Innovative Solutions For Financial Deduction Management: A C-Suite Primer
Infor Deduction Management
Financial deduction management provides powerful avenue for reducing costs and mitigating risk. This article provides an overview tailored for executives looking for an Order to Cash solution that can streamline the deductions process. With the right system in place, business can optimize its deduction management efforts to reduce present and future costs.
The optimization process begins by understanding the financial deductions landscape. This landscape is composed of two distinct types of financial deductions: payments compliance and bad debt. business can achieve optimal efficiency by identifying which deductions fall under each category, establishing plan for handling each, and integrating the appropriate technology into their operations.
Payment Compliance Deductions
Payment compliance deductions result from the failure to adhere to the payment terms regarding pricing, quantity, or product specifications. These deductions are typically found in contracts from vendors and customers. To optimize the deduction recovery process, executives can use solution for pinpoint accuracy in identifying and analyzing customer deductions. This solution takes into account customersales activity and tracks it against specified customer contracts, allowing for greater transparency and improved accuracy in capturing deductions.
To reduce the risk of an accumulating burden of unpaid customer deductions, businesseshould also employ an automated process to collect customer payment compliance deductions. Such process yields heightened control, providing visibility into the entire deduction collection process. Automation also reduces the manual effort required to manage these deductions, resulting in increased sales and profitability while also freeing up more of business resources.
Bad Debt Deductions
Bad debt deductions are due to customer default or insolvency. These deductions include returns, allowances, and bankrupt claims, as well as any customer payments that may have been missed due to internal error. To quickly identify bad debt deductions and begin collection efforts, executives can implement sophisticated bad debt recovery system. This system can deploy multiple tailored strategies for efficiently resolving open accounts and minimizing losses.
Some of these strategies may include contacting delinquent customers by email, mail, or telephone. Automation also plays key role in reliably carrying out these strategies and recovering unpaid bad debt, as the technology can be leveraged to collect and monitor customer disputes. Executives then have the ability to track results and performance across the lifespan of deduction, allowing them to react and adjust their strategies as needed.
Integrating the Right Technology
Executives can also use solution for advanced deduction intelligence to gain insight into their current deduction management strategy and uncover potential opportunities for financial expense reduction. This technology is able to detect and prevent repudiations, maximizing customers? returns. Additionally, by developing data-driven models that can match vendorship agreements to expected files, executives can generate timely predictions on the potential for customer deductions.
Furthermore, tailored deduction recovery system with automated functions can allow business to create and manage custom alerting and notification processes. Alerts can be gauged according to customer ranking and invoice age and can cover all types of deductions, allowing business to take fast action in the event of any irregularities.
Conclusion
Finance deduction management can be powerful tool for reducing present and future costs; however, executives need to be mindful that this process is dynamic and often labor intensive. By selecting the right Order to Cash solution and educating themselves on the financial landscape, they can deploy the proper strategies to maximize the efficiency of their deductions. Such solution will allow them to increase visibility into their customer deduction process and make efficient use of their resources. Ultimately, this will increase their cost savings, optimize the customer dispute resolution process, and create more opportunities for profit.
