systemic process failures
  • Accounts Receivable backlogs
  • Inaccurate accounting accruals
  • Negative customer impact
  • Regulatory and accounting issues

Our programs include a rigorous audit, detailed research, and most importantly, recovery of lost revenues and profits. You'll receive a Management Report with root causes and improvement opportunities. Seamless execution, no operations disruption, and outstanding customer service.

Deduction Profit Leakage
We manage Deductions and recapture this "profit leakage", including trade promotions, post audits, freight claims, shortages, non-deliveries, rebates, contract pricing, cash discounts, vendor violations, duplicates, price-protection, ship and debit, returns variances, double discounts and credits, reconciliation, sales tax, etc. We outsource Deductions anywhere in the cycle, from Day 1 through write-offs and post audits.

Our turnkey, focused approach yields greater recoveries with no staff interruption. We:

  • Cleanup backlogs
  • Research post-audits
  • Audit write-offs
  • Reconcile accounts
  • Identify root causes

Escheatment - We reconcile and apply credit memos to clean up your books and identify those you can reverse to the bottom line, while avoiding escheatment forfeitures.

Unbilled Revenue
Your company may have significant Unbilled Revenue that results from high volumes, system snafus or offline processes. We'll uncover significant revenue findings with no interruption to your staff, through an expert audit process, as well as identifying the causes.

Virtuous Cycle
With our "virtuous cycle" of Identify > Research > Document > Collect, we:

  • Increase deduction recoveries dramatically
  • Reduce incoming deductions
  • Speed-up resolution
  • Provide actionable information on root causes
  • Clean up customer accounts

    Carixa™ systems are specifically designed for deduction management, and they provide the tracking, root cause identification, and collaborative workflow to optimize efficiency and the recapture of erroneous deductions. We are comfortable with very large volumes


  • Smyth Solutions

    Domain Expertise

    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.

    Smyth Solutions
    Smyth Solutions
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