What is Deduction Audit & Recovery?
Deduction Audit & Recovery is the process of matching and researching retailer and distributor trade allowances, discounts, returns, shortages, and other chargebacks deducted from payments to suppliers, in order to identify and then to recover excessive or invalid deductions. This deduction audit service protects the profits the suppliers would lose and is performed by industry deduction experts using sophisticated accounts receivable reconciliation software tools. Our recovery audit solutions include deduction root-cause reporting to prevent continuing, chronic chargeback losses that can amount to millions of dollars annually, from 1% to 5% of revenues for a CPG company.
Recover Profit and Revenue Leakage From Deductions
Smyyth can perform a profit recovery audit to recapture millions of dollars that slip through the revenue cycle cracks. Our recovery audit services include audit, research, and most importantly, recovery of the lost revenues and profits from deductions and receivables. You will receive a Management Report with root causes and improvement opportunities. Seamlessly executed, with outstanding customer service, and without disruption to your operations.
Capture lost profits from deductions and receivables writeoffs
Identify systemic problems costing you money
Solve chronic customer or vendor process errors
No-risk success fees
Have a dedicated team to manage all or just the aged deductions
Our revenue leakage audit services analyze and evaluate massive data, enabling coding, and identification of payment and deduction errors, excessive chargebacks, or any high-volume process where errors can occur. Our multi-factor matching and reconciliation systems can handle any data on any scale.
Deduction Audit & Recovery Programs
Unresolved backlogs of customer deductions and chargebacks, credits, and debits are directly hit profits and often caused by systemic operational or customer errors. We analyze, resolve, and recover what would otherwise be lost profits.
Retail Post-Audits Analysis and Recovery
Post-audit deductions initiated by accounts payable auditors are frequently in error - often 50% wrong - but extremely complex and time-consuming to analyze. Our special software enables us to track and audit these claims and recover excessive claims.
Offshore BPO Audited For Revenue Slippage
Many large companies use offshore BPO for F&A, which includes receivables and deduction management. Deductions are complex, and frequently the loss in recoveries is very significant. We audit and follow through to make sure all incorrect deductions are recovered.
Accounts Receivable Write-offs Audited For Recovery
Before you write off receivables, we will audit them to ensure that none that are recoverable slip through the cracks.
Product Recalls Validated
A pharmaceutical company issues a recall and returns are 30% higher than expected. Smyyth audited the returns and determined that $17 million did not agree with date and code parameters, and the money is recovered to the bottom line.
Distributor Volume Rebates Verified
Wholesale or distributor rebate verification can be impossible to do manually because of the hundreds or thousands of line items involved. We have the technology to perform this function, recouping rebate overcharges.
A/R Matching and Reconciliations
Our client's biggest customer demanded payment of $17 million claiming years of billing and application errors. We used our matching and reconciliation technology to re-apply tens of thousands of transactions and proved that our client was actually owed $4.5 million, a swing of $21.5 Million.
We have decades of experience handling the most complex trading partner issues. Call for more information.
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