Deductions are a business reality. The question is how organizations are able to best manage deductions. Best practices for deduction management do exist, and when paired with current, best-in-class technology, will mitigate the impact of deductions, optimize processes, compress cycle-time and reduce revenue leakage. Preventable deductions should be addressed by ensuring that purchase orders, contract agreements, authorized discounts, sales tax exemption certificates and shipping instructions reconcile with the sales order, shipment and invoice detail. Though credit and collections has the largest share in identifying and managing deductions they require the knowledge and authority of other departments to clear the deduction. Don't waste time researching small dollar short-pay deductions. Validate and clear planned deductions with an adjustment or credit during cash application. Classify the dispute type and leverage technology to prioritize the case with best path workflow. As a best practice, technology should be utilized to convert the volumes of transactional data into meaningful business intelligence.