Accounts Receivable (AR) Deductions Document 
Your Virtual Credit Manager
JANUARY 24, 2023
Disputes and Deductions occur when a customer believes an order has not been satisfactorily fulfilled, or it has been invoiced incorrectly. Deductions occur when a customer pays an invoice less than the full amount (short payment) with no intention of ever making up the balance. The good news is your customer has sent you a payment.
Your Virtual Credit Manager
OCTOBER 2, 2024
Accounts Receivable (AR) reflect a promise of payment at a future date. Though a paper asset, AR competes with Property, Plant and Equipment as well as Inventory for being the largest line item on a company’s balance sheet. This will be based on your recent AR Dilution history and historic industry dilution rates.
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Your Virtual Credit Manager
JULY 16, 2024
Once an order has been approved and fulfilled, the primary objective in terms of Accounts Receivable (AR) management is getting paid. Ensure the customer has received ALL the invoices and other documentation requested, and that there are no unresolved disputes or open deductions.
Your Virtual Credit Manager
SEPTEMBER 10, 2024
Specifically, Credit and Collections is responsible for approving new customers for credit terms and managing orders at the beginning of the O2C cycle, while also monitoring risks within the Accounts Receivable (AR) portfolio and collecting overdue payments, both of which are post-sale activities.
Your Virtual Credit Manager
DECEMBER 19, 2023
If you are an executive at a small or mid-sized business, chances are you are in the process of putting together a budget for 2024, or have already done so. Maybe you have factored in an incremental improvement in DSO, but how much thought have you given to how you are going to meet that budgeted goal?
Your Virtual Credit Manager
JANUARY 9, 2024
From a credit management perspective, these are largely reactive topics. In fact, once you decide to sell a customer on open credit, most of the accounts receivable (AR) management tasks that follow have a reactive component. There is nothing wrong with that. In these situations, AI offers great promise as already noted.
Your Virtual Credit Manager
SEPTEMBER 13, 2022
Photo by Jp Valery on Unsplash Payment deductions, also known as chargebacks or short pays, happen when the customer pays less than the full invoice amount. They occur because a customer does not receive your product or service as ordered, or feels the invoice is incorrect. Many firms incur a substantial volume of deductions.
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