Channel Revenue Management-Receivable Claim Settlement Process Deductions originally started in consumer goods where powerful retailers would short pay invoices based on their understanding of the trade terms or agreements.This has spread across all industries, and deductions are a common practice not only for collecting promotions, but also for any kind of dispute or misunderstanding, whether it’s a pricing error, transportation related, damages, and so on. This is also the hardest challenge for the receivables departments to resolve because of the need for approval from outside receivables, like sales or shipping. The customer may short pay based on their own policies and procedures. It’s up to you to resolve these claims According to market surveys, deductions can represent 5 to 15 percentage of revenue, dependingon the industry. Of that number, 5.1 to 10 percent are invalid or unauthorized. In some industries itcan be a lot higher.Deductions and Settlement in Channel Revenue Management enables you to take back control,and provides:• Centralized deductions directly from Receivables.• Accurate and fast resolution of customer short pays.• Resolution with accountability and transparency, which enables root cause analyses.• Settlement of deductions in Receivables. How Deductions and Settlement Works When a customer short pays you, the flow is:1. Receive a short pay from a customer, including from the Receivables lockbox.2. Create a claim from Receivables for the short pay difference within the receipt.3. Assign ownership of the claim.4. Research and resolve deductions quickly and accurately.5. Settle the claim. With Deductions and Settlement, you can: Centralize deductions and overpayments, with accountability and aging by: o Supporting lockboxo Creating manual claimso Assigning claim ownerso Setting up aging methods Resolve deductions by: o Associate promotional accrualso Creating credit memoso Applying open credit memos and open overpaymentso Applying write-offso Applying chargebacks only for invoice deductions Resolve overpayments by: o Creating invoices.o Applying open deductions Resolve deductions by: o Associate promotional accrualso Creating credit memoso Applying open credit memos and open overpaymentso Applying write-offso Applying chargebacks only for invoice deductions Approve your claims. Schedule the Settle Customer Claims process periodically to settle the claims in Receivables in a ready-to-use and tightly integrated manner. The settlement details are brought back to Channel Revenue Management to complete the flow Analyze the root causes behind deductions, with the help of claim types and claim reasons assigned while resolving the claim. Proactively analyze write-off thresholds through occasional review of claim write-offs. DEMO Underpayment: Invoice of 1000$ and Receipt is 900$ 1.Create Invoice 2.Create Receipt of 900 $ Save the receipt and deduction number will be created. Then check in to deduction andsettlement task 3.Go to OM ->Deduction & Settlemen Click on settlement Tab   Approve the claim   Credit Memo created Claim Status will be changed to settle ConclusionClaims in Oracle Channel Revenue Management enables organizations to shorten the claimsprocessing cycle and reduce claims and the associated costs. Information related to all the claims is stored in a centralized manner. This makes it possible for you to access accurate views of promotional spending and other variable costs. You can research, validate, and settle deductions, charge backs, and claims. You can also identify invalid and duplicate claims and prevent unauthorized claims and deductions. For free consultations please contact     www.cloudannotation.com