Deductions survey focused on metrics

Welcome to The Credit Research Foundation Survey

2023 Customer Deduction Benchmark Survey and Survey Worksheet

Thanks in advance for taking your valuable time to complete the first in a series of surveys to benchmark what’s happening in the deductions area. Our goal is to shed light on what is causing the spike in activity and provide insight and solutions for you and your team.

This endeavor is hosted by CRF with the support of experts in the deduction field:

Attain Consulting Group -- Carixa -- IAB Solutions -- RVCF

We are breaking up the data gathering into multiple surveys to minimize the time needed for completion. This first one is focused on deduction metrics. This worksheet is provided to help you gather data needed to complete the survey.

Aggregated results will be presented in the 4th quarter to those who complete the surveys and provide contact information.

NOTE: You may receive this survey more than once, since the companies listed above will be circulating this to their respective contact lists. PLEASE COMPLETE ONLY ONCE.

The following information is needed to complete the 2023 Customer Deduction – Metrics Benchmark Survey. Gathering this data prior to logging into the online survey will speed completion time.

1. Annual Gross Sales for most recent calendar or fiscal year (or any 12-month period)

2. Auto write-off tolerance amount

3. % of total deduction dollars automatically written-off based on tolerance

4. % of total deduction dollars that are invalid or disallowed and charged back to the customer

5. % of invalid or disallowed deduction dollars that are recovered / reversed

6. Deduction dollars as % of total AR

7. Open deduction dollars > 90 days old

8. Non trade-related deduction dollars as % of sales (non trade-related deductions includes compliance and shortage deductions: excludes returns, unsaleables and trade-related deductions, such as promotions, advertising, allowances, markdowns)

9. Days Deductions Outstanding (DDO) calculated as Average Open Deduction dollars / (Annual Deduction dollars created / 360)

10. Deduction dollars taken as a % of sales most recent calendar or fiscal year and prior calendar or fiscal year

11. Name of ERP (AR) system(s)

Thanks again for your engagement with this project!