Chargeback Variance Reconciliation

Why is Chargeback Variance Reconciliation Automation Important?

The purpose of Chargeback Variance Reconciliation is to identify the detailed differences between retailer product return Debit Memos vs. the Credit Memos issued by the manufacturer for errors in RMA, SKU, NDC, Lot Number, Quantity, Serial Number, and Pricing. The objective of this matching and reconciliation process is to ensure that the amount claimed and deducted is correct.


Returns Deduction Errors are the Rule, Not the Exception

Our automated debit memo vs. credit memo reconciliation is seamless as a daily process, or a special project when you need a "global" settlement spanning many returns for a key customer.

  • Carixa RPA BOTS retrieve and append data from ERP, returns processing centers and customer portals.
  • Automated debit-credit matching and reconciliation to RMA, SKU, NDC, Lot, Price, and Date Parameters.
  • Differences are charged back or expensed according to configurable rules and policies.
  • Actionable, detailed variance reporting is available.
  • Our services are scalable to any scope.
  • Smart implementations led by experienced order to cash practitioners, usually 2-4 weeks.

Contract Chargeback Reconciliation

We have automated the time-consuming and complex deduction-credit reconciliation process. This eliminates the multi-step reconciliation cycle required when the wholesaler’s chargebacks differ from your calculations. This process can be integrated or handled offline.

For example, pharmaceutical manufacturers sell prescription drugs to wholesalers at standard wholesale pricing. Chargebacks occur when the wholesalers sell those drugs to institutions that have negotiated lower contract pricing with manufacturers. They also occur when the drugs or are eligible for government-negotiated pricing programs such as the VA, Public Health Service, etc. In these cases, the wholesaler is invoiced at the full price and the institutional customer is invoiced by the wholesaler at the applicable contract price. The difference is charged back to the manufacturer, including the wholesaler’s margin.

When submitted to the manufacturer, the chargeback must be reconciled in detail to assure that the amount correctly reflects the legitimate variance between the initial price and the ultimate contract price.

Service Benefits

  • Daily matching, processing, and reconciliation keeps your A/R clean and auditable.
  • Friction-free, tedious manual labor is eliminated.
  • Ensure that returns are within your policies and the RMA.
  • Recover excessive deductions for profit instead of writing them off as an expense.

Automated Returns Matching & Reconciliation Process

Related Content: Carixa Automated Cash Application Video

Contact us to learn more about how this Carixa module can function independently or as part of a total Carixa Accounts Receivable software solution.

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