How Deductions and Settlement Works

Overview

When a customer short pays you, the flow is:

1. Receive a short pay from a customer, including from the Receivables lockbox.
2. Create a claim from Receivables for the short pay difference within the receipt.
3. Assign ownership of the claim.
4. Research and resolve deductions quickly and accurately.
5. Settle the claim.

With Deductions and Settlement you can:

• Centralize deductions and overpayments, with accountability and aging by:
  • Supporting lockbox
  • Creating manual claims
  • Assigning claim owners
  • Setting up aging methods

• Resolve deductions by:

  • Associate promotional accruals
  • Creating credit memos
  • Applying open credit memos and open overpayments
  • Applying write-offs
  • Applying chargebacks only for invoice deductions
• Resolve overpayments by:
  • Creating invoices.
  • Applying open deductions.
• Approve your claims.
• Schedule the Settle Customer Claims process periodically to settle the claims in Receivables in a ready-to-use and tightly integrated manner. The settlement details are brought back to Channel Revenue Management to complete the flow.
• Analyze the root causes behind deductions, with the help of claim types and claim reasons assigned while resolving the claim.
• Proactively analyze write-off thresholds through occasional review of claim write-offs.

Business Process Flow