Emagia’s AI-powered Dispute/Deduction Management Solution provides the much-needed visibility to the accounts receivable (AR) teams and enables them to collaborate with other teams in tracking down the root cause of deductions and disputes. The solution comes with powerful features that automatically activate the appropriate workflow to resolve the dispute.

Why consider Digital Automation for Deductions?

Deductions occur when a customer short pays an invoice. Customers usually take deductions when they feel the amount they are expected to pay is not appropriate. While promotional deductions are authorized in advance, unplanned deductions can significantly impact the bottom-line, erode the gross profit margin, and misrepresent the AR. Hence it is important to clear deductions from the AR ledger on a timely basis. However, processing deductions manually is tedious, error-prone and costly.

AI-powered Digital Automation for Deductions can automate up to 80% of manual deductions processing, including creating and identifying deductions from various customer-provided remittances. It transforms deductions processing from a costly low-value activity to a high-value activity. Using AI-powered digital automation, businesses can gain a consolidated view of deductions from multiple ERPs, eliminate unknown deductions and optimize workflows that provide visibility and automated tracking.

Emagia Advantage in Digital Automation for Deductions

Emagia’s AI-powered Deduction Automation software delivers powerful reporting capabilities on deductions and disputes, helping businesses identify patterns and root causes associated with the issues, leading to resolution.

Emagia’s Deductions Management solution replaces the cumbersome manual matching process. It prioritizes daily task lists and associated workflows to improve the staff’s efficiency while minimizing errors. Leveraging artificial intelligence, the module adopts a proactive approach to managing deductions efficiently. It eliminates gray areas, and creates best practices to evaluate write-off thresholds to help businesses get ahead of the “deductions” curve.

Solution Highlights

Digital Mobile Responsive Credit Applications

Automated Deductions Processing

Auto-identify short pay, over pay with reason codes, auto generate and resolve disputes through workflow

Prepackaged RPA Verification Bots

Dispute Reason Codification

Configurable reason codes based on best practices from across the industry

Integrated Credit Bureaus Reports

Automated workflow approvals

Routing based on dispute reason codes. Graphical workflow process. Audit trails.

Credit Scoring and Auto Decisions Engine

Rules-based Bulk Claims Processing

Auto-approvals based on business decisions

Delegation-of-Authority

Credit/Debit/Write off/Reversal/Rebill

Provide the right outcomes post deductions processing through to ERP system to generate Credit/Debit/Write-off/Reverse/Rebill

Delegation-of-Authority

Digital Assistant to Resolve

Reminders and communication on resolution process

 

Protect Profit Margins with Digital Automation for Deductions

  • Proactive approach to managing deductions
  • Prioritize the assignment of deduction and dispute types
  • Automate up to 80% of the manual work in tracing and resolving deductions
  • Easily identify issues and trends with intelligent data
  • Improve customer experience and loyalty
  • Increase revenue and profits
  • Reduce the Deductions resolution time by over 50%

Customer Success

Best Practices

World-class Order-to-Cash Performance

See how a global medical products supplier reduced the deduction resolution cycle time to 5 days, improved auto-cash hit rates from 50% to 80% while reducing the DSO.

Defend Your Profits with Digital Deductions

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Frequently Asked Questions (FAQs)

Dispute resolution is the process of resolving any issues that a customer raises with respect to the payment of a due. Dispute resolution, also referred to as deductions management, differs from company to company. An efficient deductions management system helps companies resolve customer payment and credit claims in record time, and improve the recovery rate while enhancing customer experience.

A good deductions management software not only decreases the time spent in resolving deductions-related disputes but also frees up the staff for more value-adding asks.

Disputes can be raised against one or more invoices at the line item level if the dispute reason is the same across.
AI-powered digital automation for deductions can automate up to 80% of manual deductions processing, including creating and identifying deductions from various customer provided remittances. It transforms deductions processing from a costly low-value activity to a high-value activity.

Using AI-powered digital automation, businesses can gain a consolidated view of deductions from multiple ERPs, eliminate unknown deductions and optimize workflows that provide visibility and automated tracking.

The deductions management solution can integrate with external sources to aggregate documentation such as Invoice copy, Sales Order Copy, Proof of Delivery, Bill of Lading etc.
Typically there is Credit note, Debit note, Reversal, Rebilling / Write off that are the outcomes of the dispute approval process in Emagia.
Disputes are usually categorized into Pricing, Quality, Delivery (Quantity, Timeliness), Documentation-related etc.
Deductions in accounts receivable usually occur when a customer short-pays an invoice. Customers normally claim deductions when they feel the amount they are expected to pay is not appropriate. While it is important to clear deductions from the AR ledger on a timely basis, processing the deductions manually is not so easy as it is tedious, error-prone and costly.
The deductions management system has configuration to create auto-disputes against short-paid invoices. The deductions management software can route the dispute to appropriate dispute owner for resolution.
Yes, Emagia has a robust workflow module that collaborates with the Disputes module. The approval authority matrix can be configured for the disputes based on parameters such as reason code, amount, line of business, region etc.

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