BPO Deductions Management
Deductions are when a recipient of goods reduces the invoice for items such as damaged goods, returned product or takes credits for advertising, discounts, etc. Deductions management is the process of reconciling these deductions against agreements and documentation for allowable or authorized deductions.
What We Do
Identifying unauthorized deductions — RMS determines the type of deductions and the reason for it. Our highly trained staff then determines if it is authorized or unauthorized. Type of deductions can include:
- Proof of delivery, freight charges or returned merchandise
- Pricing, price protection/markdown, co-op advertising, shelf placement
- Unearned cash discounts, rebates, allowances
- Vendor compliance issues
Resolution
When applicable, RMS resolves the deductions via payment, credits or adjustments. You are kept informed throughout the process by timely communication, documentation and reporting.
Deductions Management
Companies realize the following benefits:
- Bad debt reduction
- Increased recoveries
- A dedicated team of reconciliation professionals
- Root cause analysis to minimize future unauthorized deductions
- Minimized burden on your accounts receivable and credit department
- Detailed reporting of deductions by type and customer
- Sensitivity to maintaining the customer relationship
