Siebel Consumer Goods Guide > Deductions and Claims >

About Deductions

Deductions occur when customers submit a partial payment of an invoice. The unpaid balance is a deduction. The consumer goods organization needs to research the reason behind the deduction and resolve the deduction appropriately.

About Types of Deductions

Each deduction type has a different purpose as follows:

• Account Promotion deductions. The customer claims a deduction because of a current account promotion.
• HQ deductions. This type covers all other deductions, including late deliveries, goods arriving damaged or expired, and invoicing errors.

About Generating Deductions

The process of generating a deduction begins when your accounting department receives a partial payment for a customer invoice. You can pass the deduction information to the Siebel Consumer Goods application in several ways, depending on your company's implementation of the product.

Methods can include:

• Integrating back-office software with the Siebel Consumer Goods application.
• Accounting department personnel manually creating a deduction record.

About Resolving Deductions

The account manager or customer financial service representative resolves deductions. Options for resolving deductions include:

• Rejecting the deduction and recharging the customer (chargeback).
• Approving the deduction and applying its cost to one or more trade fund allocations.
• Writing off the deduction.
• Applying a credit memo.