In today’s environment, every dollar matters. Yet many CPG manufacturers overlook a valuable source of potential revenue: deductions that have already been written off, closed, or deemed unrecoverable.
As companies look for ways to maximize profitability without adding headcount or changing existing processes, more are taking a second look at their historical deductions.
What Is a Closed Deduction Review?
A closed deduction review is a detailed analysis of deductions that have already been investigated, resolved, written off, or otherwise considered closed.
Unlike traditional deduction management, which focuses on open disputes, a closed review takes a second look at historical deductions that may not have been fully pursued due to high claim volumes, competing priorities, or limited resources.
By providing an independent review of previously closed claims, companies can uncover recoverable revenue that might otherwise remain uncollected.
How Does a Closed Deduction Review Work?
A closed deduction review is designed to work alongside your existing deduction management strategy, regardless of whether deductions are handled internally or by a third-party provider. A typical review includes the following steps:
- Historical Deduction Analysis
The process begins with a review of historical deduction data. Previously closed deductions are evaluated to identify opportunities that may still have recovery potential.
- Claim Pursuit & Recovery
Once viable opportunities are identified, supporting documentation is gathered, and claims are pursued through the appropriate retailer channels. This process is managed on the client’s behalf, minimizing the burden on internal teams.
- Incremental Revenue Recovery
As claims are successfully resolved, recovered funds are returned to the client. Recovery results are tracked and reported throughout the review process.
Why Are More CPG Companies Using Closed Reviews?
As companies look for ways to improve profitability, many are recognizing that closed deductions represent one of the most overlooked recovery opportunities within their organizations. A closed deduction review can create value in a number of ways, including:
Recover More Without Adding Headcount
Finance, accounts receivable, and deduction teams are often operating at full capacity. A closed review allows companies to pursue additional recoveries without increasing internal workload, adding headcount, or changing existing processes.
Gain a Fresh Perspective
Whether deductions are managed internally or outsourced, every process is subject to resource limitations and competing priorities. A second review performed by specialists focused exclusively on closed deductions can uncover claims that were not prioritized during the original review.
Minimize Financial Risk
Because closed deduction reviews are often performed on a contingency basis, companies typically pay only on successful recoveries. This allows organizations to explore additional recovery opportunities with little to no upfront investment.
Recover Revenue Already Earned
Increasing profitability often requires reducing costs or driving incremental sales. A closed deduction review offers another path: recovering money that has already been earned but never collected.
How IAB Solutions Can Help
At IAB Solutions, we help CPG manufacturers maximize deduction recoveries through comprehensive closed deduction reviews. Our team works alongside your existing deduction management process, whether deductions are handled internally or by another provider, to identify overlooked recovery opportunities and pursue valid claims.
Because our reviews are designed to complement, not replace, existing efforts, clients can uncover incremental revenue with no disruption to their day-to-day operations. In many cases, deductions that were previously written off or considered resolved still contain meaningful recovery potential.
If your organization has never conducted a closed deduction review, you may be leaving recoverable dollars on the table. IAB Solutions can help you find out.
