Bad Debt Deductions Transactions 
Your Virtual Credit Manager
SEPTEMBER 10, 2024
High Deduction Volumes: Consumer goods manufacturers and distributors, and in particular those selling to chain stores, often incur high volumes of payment deductions. Investigating and resolving deductions alone is much too costly. How much time is dedicated to collections versus payment deduction/dispute resolution?
Your Virtual Credit Manager
OCTOBER 2, 2024
Who absorbs any potential bad debt loss — does the lender have recourse to return the AR if they cannot collect it versus a non-recourse arrangement? If you charged shipping costs, but your agreement is to bill a “delivered” price, the customer will deduct the freight from the face amount of the invoice.
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Your Virtual Credit Manager
JANUARY 17, 2023
There was a lot of gnashing of teeth on the part of the sales team at the beginning, but invoice accuracy improved in each subsequent month as sales began transmitting accurate pricing and terms to order processing, thereby reducing downstream disputes and payment deductions. it just might help them pay you sooner!
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. Should you confirm that the customer is indeed correct, the deduction is removed from the Accounts Receivable (AR) ledger via a credit memo. Well, it’s not.
Your Virtual Credit Manager
JANUARY 3, 2023
” This junk AR comes in a variety of forms, such as: Short payment/deductions Debit memos Unapplied credit memos Unapplied cash Late payment fees and other surcharges Early payment discounts taken but not deserved Clutter obscures the true amount a customer owes and causes confusion.
Fundera
FEBRUARY 13, 2017
But while there’s a wealth of information out there about tax deductions for business owners in general, when you run your business out of your home, it can be far more challenging to understand how some of those policies apply. If you or your spouse are 65 years or older, you can deduct expenses that exceed 7.5% Finance Deductions.
Your Virtual Credit Manager
SEPTEMBER 17, 2024
Photo by Willian Cittadin on Unsplash ) Neglecting collections can also lead to longer payment cycles, strained client relationships, and an increase in bad debt. They also kept very good records on their customers and their purchases, so there were no issues with transactional visibility.
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