Deductions Management

Jim was a financial accountant, a whiz in Excel, budgeting, and planning. After years of working in product costing, he was “promoted” to Treasury Assistant. The world of Treasury was hugely exciting to Jim but he was warned by the previous incumbent that the bank reconciliations, a key part of the job were soul-destroying.

Deductions Management is a common aspect in almost all B2B business conducted today. Investigating thousands of deductions manually can become a full-time job for staff in the Accounts Receivable department. We take a look at three common business impacts this can have.

Rise of the B2B E-commerce sector. Over the last few years, business-to-business (B2B) e-commerce has been changing rapidly. Understandably, this was greatly accelerated last year due to the pandemic. Therefore, many companies were forced to do business online, and had to adapt their business model or suffer huge profit losses. ...

Deductions are a huge problem for many businesses. Imagine losing 5-10% of your business to deduction claims. For some companies those deduction costs can run into the millions of dollars. For many years, Cashbook has helped companies set-up deductions on their systems for review and analysis. We auto-generated and auto-coded ...

For manufacturers of consumer goods, deductions are an undesirable but commonplace reality. A CPG (consumer packaged goods) manufacturer sends an invoice to a retailer for $100,000 of goods but yet only receives a cheque for $90,000 in return. Why? The retailer in question has applied “deductions”.

Electronic Data Interchange (EDI) is, fundamentally, the transfer of financial information between businesses. The physical supply chain between buyers and sellers requires a financial supply chain that can capture the complexity of the trading environment. Structure and automation in this process enables vendors, customers and financial institutions to support the physical ...