Deduction Reconciliation enables organisations to streamline their deduction reconciliation
processes by auto-matching customer generated debit notes with credit notes 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 only 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 a lot of documentation in order to
investigate and resolve the deductions

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

Deduction reconciliation enables automatic reconciliation of 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 downloaded 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:

Ability to import a returns file (OCR generate file, EDI file, Spreadsheet, Trucker Detail)
electronically into a work file (by batch number and date)
Import and identification of deduction files including deduction codes
Ability to auto-create deductions in JDE for the records received on their electronic file
Ability to match deductions to credits in the AR database (user definable match criteria)
and post in JDE
Deductions Exception report generation

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

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Automate Deduction or Dispute Reconciliation

Cashbook have provided us with the
tools to effectively record and reconcile
centrally all cash movement within the
Bridgestone Group. In our company the
volume of cash transactions is huge so it
is vital that we can easily distinguish
different types of transactions at the 60+
retail outlets and batch transactions to
allow for effortless reconciliation at Head
Office. Cashbook has allowed us to do
just that.

Yvonne Pondes, Financial Business Anaylst,
Bridgestone, New Zealand