 |
CUSTOMER DEDUCTIONS Plague on Profits - solved Deductions are the bane of the corporate revenue and sales function. The balancing act between timely processing against the need to carefully audit for systemic problems and customer errors is challenging. Why should you care?
• Lost profits – often millions go un-recaptured • An environment of chronic, systemic losses due to process problems • Negative customer impact • Regulatory (SOX) and Audit Compliance issues Few companies have either the sophisticated systems or sufficient expert staff to stay on top of this problem (without resorting to regular write-offs). • Post Audits • Cash discounts • Promotion and pricing • Shortage and freight • Returns and unsaleables • Distribution claims • Proofs of delivery • Undocumented • Write-offs Leverage the amazing power of Carixa™ internet technology to improve efficiency, accuracy, and speed of deduction resolution, to optimize working capital. The Carixa Platform incorporates the newest “state of the art” technology, and up-to-date industry best practices. Smyth brings together the deduction analysis and know how, powered by Carixa™, to collect your invoices, track your disputes, resolve your deductions, and deliver exceptional results. We have state of the art Carixa technology as well as deep expertise to manage this complex area, including highly skilled management and broad operational capability. We designed Carixa for deduction management, and it provides the tracking, root cause identification, and collaborative workflow to optimize efficiency and recapture of erroneous deductions. Moreover, we are comfortable with very large volumes. — Intensive “cure” projects to clean up backlogs — Outsourcing at any point in the cycle, from Day 1 to Day 90 — Consulting to determine root causes and solutions of systemic losses — Manage high volume returns processing — Reconcile debits and credits Benefits — Carixa enables a virtuous cycle of root cause-resolution-recapture-cure — Reduce deductions outstanding and speed up resolution — Increase recoveries of lost profits due to customer errors — Provide actionable information on root causes — Clean up customer accounts |
|
Domain Expertise Deduction management is usually the most complex facet of accounts receivable management, because of the interplay of company, third party, industry and customer policies, and processes: trade promotion, pricing, discounts, logistics, inventory, transportation, and compliance. Depending on the industry sector, deductions can average 5% of gross revenues or even 25%. Deductions are also subject to misinterpretation, error and abuse, as well as representing the archive of every billing, shipping and pricing mistake. Lastly, if not properly documented, companies have run into trouble with Sarbanes-Oxley. Because so much money is involved, expert scrutiny is required to make sure that profits are not lost, as well as the systems to manage, account for and track them, both retrospectively as well as prospectively. Experienced in auditing a billion plus dollars of deductions, our management has never found a situation where we were not able to deliver found profits back to our client, as well as the valuable root cause information that can enable a company to correct the problems at the source |
|
