Gain Control of Unresolved A/R Documents or Accounts with the Deduction Management Component

  • by Keith Hibbitts, SAP Platinum Consultant
  • January 15, 2002
The Deduction Management Component is a "bolt on" product provided by SAP's Global Solution Center to enhance the functionality of the SAP R/3 Accounts Receivable module. This article describes how A/R and Credit groups, when faced with customers who do not pay their Total Amount Due, can gain control of complex resolution issues by using the Deduction Management Component to track short or partial payments and to document what actions have been and are being taken.

Trying to manage Accounts Receivable balances in R/3 can often be a rather difficult task, particularly when customers don’t pay their Total Amount Due. Let’s face it. Not too many of us are blessed with customers who always pay all of what they’re supposed to (e.g., what they actually owe) as opposed to what they think they should pay.

So, A/R and Credit groups need a way of tracking short or partial payments, and documenting what actions have been and are being taken.

To help you gain control of complex resolution issues, SAP’s Global Solution Center provides a targeted product called the Deduction Management Component. This product is a "bolt on" component that enhances the functionality of the SAP R/3 Accounts Receivable module.

Keith Hibbitts

Keith Hibbitts is an SAP Platinum Consultant based in SAP’s Dallas, Texas office specializing in the Financial and Controlling modules of SAP R/3, as well as Business Warehouse (BW) and Strategic Enterprise Management (SEM). He has been with SAP America, Inc. since April, 1996. He has an undergraduate degree in Accounting from the Texas A&M University — Corpus Christi in Corpus Christi, Texas, and a master’s degree in Business Administration from the Cox School of Business at Southern Methodist University in Dallas, Texas.

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