Deduction Management Checklist

Strong deduction programs rely on disciplined routines. While responsibilities may vary by organization, the following activities provide a practical framework for managing deductions, accelerating recovery, and identifying opportunities for prevention.

• Review new deductions
• Monitor pending claims in portals
• Code and classify new activity
• Retrieve available backup
• Prioritize high-dollar deductions
• Identify time-sensitive claims
• Assign research ownership
• Validate against internal records
• Prepare dispute packages
• Submit disputes
• Track customer responses
• Follow up on open disputes

• Review open deduction aging
• Analyze recovery activity
• Review dispute denials
• Identify top deduction customers
• Identify top deduction categories
• Review pending claim trends
• Review aged unresolved claims
• Escalate high-dollar items
• Share trends with cross-functional teams
• Update root cause reporting
• Review write-off activity

• Conduct root cause review
• Review compliance trends
• Update customer-specific requirements
• Evaluate dispute success rates
• Review staffing and workload
• Assess automation opportunities
• Identify process gaps
• Share prevention recommendations
• Review recovery performance against goals
• Consider closed deduction or Safety Net Review opportunities

IAB Insight: Deduction recovery is often won or lost through process discipline.

Organizations that consistently review new deductions, follow up on disputes, monitor aging, and escalate issues before deadlines are typically more successful than those that focus only on large individual claims. Consistent execution helps prevent recoverable deductions from turning into avoidable write-offs.

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