Introduction To Automated Deductions Management For Executive Working In Finance
Automated Deductions Management Application
As executives leading finance organization, ensuring that the order to cash process flows smoothly and efficiently is of paramount importance. Automated deductions management (ADM) is an increasingly popular and powerful solution which consists of suite of software applications that take over repetitive, manual tasks associated with applying deductions. The Softwarespeeds up key steps in the order to cash process, such as remittance processing and customer disputes, and allows the finance team to use their time more productively by automating mundane process and tracking charges, credits, deductions and payments more efficiently.
This article provides step-by-step guide to understanding and using an ADM solution in your order to cash software and outlines how you can use the technology to increase revenue and reduce delays with customers that can impede cash flow.
Step 1: Set Up Your Company to Use Automated Deductions Management
The first step in using an ADM solution is to set up the software for your particular company. This includes starting with the setup of the rules engine which will determine how deductions for customer credits and payments are made; setting up the internal processes that will determine how information is passed from your system to the deduction software; and format studies of the EDI files from customers to detect unusual pricing and payment methods.
Step 2: Define Your Business Rules
Once the power of automated deductions has been implemented, the finance team must then define the business rules that will govern how the software operates. This includes parameters such as how long to wait before making deductions, how many deductable items to use, how much to deduct, how often to reduce payment amounts, and how to resolve payment shortfalls. This is an important step in order to ensure the software operates in manner consistent with the companies business practices.
Step 3: Integrate Your Internal Systems With the Automated Deductions System
In order for the companies order to cash system and automated deductions system to share data, the two systems must be able to communicate. This can be done by integrating the order to cash system with the ADM solution. This includes making sure that the data flows correctly between the two systems, that the data points are correctly being entered and stored, and that the appropriate payment documents are being shared between the systems.
Step 4: Monitor Cash Flow Patterns
It is important to monitor the cash flow patterns that are generated by the ADM system. Doing so can reveal any issues that may be affecting the companies payment or deduction patterns, identify deductions that should be applied, and alert the finance team to any changes that may be needed to be made in order to maintain compliance with internal policies.
Step 5: Analyze the Results
The final step for using automated deductions management software is to analyze the results of the system?s work. This includes analyzing deduction discrepancies, understanding the cause of any payment delays, and evaluating the overall performance of the system. Doing so can help the finance team determine where additional resources may be needed in order to ensure optimal performance of the ADM system in the future.
Conclusion
Automated deductions management is powerful tool that can help business run its order to cash process more efficiently and cost-effectively. By utilizing the step-by-step guide outlined in this article, executives working in finance can use this technology to streamline the process of applying deductions, reducing delays, improving cash flow, and providing better overall customer experience. With the right software in place, business of any size can benefit from faster, more accurate, and easier deductions management.
