Deduction Management Maturity Checklist

Use this checklist to assess the current state of your deduction management program.

Your program may be reactive if:

• Deductions are reviewed only after they age
• Backup is difficult to locate
• Disputes are submitted inconsistently
• Write-offs are high
• Reporting is limited
• Root cause is not tracked
• Portal monitoring is minimal
• Closed deductions are rarely reviewed

Your program may be managed if:

• Deductions are coded and assigned
• Backup is retrieved regularly
• Disputes are submitted within defined timelines
• Aging reports are reviewed
• Recovery activity is tracked
• Some root cause reporting exists
• Processes are documented
• High-dollar deductions receive priority

Your program may be proactive if:

• Pending portal claims are monitored
• Deductions are validated against ERP data
• Dispute packages are standardized
• KPIs are reviewed regularly
• Cross-functional teams review recurring issues
• Root causes drive prevention actions
• SaaS or automation is used where helpful
• Closed deduction reviews are performed periodically

Your program may be optimized if:

• Deduction research is timely and well-controlled
• Portal, ERP, pricing, trade, and shipment data are connected
• Recovery performance is measured consistently
• Prevention actions reduce repeat deductions
• Shared Services teams have specialized support where needed
• Safety Net Reviews identify missed recovery opportunities
• Post-audit claims are validated thoroughly
• Leadership has clear visibility into trends, exposure, and results

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