deductions
There are 6 entries for the tag
deductions
By Tom Tipps
Here we are in 2011…and most Foodservice manufacturers are still settling all or most of their claims via distributor deduction. The manufacturers can’t process the distributors’ claims within payment terms, so the distributors just deduct.
So, what’s wrong with that? Here’s a two-part answer…
1. If the manufacturer is actually auditing every line item on the deduction against their contract and issuing a rebill invoice for invalid deductions…that’s okay from an audit perspective.
2. But, if the manufacturer is just issuing debit memos without audit…the distributor has taken ownership of the payment decision. The auditors will love this!...
by Tracy McQuilkin
Deductions are something every manufacturer we work with does differently. It seems no one has found the perfect way to handle deductions that is consistent across all companies.
We recently had a deep dive with a client’s deduction team. Most of the confusion was related to terminology and lack of understanding of what it takes to clear a deduction. Job shadowing was suggested to help with this client.
How do you handle deductions? What makes it so hard with your organization? We'd love to hear your feedback - click here to let us know what is working (or...
When Foodservice manufacturers first join our ContractPro® Community, they are typically settling a huge number of claims via distributor deduction. The manufacturer cannot process the distributors’ claims within payment terms, so the distributors just deduct.
In other words, the manufacturers are allowing their distributors to deduct claims from invoice payments…in essence, allowing the distributor to make the audit and payment decision. Bet the auditors love that!
Posted by Stacy Jackson
Over the years we have learned a lot about what happens in the first 90 days or so after a manufacturer implements a new contract management system. We call it the pain curve. Excitement and expectations for the new system turn into angst over errors that seem to be piling up in the way of pendings, recalculated claims, and deductions. Things improve, though, after a little work. The pain subsides and turns into confidence in the new system - deductions are down (o
Posted by Tracy McQuilkin
A deduction in the Answers Systems trade promotion management solution is simply a status type for a completed claim. Whether we cut a check or a deduction occurs, we still fully validate the claim against the contract stored in the ContractPro® application.
Posted by Stacy Jackson
Last week I posted on the topic of Breaking Down TPM Critical Steps - Standardization & Rules of Engagement, based on the webinar series from Foodservice University and Answers Systems. As promised, here is some information about Back-Office Procedures to employ once you have gone about the process of standardizing your trade promotion management process and defining rules of engagement.