Full Service Deduction Management

Our best-practices deduction programs include root cause analysis, research and then recovery of excessive deductions. This includes customer deductions for trade promotions, post audits, freight claims, concealed shortages, rebates, contract pricing, cash discounts, vendor compliance violations, price-protection, ship and debit, channel and inventory pricing, product returns variances, cash discounts, trade discounts, reconciliation, sales tax, etc.

We reduce deductions and optimize cash recoveries of every type of dispute or deduction that hurts your bottom line.

Customer deductions represent hidden profit and revenue “leakage” that for many companies totals millions of dollars every year, in some industries as much as 1 or 2% of annual company revenues. Our services include the reengineering and automation of Deduction Management processes to optimize, streamline, and speed customer deduction resolution, capturing lost profits.

  • Many deductions are wrong or excessive. “Post Audit” deductions, for example, often have a 50%+ error rate.
  • Other deductions are due to process errors which, if not corrected, will continue to cost you profits.
  • Even the small-dollar “below threshold” deductions you write off automatically add up to large repetitive, systemic losses.
  • Administrative costs are very high relative to the cash return from deductions.

In addition to recapturing excessive deductions, and even those already written off, we identify the root causes to reduce future deductions, delivering real bottom-line impact.

We have deep deduction experience in CPG, Pharmaceuticals, consumer electronics, apparel, as well as most other consumer and industrial products.

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

Our Carixa technology works with any client system, and our approach is customized to match your policies and processes. Management dashboards always keep you in the loop.

Benefits
  • Eliminate preventable deductions, identify  and fix root causes
  • Increase deduction dollar recoveries dramatically
  • Reverse credits to the P&L
  • Identify un-billed revenue
  • Speed-up resolution times
  • Reduce Deduction Days Outstanding (DDO)
  • Clean up A/R backlogs
  • Reconcile accounts
  • Audit and Recover post-audit deductions. Click here for more on this.
Workflow, Systems, Reporting

Carixa™ Order-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 always keep you in the loop, with 24X7 access to detailed activities as well as management dashboards.