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Home | Deductions Today Search 
Free Report!
Problems With Deductions?

Deductions are growing worse all the time. In fact, at many companies, deductions are more significant risks than bad debts. Here you'll find solutions to help you cope with this big problem and save tens, if not hundreds, of thousands dollars for your company. Learn the top 5 causes of deductions, how to reduce unearned discount deductions, how to resolve post-audit claims, and how to read routing guides and compliance manuals for fun and profit!

Establishing a Policy for Post Audit Claims
Customer reviews of past purchase orders and the post audit claims these reviews generate are now among the top three or four complaints we're hearing from credit managers. What's the solution? Accord . . . keep reading
Automatic Write Offs for Small Deductions
I attended an industry credit group meet last week where I was accused of heresy when I told the group that we have created a policy that small deductions or disputes are automatically written off by . . . keep reading
Is Industry Concentration Prompting Deduction Abuse? Expert Offers Seven Ways to Limit and Control Deductions
"Deductions are sucking the lifeblood out of a lot of our clients," complains Gregory Paul, an associate with MCD Credit Consulting Company (Rancho Santa Margarita, Calif.). One of my clients had almo . . . keep reading
Deduction Management - Cutting Research Time
The legitimacy of most of the deductions most customers make is not usually an issue. The issue is the time and effort you have to spend researching these deductions. Decorative Home Accents (Abbevill . . . keep reading
Controlling Chargebacks--The Compliance Department
Never, never give a customer an excuse for not paying in full and on time. That's the first rule of credit management. Unfortunately, there are invariably issues within both your own company and your . . . keep reading
Strategies for Recovering Unearned Discounts
Problems with customers taking unearned discounts? Here are six strategies to prevent customers from paying late and taking the discount:
  1. Dispel the standard practice myth. Some customers believe unearned discounts are standard industry practice. Contact trade
. . .
keep reading
Coping With Customer Deductions
It may seem hard to believe, but accounts receivable has grown at a faster pace than either inventory or sales during the past two and a half decades. Although much of this buildup in A/R has its root . . . keep reading
Reduce Error-Related Delinquencies
Even if your company prides itself on excellence in the areas of receiving orders, shipping, and invoicing, anything less than 100% accuracy can lead to problems. Anytime ordering, shipping, or billin . . . keep reading
And Now We Have to Pay Interest?
It's bad enough that as trade creditors we've become banks of last resort. But along with supplying customers with their working-capital needs, are we going to have to pay them interest on early payme . . . keep reading
Deduction Trends: Expert Offers Up the Latest Problems and Solutions
Most deductions are legitimate. Many are a nuisance, and having too many can be a serious and largely unnecessary financial drain. The solution extends well beyond remittance processing into a company . . . keep reading
Here's How You Can Take Advantage of Pre-Deduction Notification Information
By Jessica Butler
In the November 2007 issue of Credit Today, I wrote about how pre-deduction notification information ("pre-notifications") provided by more and more retailers can help vendors avoid deductions. In th . . . keep reading
Pre-Deduction Notification Information Can Help You Avoid Deductions
By Jessica Butler
More and more retailers are providing vendors with Pre-Deduction Notifications ("Pre-Notifications") or information on violations and errors received (at least seven days) before an actual deduction i . . . keep reading
Deduction and Dispute Best Practices: Thirteen Best Practice Steps To Implement
Deduction and dispute handling is a critical receivables management function. Not managed properly, deductions can sap credit department productivity and severely dampen performance. The problem stem . . . keep reading
Oracle Digs in on Deductions: Some Compelling Facts & Why They’re Here to Stay
Oracle, which in the process of developing the credit and A/R module of its ERP software, has thought through the deduction problem faced in most credit departments and come up with some insights all . . . keep reading
Deduction Problems? Here’s What You Should Know About the Most Enlightened Approach of All – Technology to Help You Invoice Right the First Time!
Credit and Collection Technology Buyer’s Guide
Deduction Problems? Here’s What You Should Know About the Most Enlightened Approach of All – Technology to Help You Invoice Right the First Time! Deductions have long been the bane of many, if not most credit execs. Until recently, most efforts have focused on more efficient ways to clean up the deduction mess that credit departments inherit. But of course, the best solution is to track down the original cause of the deductions and stop them before they occur. Today, several types of products have evolved that proactively address the related issues of invoice accuracy and dispute prevention. While deduction and dispute management software products address the issue after-the-fact by providing workflow and tracking, invoice accuracy and dispute prevention solutions are focused on eliminating the problem before it occurs with accurate billing. . . . keep reading
Deductions Prevention Comes of Age
March 1, 2005, By Sanjay Srivastava
Deductions Prevention Comes of Age Deductions, or charge backs, can be a normal part of doing business. Rebates, co-op advertising, mark-down allowances–these are part-and-parcel of selling into a competitive environment. But too often, deductions are a way of leaving money on the table. Pricing and product configuration errors, over- or under-shipments, unearned promotional discounts, unauthorized free or expedited shipping–these are examples of unnecessary deductions that erode margins and your company’s ability to be competitive. . . . keep reading
Negotiation Basics for Deductions & Chargebacks: How to get the other person to see things your way
October 1, 2004, By Jessica Butler
Negotiation Basics for Deductions & Chargebacks: How to get the other person to see things your way Have you ever thought about how much of your life is spent negotiating? If you are like most people, probably not. Do you realize that every time you are having a conversation with someone who has a different point of view or a different opinion than you, you are actually negotiating with them? And it is not only in business situations, but all conversations with children, spouses, family and friends as well. . . . keep reading
Eight Keys to Winning the Deduction Battle
Eight Keys to Winning the Deduction Battle No matter how you look at it, deductions are a pain in the neck. But while fighting deductions can seem a lonely battle, that needn't be the case. Industry groups that focus on deduction management and prevention provide credit pros with a forum for exchanging practical ideas that when implemented can have a positive impact on your organization. . . . keep reading
Yes, Maybe We Really Have Turned the Corner on Deductions
September 1, 2004
Yes, Maybe We Really Have Turned the Corner on Deductions Following the release of our Salary Survey data last month, we received a call from a subscriber wondering about our data that showed an overall reduction in time spent by credit departments on deductions. This credit exec, from a consumer products company, is battling deductions on a scale as big as ever, and says he sees no sign of slowing down. He also checked in with an outsourcer friend, who confirmed that their clients were still having significant problems with deductions. . . . keep reading
There Are Some Good Reasons for Deductions to Rise at the End of the Year
March 1, 2004
There’s still lots of suspicion out there about the intentions of some customers with regard to deductions, but precious little evidence that customers are using deductions at year-end to artificially . . . keep reading
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  • What the primary challenges are relative to the processing of credit apps
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