The Next Evolution in Deduction Management

You’ve embraced Net Revenue Optimization (NRO). Now it’s time to turn deduction recovery from a cost center into a margin lever.

For most companies, deductions are “resolved” like back-office tickets: validate, match, close. The metric is speed—Deduction Days Outstanding (DDO). The problem? Closing tickets fast doesn’t protect revenue. It just hides losses.

NRO reframes recovery as a continuously improving revenue loop—one that safeguards margins, prevents repeat deductions, and drives accountability across the business.

The Economic Case: Why It Matters

Deductions aren’t small change.

A $100 million company with 15% pretax profit could lift that by 6.6% simply by reducing and recovering $1 million of excessive deductions. In our experience, this is very achievable.

That’s why CFOs should view recovery not as an operational chore, but as a direct path to margin growth, EBITDA protection, and stronger cash flow.

From Transactions to Transformation

Traditional Approach:

• Buried in A/R
• Measured by closure speed
• Focused on cleanup, not prevention

NRO Approach:

• Transparent ownership by department or root cause
• Measured by revenue protected, profit recovered, and losses prevented
• Invalid deductions treated as recoverable profit, not “cost of doing business”
• Recovery intelligence fed back into Sales, Supply Chain, Finance, and Compliance

Without automation, recovery is whack-a-mole. With technology, you can scale, prioritize, and enforce accountability across the enterprise.

Insights, Not Just Outcomes

Every deduction, chargeback, or short-pay tells a story. In a strategic model, recovery becomes intelligence:

• Sales: Flag customers with recurring compliance issues
• Supply Chain: Spot fulfillment delays driving shortages
• Finance: Improve forecasting accuracy
• Compliance & Legal: Enforce terms of sale with data
• Customer Success: Identify accounts needing better onboarding

When deductions are analyzed, they don’t just disappear—they improve the business.

Carixa in Action: Powering the NRO Recovery Loop

Smyyth’s Carixa™ platform transforms deduction recovery into a closed-loop, self-improving system:

• Detect high-risk deductions with real-time scoring
• Automate resolution across Amazon, Walmart, CVS, and other portals
• Recover revenue with built-in workflows and document matching
• Analyze root causes to uncover systemic leakage
• Prevent recurrence with compliance and policy enforcement

This is the NRO Recovery Loop: a continuous cycle of detection, automation, recovery, analysis, and prevention.

Recovery Is the Start, Not the End

Many companies treat deduction reconciliation or recovery as an afterthought—something you do once profits are already lost. In a mature NRO environment, recovery is the starting point for protecting revenue, strengthening compliance, and improving operations.

When recovery is elevated to strategy, companies can:

• Maximize net revenue without increasing sales
• Boost margins by fixing root causes
• Free up cash and working capital
• Reduce repeat deductions and improve customer accountability

The question for CFOs is simple:
Is your deduction recovery protecting revenue—or just closing tickets?