How can I justify the need to purchase deduction management
software? It is expensive, but less than the cost of managing the deduction
process manually and writing off the deductions that slip through the
cracks.
Answer: You can document
how much time your department spends managing deductions. Many companies
spend as much time researching and resolving deductions than they do
collecting past due invoices even though outstanding deductions are only
a fraction of the dollar value of open invoices. You can also document
the fact that deduction resolution is labor intensive and time consuming.
It takes time away from risk management and from collection. You can
explain that open deductions provide excuses for customers to delay payment.
You can point out that customer goodwill could be damaged if internal
problems that result in errors, which in turn result customer deductions,
are not resolved promptly. |