In high-volume accounting applications, there may be a veritable flood of payment deductions arriving from customers. The usual approach to handling deductions is to consolidate them by customer, so that one collections person handles all deduction requests. However, when there are a large number of deduction types, or when deductions are highly complex, then consider routing them to a subject matter expert (SME). Each SME specializes in a small number of deduction types, and so can achieve a high level of efficiency, while also minimizing deductions.
To create a deduction SME system, code all customer deductions by type, and use a workflow management system to route the deductions to the appropriate SME. Also, track the time taken by each SME to resolve deductions, and also track changes in the deduction levels before and after implementing a SME system. These metrics allow managers to see if this level of specialization is improving the company's ability to handle specific types of deductions.
There are several downsides to using a SME system. First, several SMEs may be involved with deductions taken by a single customer, so the customer may be on the receiving end of multiple contacts by different employees, which can be confusing. Also, if a SME leaves the company, a great deal of very specialized deduction knowledge may be lost, so periodically interview them in order to update the deduction management procedures related to their work.
The best way to enter into a SME arrangement is to first assign the best deduction management person to the most complex deduction problem, as a pilot test. Then, if the approach works, gradually roll out the system for additional deductions, and stop when there is no longer any efficiency to be gained by creating specialists for easier or lower-volume deduction types.