Deductions Management Maturity Model: How to Optimize Your Process

According to the Customer Deduction Survey, 43% of B2B companies report no time limit for deduction aging. These aged, unresolved disputes ranged from one month to a couple of years old. The main reason behind this came out to be a lack of account prioritization. Credit Managers failing to manage disputes are jeopardizing their company's bottom line.

The survey highlighted the challenge faced by companies resolving deductions. Credit managers were either chasing valid deduction accounts or were unable to prioritize invalid accounts better. This led to more bad debt write-offs that further resulted in profit leakage of their company.

As a credit manager, how would you ensure that your deductions management process is more efficient and optimized? highako.com offers a course on the Deductions Management maturity Model that aims at reducing bad-debt write-offs.

Jessica Butler, the founder of Attain Consulting Group, tried to understand what is holding companies back from continuous process improvement. Her study said that the reason could be limited accountability and lack of visibility of reasons for deductions. In this tutorial, Jessica will help you to understand how to implement a reasonable timeframe for the deductions to remain open and optimize your deductions management process. Leverage this model to become more proactive about recovering debts lost to invalid deductions.