Deduction Reconciliation

Deduction Reconciliation enables organisations to streamline their deduction reconciliation processes by auto-matching customer generated debit notes with credits on customer accounts. We can reconcile at SKU level, PO Number, Quantity level, Unit Price level or Value level or a combination of a number of these. Our aim is to quickly identify the deductions that should be automatically approved and processed.

Deduction related transactions arise for many reasons and can be split into two categories, authorized deductions e.g. Rebates , Bulk Quantity discounts and unauthorized deductions e.g. such as pricing discrepancies, returned product and freight issues.

Business Problem

– Customer requests return of e.g 1000 items of product.
– RMA/Sales Return is issued on our ERP system at original sales price.
– Product is returned with on 900 items of product.
– Goods are received into warehouse and Credit Note generates for
   900 items of Product at current sales price.
– Customer then takes a deduction for 1000 items of Product at incorrect    price.
– Credit note on AR ≠ Deduction included in Payment remittance.
– The AR analyst then has to search through various documentation in    order to investigate these deductions and resolve.

Business Solution

– Reconciliation to identify the discrepancies
– Reporting to customer to clearly identify what has not been received and    where there are issues i.e.pricing or quantity or both.

Cashbook’s Reconciliation Module automatically reconciles customer deduction files with Sales return credits generated from inbound receipting of goods being returned. Within Cashbook all open credits for a particular customer are download into one side of the Deductions reconciliation. The supplier debit memo - returns files (Either electronic or hard copy) are loaded into the other side of the reconciliation. Cashbook then uses various matching algorithms to identify the mismatch between the return and the credit memo issued on the ERP. An automatic report is generated and issued to the supplier showing the discrepancies. As this report is issued on receipt of the goods the issues are resolved prior to payment being made on the account. Action to correct the problem is initiated prior to remittances being received. The result is that a greater number of deductions are matched on receipt of remittance advices.

Features

Benefits

• Reduction in number of open deductions.
• Automatic matching and validation of customer deductions with system credit memo’s.
• Deduction Exception report identifying issues with returns.
• Detailed Audit Reports.
• Improve Customer relationships.