QAD EE Financial Functionality: Deduction Management
Posted on: March 31, 2018 | By: Andy Vitullo | QAD Financials
Accounts Receivable Deduction Management Software functionality is included with the QAD Enterprise Financials. This software tool will allow your AR Team to properly manage customer deductions on their payment remittances to your business.
What is a Deduction?
Customer Payment Deductions occur when the customer reduces a total payment to your business. This negative payment amount is represented on the remittance along with a document number. These document numbers are likely document reference numbers in your customer system.
Businesswise, these negative payments represent concessions made to a customer that have not been documented in your Accounts Receivable ledger.
QAD Deduction Management will allow your business to track these deductions, assign reason codes and determine the validity of the deduction. Disposition of these deductions will typically result in a permanent classification of reason, a determination that the deduction was valid or a determination that the deduction was not valid and therefore, requires collection.