Automating The Myriad Benefits Of Deduction Management
Deduction Management Automation
Comprehensive analysis of current and potential deduction processes. This includes analyzing the number of deductions per customer and the current process across all functional areas, departments and locations.
Step Two:Evaluate the current systems and software options available, while assessing the compatibility of the selected system with the existing operational systems of the organization. It is essential to leverage systems that make the process more efficient and provide information that will add value and significance.
Step Three:Create unique system identification code using the same data points and definitions for the companies business units, divisions and product lines. This creates consistency enabling deductions to be recognized and tracked in uniform manner.
Step Four:Create rules or ?Golden Source? that define in detail how deductions from the customershould be applied, what rules should be followed, and which deductions should not be accepted per the agreement between vendor and buyer.
Step Five:Track and measure configurable approval flow to ensure compliant deductions. configurable approval workflow will help identify deductions with the highest risk and expedite approval to ensure deductibles are settled on time. This will help ensure timely payments to vendors and minimize deductions that are deemed to be invalid.
Step Six:Formulate strategy to achieve full-automation. Leverage technologies to optimize the entire process while tracking and generating automatic validation and approval emails. This will automate the tedious task of manual review and approval process.
Step Seven:Timely and accurate reporting is the key to controlling deductions. Dashboards and reporting tools should be configured to give real-time visibility into deductions and deductions trends which will help in anticipating risks, trends and identify root cause of credits and deductions.
Step Eight:Explore advanced analytics techniques to identify deductions that are not being captured. Utilizing cost segregation analysis, benchmarking analysis, invoice analytics and pricing optimization can not only identify existing deductions but also reveal potential errors and deductions that have not been recognized.
Step Nine:All data collected must be stored in single unified repository that gives operators the necessary visibility needed to take proactive measures against deductions. This will enable executives to manage deduction programs across multiple locations and access the necessary information when needed.
By leveraging the power of deduction management automation, companies can now capitalize on insights to promote success and spur growth. Automation helps finance executives make well informed decisions that support long-term growth goals and propel business forward. DMS automation reduces risk, improves accuracy, improves financial flexibility and results in cost savings for operations. When implemented correctly, deduction management automation enables organizations to optimize performance in previously time-consuming, manual processes.
