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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
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, depending
on the industry. Of that number, 5.1 to 10 percent are invalid or unauthorized. In some industries it
can 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.
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.
o Supporting lockbox
o Creating manual claims
o Assigning claim owners
o Setting up aging methods
o Associate promotional accruals
o Creating credit memos
o Applying open credit memos and open overpayments
o Applying write-offs
o Applying chargebacks only for invoice deductions
o Creating invoices.
o Applying open deductions
o Associate promotional accruals
o Creating credit memos
o Applying open credit memos and open overpayments
o Applying write-offs
o Applying chargebacks only for invoice deductions
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 and
settlement task
3.Go to OM ->Deduction & Settlemen
Click on settlement Tab
Approve the claim
Credit Memo created
Claim Status will be changed to settle
Conclusion
Claims 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
