Expert Deduction Management Practices
At Smyyth, we offer a deduction management system that does everything you want it to — save you money and recover lost profits from invalid or excessive deductions. Customer deductions represent hidden profit and revenue leakage that, for many companies, totals millions of dollars every year. In some industries, erroneous deductions can cost from 2%-5% of company revenues.
Problems with Your Current Deduction Management System
At Smyyth, we offer breakthrough deduction management services that include the re-engineering and automation of Deduction Management processes to optimize, streamline, and speed customer deduction resolution, and capturing of lost profits. You need our system if you’ve noticed that:
- Many deduction categories are wrong or excessive. “Post Audit” deductions, for example, often have a 50%+ error rate.
- Many deductions are due to vendor compliance and process errors which, if not corrected, will continue to cost you profits year after year..
- Even the small-dollar “below threshold” deductions you write off automatically add up to large repetitive, systemic losses.
- Administrative costs are high relative to the cash return from deductions.
In addition to recapturing excessive deductions — even those already written off — we identify the root causes to reduce future deductions, delivering continuing bottom-line impact.
Our Deduction Management System
Our best-practices deduction programs begin with root cause analysis and research. We use these processes to help aid in the prevention and recovery of excessive deductions. Our team offers seamless execution and outstanding customer service, furthering the effectiveness of the overall system.
With the implementation of our streamlined Carixa™ deduction management engine, we take a focused and automated approach that yields greater cash recoveries and significant corporate benefits. Our Carixa technology works with any client system, and our approach is customized to match your policies and processes. The online management dashboards always keep you in the loop.
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 with any system is simple. Carixa always keeps you in the loop, with 24/7 access to detailed activities as well as management dashboards.
No matter what your major problems are, our deduction management is proven to reduce deductions and optimize cash recoveries of every type of dispute or deduction that negatively impacts your bottom line.
There are four general categories that deductions fall under. These include:
- Planned or Agreed
These types of deductions include trade promotions, markdowns, and RMA returns.
Preventable deductions include: vendor compliance, shipping and packing errors, order edit errors, EDI errors, billing errors, confusing trade promotion deals, and substitutions, split shipments.
- Customer Error, Unauthorized, or Excessive
These types of errors come from customers receiving errors; returns pricing, quantity, or SKU; wrong pricing; inapplicable trade promotions; unearned discounts; and excessive penalties.
- Post-Audit Errors
Post-audit errors include inapplicable trade promotion, double (or triple) deductions, data sharing between auditors, inapplicable discounts, and inapplicable terms.
Benefits of Using Carixa™ for Deduction Management
Using Carixa™ for deduction management can reduce deductions significantly. With Carixa™, you can:
- Eliminate preventable deductions, identify and fix root causes
- Increase deduction dollar recoveries dramatically
- Reverse credits to the P&L
- Identify unbilled revenue
- Speed-up resolution times
- Reduce Deduction Days Outstanding (DDO)
- Clean up A/R backlogs
- Reconcile accounts
- Audit and Recover post-audit deductions
Use a Proven Deduction Management System
With Carixa™ and our practiced deduction management system, we’ve been able to get results for companies around the world. To learn more about our deduction management system, our account reconciliation process, or topics like post-audit claims, call us at 855-982-1475 or contact us online.