Customer Deduction and Settlement Management Using Oracle Receivables and Channel Revenue Management at a Food Packaging company

Аннотация

Mass production and distribution companies face multifaceted challenges in managing customer deductions, promotional rebates, and trade settlement processes. Fragmented and manual deduction workflows have contributed to revenue leakage, aging receivables, and delays in cash application. This paper explores the implementation of Oracle Channel Revenue Management (ChRM) integrated with Oracle Receivables to create a streamlined, automated solution for end-to-end deduction processing, from claim initiation through settlement and accounting. Drawing upon the case of a food packing company’s U.S. operations, the study highlights how a rules-based, system-driven approach enhanced accuracy and control. Notably, the company achieved a 90% reduction in manual write-offs and shortened average claim resolution time from 21 days to 8 days. The integrated model not only minimized manual intervention but also improved transparency, strengthened financial compliance, and enhanced working capital efficiency. These results affirm that Oracle ChRM, when deployed strategically, can transform deduction management into a driver of operational and financial excellence.

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Sachin Sardana. (2025). Customer Deduction and Settlement Management Using Oracle Receivables and Channel Revenue Management at a Food Packaging company. Международный журнал по науке о данных и машинному обучению, 5(02), 66–78. извлечено от https://www.inlibrary.uz/index.php/ijdsml/article/view/133743
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Аннотация

Mass production and distribution companies face multifaceted challenges in managing customer deductions, promotional rebates, and trade settlement processes. Fragmented and manual deduction workflows have contributed to revenue leakage, aging receivables, and delays in cash application. This paper explores the implementation of Oracle Channel Revenue Management (ChRM) integrated with Oracle Receivables to create a streamlined, automated solution for end-to-end deduction processing, from claim initiation through settlement and accounting. Drawing upon the case of a food packing company’s U.S. operations, the study highlights how a rules-based, system-driven approach enhanced accuracy and control. Notably, the company achieved a 90% reduction in manual write-offs and shortened average claim resolution time from 21 days to 8 days. The integrated model not only minimized manual intervention but also improved transparency, strengthened financial compliance, and enhanced working capital efficiency. These results affirm that Oracle ChRM, when deployed strategically, can transform deduction management into a driver of operational and financial excellence.


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INTERNATIONAL JOURNAL OF DATA SCIENCE AND MACHINE LEARNING (ISSN: 2692-5141)

Volume 05, Issue 02, 2025, pages 66-78

Published Date: - 12-08-2025

Doi: -

https://doi.org/10.55640/ijdsml-05-02-06


Customer Deduction and Settlement Management Using Oracle

Receivables and Channel Revenue Management at a Food

Packaging company

Sachin Sardana

Oracle ERP Cloud Solution Architect , USA

Abstract

Mass production and distribution companies face multifaceted challenges in managing customer deductions,
promotional rebates, and trade settlement processes. Fragmented and manual deduction workflows have
contributed to revenue leakage, aging receivables, and delays in cash application. This paper explores the
implementation of Oracle Channel Revenue Management (ChRM) integrated with Oracle Receivables to create a
streamlined, automated solution for end-to-end deduction processing, from claim initiation through settlement and
accounting. Drawing upon the case of

a food packing company’s

U.S. operations, the study highlights how a rules-

based, system-driven approach enhanced accuracy and control. Notably, the company achieved a 90% reduction in
manual write-offs and shortened average claim resolution time from 21 days to 8 days. The integrated model not
only minimized manual intervention but also improved transparency, strengthened financial compliance, and
enhanced working capital efficiency. These results affirm that Oracle ChRM, when deployed strategically, can
transform deduction management into a driver of operational and financial excellence.

Key words

:

Oracle Receivables, Channel Revenue Management, Customer Deduction Management, Trade

Promotion Settlements, Claims Processing, Revenue Leakage, Dispute Management, ERP Cloud, Food Packaging.

1. Introduction

The complexities of customer trade agreements, extensive promotional activities, and high sales volumes in the
food production and consumer packaging industry result in a high incidence of customer deductions. These
deductions often arise from short payments on invoices due to returns, damaged goods, early payment discounts,
off-invoice promotions, or other disputed claims. Beyond ensuring customer satisfaction, accurately and efficiently
managing these deductions is critical for safeguarding revenue and maintaining financial integrity.

This company, a leading North American packaging provider, faced mounting global competition and internal
inefficiencies in deduction processing despite having Oracle ERP Cloud in place. While the order-to-cash cycle had
been automated to an extent, deduction management remained fragmented and semi-manual. Sales teams
maintained offline records of promotions, while finance teams struggled with validating and settling deductions,
leading to delayed reconciliations, cash flow disruptions, and limited audit transparency.


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To address these challenges, company integrated Oracle Receivables with Oracle Channel Revenue Management
(ChRM), achieving a transformative shift in how deductions were managed. This paper outlines that transformation
by first reviewing relevant literature and industry insights. It then details the business challenges faced, the Oracle
solution architecture, and a case study of the implementation at the company. Subsequent sections cover
integration strategies, scalability, strategic benefits, and implementation limitations. The paper concludes with a
discussion on future outlooks and the long-term value of this integrated solution.

2. Literature Review

The issue of unstructured customer deduction management has been extensively acknowledged across retail,
manufacturing, and distribution sectors. Scholars such as Borthick and Pennington [1] have noted that ineffective
handling of receivables-related disputes contributes to systemic revenue exposure and extended Days Sales
Outstanding (DSO). While automation and cross-functional transparency have been recognized as enablers of
efficiency, many organizations still rely on fragmented processes or semi-manual tools.

Oracle’s Channel Revenue Management (ChRM) has been promoted through vendor documentation as a

centralized platform to manage trade claims, deductions, and accruals against contractual terms [3,4]. It integrates
with Oracle Receivables to automate claim creation, link deductions to trade promotions, and initiate systematic

investigation and settlement. However, while vendor literature emphasizes the platform’s configurability and

control, there is a noticeable scarcity of independent, peer-reviewed studies validating Oracle ChRM's comparative
advantage over alternative solutions.

Studies such as those by Wong and Venkataraman [2] argue in favor of rule-based automation for deduction
management, particularly in high-volume environments. They emphasize the need for validations linked to
promotional reasoning and audit-readiness. Yet, their evaluations are largely conceptual and do not offer empirical
comparisons of different ERP or claims management tools.

Third-

party industry research highlights several competing technologies, including SAP’s Trade Promotion

Management, Vistex, and Blacksmith Applications, which offer similar functionality for claim validation and
settlement. A recent Deloitte report [9] points out that many companies face integration hurdles, especially when
trade promotion systems are not natively connected to receivables platforms. Meanwhile, PwC [10] and KPMG [11]
emphasize the importance of predictive analytics and exception-based processing but also note a lack of end-to-
end traceability in many existing solutions.

The existing div of literature, while informative, is fragmented and skewed toward vendor-aligned narratives.
There is limited critical evaluation of how ERP-native deduction management modules compare to best-of-breed
or bolt-on solutions in areas such as scalability, compliance, or operational transparency. Furthermore, academic
publications often lag behind evolving enterprise technology landscapes, leaving a gap between theoretical
recommendations and real-world implementation dynamics.

At company

, these gaps became tangible. The company’s experience confirmed that despite general awareness of

deduction-related issues, practical guidance on how to operationalize a compliant, scalable, and integrated solution
remained scarce. The Oracle ERP Cloud provided the flexibility and native integration capabilities to close this gap,
but its effectiveness was realized only through empirical design, custom configuration, and rigorous testing

areas

where literature guidance was minimal. This underscores the need for more balanced, peer-reviewed research that
evaluates multiple platforms and contextualizes deduction automation within broader digital finance strategies.

3. Business Challenges in Deduction and Settlement

The company retails to diverse customer segments which include foodservice chains, retailers, and distributors.


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Each customer segment is governed by its own group of commercial agreements with complicated trade terms,
rebates, billbacks, returns, and incentive-based pricing. In the long term, these disparate agreements led to high
volumes of deductions taken by customers at the time of invoice payment with either vague references or no
documentation.

Prior to on-boarding Oracle Channel Revenue Management [3], the company faced the following systemic
challenges:

Fragmented Claims Visibility: Sales organizations initiated promotions and rebate programs in offline
spreadsheets. When deductions appeared in Accounts Receivable in the form of short-pays, finance did
not have enough context to validate claims against agreed-upon terms.

Manual Dispute Handling: Each disputed transaction required ample back-and-forth between
departments, taking extensive cycle times to resolve and risking customer dissatisfaction.

Revenue Leakage: Without systematic claim validation, some invalid deductions were written off, which
were not detected as revenue losses.

Inefficient Cash Application: Receivables teams could not auto-apply payments or generate settlement
entries due to the lack of deduction linkage. Open receivables aging remained overstated and inaccurate.

Audit and Compliance Risks: Deduction adjustments often bypassed standard approval workflows or were
supported by weak documentation, which increased risk during internal and external audits.

These issues not only prolonged the monthly close process but also strained customer relationships. The sales and
finance stakeholders realized the need for an integrated, traceable, and rules-based end-to-end deduction and
settlement management system. The ultimate goal was to create a closed-loop solution, from trade agreement
creation all the way through deduction settlement and accounting. Figure 1 shows the different types of deductions
processed by Oracle ChRM

Figure1:

Categorization of deductions


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4. Oracle ChRM and Receivables Functional Overview

Oracle Channel Revenue Management [3] (ChRM) and Receivables is designed to operate as an integrated, end-to-
end platform that automates and tracks every step in the deduction life cycle[6]

from setting up trade agreements

to settling funds. Its modular yet unified architecture enables companies to handle both ad-hoc and pre-authorized
deductions cost-effectively in a systematic and traceable manner.

Key Functional Capabilities

Trade Agreements and Accruals: ChRM allows users to configure promotion programs and terms of trade
that build accruals at the time of the sales transaction. The accruals are maintained in customer-specific
budgets, ready for claim validation.

Sales Integration[12]: When a transaction under a trade agreement is booked and shipped, Oracle ChRM
captures the eligible accrual in real-time. This information becomes critical to match deductions against
anticipated promotional behavior.

Claims Investigation: When customers short-pay an invoice by deducting, Receivables indicates the variance
as an unapplied amount. ChRM also enables users to create a claim, link it with a promotion or sales return,
and initiate investigation. Claim types can be assigned (e.g., pricing errors, returns, billbacks) in order to
apply control and categorize financial effect.

Approval Flows: Claims are routed to predefined approval hierarchies for verification that finance and sales
management validate the validity of deductions. Approvals are based on thresholds, claim types, or
strategic customer designations.

Settlement Workbench: The claim may be settled upon approval through Oracle Receivables by means of
system-generated credit memos, write-offs, or application against on-account receipts[6]. This is all done
in conjunction with updating the receivables aging, with automatic posting of the journals and without
manual accounting entries. The figure2 shows the integration between Oracle ChRM and other modules to
process deductions and their settlements.


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Figure 2:

Oracle ChRM and Receivables Integration for Deduction Settlement[12]

Such closed-loop design allowed Huhtamaki to move away from reactive deduction management[4] towards
proactive management. Each claim became traceable back to the original trade agreement, and each financial
settlement entry became system-driven and audit-ready. User-defined claim type management, mapping to GL
accounts, and automatic settlement transactional posting significantly reduced manual touch and provided
business unit consistency.

Such closed-loop design allowed the company to move away from reactive deduction management[4] towards
proactive management. Each claim became traceable back to the original trade agreement, and each financial
settlement entry became system-driven and audit-ready. User-defined claim type management, mapping to GL
accounts, and automatic settlement transactional posting significantly reduced manual touch and provided
business unit consistency.

5. Case Study: Implementation of Oracle ChRM and Receivables at a Food Packaging company

The company, a global leader in packaging solutions with a significant presence in North America, aimed to overhaul


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its fragmented deduction management practices by implementing Oracle Channel Revenue Management (ChRM)
and Oracle Receivables. The initiative sought to address systemic inefficiencies, minimize revenue leakage, and
establish an integrated framework for claims validation and settlement. To ensure reproducibility and clarity for
future implementations, company adopted a four-phase framework that can serve as a formalized model for other
enterprises pursuing similar transformation initiatives.

5.1 Methodological Framework for Implementation

The project was structured around the following framework:

In the Diagnostic and Design phase, a cross-functional team conducted an enterprise-wide diagnostic to map
current-state deduction workflows and identify root causes of operational inefficiencies. Metrics such as claim
resolution cycle times, write-off volumes, and receivables aging were benchmarked. Over 40% of customer short-
pays were outstanding for more than 60 days, highlighting the need for a systemic intervention. Deduction
categories such as price protection, co-op advertising, and freight disputes were codified and mapped to respective
General Ledger (GL) accounts.

During the Configuration and Prototyping phase, Oracle ChRM modules were configured in the ERP Cloud
environment. Key configurations included the definition of claim types and reason codes, creation of trade profiles
and promotion budgets, setup of multi-level approval workflows via Oracle Workflow Builder, and integration
mappings between Receivables, ChRM, and the GL. A sandbox environment was used for prototyping and user
testing, allowing refinement of approval matrices, journal configurations, and exception-handling logic.

In the Data Migration and Pilot Execution phase, historical data was loaded into ChRM to simulate claims processing
based on the prior fiscal year. A pilot involving a select group of foodservice distributors was launched to validate
system behavior under real-world scenarios. Over 300 deductions were processed in the pilot, with 70% auto-
approved through predefined rules and the remaining claims successfully resolved through workflow-based
approvals.

The final Rollout, Governance, and Continuous Improvement phase began with deployment across all U.S. business
units. Key performance indicators such as average claim resolution time, aging reconciliation rate, and manual
journal volumes were tracked weekly. A Center of Excellence (CoE) was established to provide governance, user
training, and support for iterative enhancements.

5.2 Implementation Outcomes

Post-implementation, company realized transformative gains. The average claim resolution time reduced from 21
days to 8 days. Additionally, 95% of deductions were reconciled to valid claims within three business days, and
manual write-offs were reduced by 90%. The seamless integration across Finance, Sales, and IT enhanced
transparency and compliance significantly.

5.3 Visual Summary: Implementation Framework

The company case shows how Oracle ChRM, when effectively implemented and adopted, transforms the typical
back-office deduction process into a strategic tool. The next section describes how the system makes it easy for an
enterprise to scale and integrate. Figure 3 below presents a schematic overview of company

’s four

-phase Oracle

ChRM implementation model.


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Figure3

: Oracle ChRM implementation Framework

6. Integration and Scalability

One of the key success factors in company's use of Oracle Channel Revenue Management [3] (ChRM) was how
seamlessly it dovetailed with Oracle ERP Cloud and how it could scale its architecture to accommodate global
operations. Considering the company's decentralized systems environment and heavy transaction volumes, the
implementation team focused on designing a system that would enable ChRM to operate as a centralized deduction
processing engine while being able to integrate well with diverse operating and financial subsystems. ChRM was
integrated natively into Oracle Receivables so that automatic creation of deduction claims could be triggered when
a short-payment had been recorded on a customer invoice. These deductions were automatically determined in
Receivables and routed to ChRM's Claim Investigation module. There, users would examine and settle the claim
with proper authorization. With approval, ChRM issued the respective credit memo or write-off, automatically
posting to the customer account and the General Ledger. The end-to-end process eliminated manual interventions
and ensured deductions were well accounted for, tracked, and audited.

To further enhance accounting accuracy, the company established Oracle Subledger Accounting [5] (SLA) rules to
govern the manner in which each claim category impacted the books. Each of the deduction categories

returns,

price variances, or co-op marketing contributions

were equated to a precise accounting treatment, postings made

either to contra-revenue, marketing expense, or promotional accrual accounts. This configurability provided a high
degree of granularity and ensured alignment with company

’s broade

r revenue recognition and financial reporting

frameworks under U.S. GAAP[7]. In addition to integrating ChRM with Oracle ERP Cloud, the company adopted a
source-agnostic architecture that allowed data ingestion from legacy systems and third-party platforms in regions
outside North America. By using Oracle Integration Cloud (OIC), the company developed API and flat file adapters
that enabled external systems to send in sales data, trade agreements, and short-pay notification into ChRM. This
kept the deduction management process centralized and consistent even when transactional data was coming from
disparate order management systems[9]. Scalability was a deliberate design consideration. The company created
its ChRM design in a modular style so that it would be possible to grow into new business segments or geographies
in the future without need for redesigning the solution. Types of claims and reason codes were globalized, but
configured to facilitate regional variation where needed. Approval processes were parameterized to allow multiple


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escalation paths based on geography, customer category, or monetary amounts. Similarly, budget structures were
made flexible to support different types of cost centers, fiscal cycles, and promotion fund types across business
units.

This elastic architecture was a matter of shortly after go-live testing when company deployed the solution to
Canadian businesses. There was seamless and rapid migration with duplication of basic configurations only,
localization of workflows, and expansion of integration endpoints. Within a ten-business-day window of
configuration, Canadian organizations went live on ChRM and processing deductions within the consolidated
framework. Operationally, the company was benefited by such aspects as multi-currency functionality, tax and
compliance reporting localizability, and real-time dashboards for monitoring deduction activity and approval cycles.
These aspects enabled the company to handle deductions globally while retaining control and flexibility required
for business in the local markets.

Separating integration logic from operational dependencies and harmonizing the system into a scalable governance
pattern, the company established a sound foundation for international deduction management. Oracle ChRM
enabled finance and operations experts to have visibility in real time, maintain compliance, and expand with
confidence without duplicating systems and processes.

7. Strategic Benefits of Oracle ChRM for Deduction Management

Figure 4

: Improvements post Oracle ChRM implementation

The implementation of Oracle Channel Revenue Management [3] at the company brought strategic value that
extended far beyond automation and operational efficiency. The solution transformed deduction management into
a streamlined, controlled, and value-driving process with far-reaching implications for financial performance,
compliance position, and cross-functional alignment from a fragmented, manual, and too often reactive function.

One of the most pronounced outcomes was the protection of revenue through the prevention of unauthorized or
invalid deductions. In the previous system, deductions were written off due to the absence of documentation or
visibility into the trade agreements involved. With the system now validating claims against pre-approved


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promotional terms and budget limits, the company experienced a radical reduction in revenue leakage. Claims that
previously passed unchecked were now flagged, examined, and settled or denied based on systematic rules. The
firm reduced discretionary write-offs by 90% within three months of deployment, drastically improving revenue
integrity.

Financial accuracy and auditability were also improved significantly. Each claim processed through Oracle ChRM
generated a journal entry that was automatically linked to the correct general ledger accounts, based on the claim
type and underlying trade agreement. Subledger Accounting [5] configurations ensured that returns, pricing
disputes, and marketing programs were all tracked separately in accordance with the company

’s revenue

recognition policies. The resulting audit trail allowed internal and external auditors to trace financial impacts
through to individual claims, with greater visibility and shorter audit cycles.

A second strategic advantage was improvement in working capital and cash flow management. Automation of
deduction processing allowed for faster application of payments and closure of open items. The company had
experienced aging unapplied cash due to short-pays without documentation. After go-live, over 95% of deductions
were matched to valid claims and applied within three business days, improving not only Days Sales Outstanding
(DSO) metrics but also providing improved visibility of cash position for treasury operations.

The ChRM implementation also improved the alignment between the sales and finance functions. Previously, the
absence of integration between trade agreement creation and deduction resolution created internal tension. With
ChRM, both departments were now on the same page. The sales forces could view claims that had been initiated
by their clients and check them against promotional terms, while finance had the ability to impose financial controls
without damaging customer relationships. The alignment improved cooperation, reduced internal disputes, and
assisted in the delivery of an improved customer experience through single and consistent communication.

Finally, the solution positioned company for long-term expansion and strategic agility. Its ability to bring new
entities on board quickly, localize business rules, and adapt to changing regulatory requirements makes it a scalable
platform for global deduction management. The fact that it was implemented with real-time dashboard and
exception monitoring tools also gave leadership real-time insight into operational risks and opportunities and
allowed them to take prompt action and refine policies continuously.

In effect, Oracle ChRM evolved from a trade dispute handling tool to a strategic enabler of financial control,
customer satisfaction, and operational excellence on a global level at the major Food Packaging company.

8. Limitations and Considerations

Despite the significant benefits realized through the Oracle Channel Revenue Management (ChRM)
implementation, the company encountered a range of post-deployment limitations and unforeseen challenges that
merit discussion. These observations provide a more balanced perspective on the long-term sustainability and
performance of the solution.

One key limitation was the complexity of maintaining configuration integrity over time. As

company’s

business

expanded and trade terms evolved, frequent updates to claim types, approval hierarchies, and budget structures
were required. The flexibility of Oracle ChRM, while a strength, also introduced administrative overhead, especially
in managing cross-functional dependencies. Small changes in trade profiles or budget rules sometimes caused
downstream issues in claim matching or financial postings, requiring tight coordination among IT, finance, and sales
teams.

Another challenge emerged in scaling the solution globally. While the modular setup allowed for replication across
business units, regional nuances such as tax localization, language-specific communication, and integration with


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legacy systems introduced longer deployment lead times in Europe and Asia-Pacific compared to the U.S. rollout.
The governance model, although robust, required augmentation to address time zone differences and localized
training needs for business users in remote geographies.

Company also observed that system performance, particularly in claims investigation and reporting modules,
degraded during periods of peak transaction volume. Dashboards and approval workflows sometimes experienced
latency, which delayed claim resolution. Although Oracle's cloud infrastructure offered scalability, certain reporting
workloads required optimization through indexing strategies and archiving of historical claims data.

From a user experience standpoint, the cultural shift from manual processing to system-based workflows was
significant. While training was comprehensive during go-live, ongoing onboarding for new employees became a
bottleneck, especially in high-turnover departments. This revealed a need for embedded system tutorials and more
intuitive user interfaces tailored to non-technical users.

Lastly, certain limitations in predictive analytics emerged post-deployment. While Oracle Analytics Cloud was
envisioned as a long-term solution for forecasting and exception detection, the company found that building
reliable predictive models required far more historical data and technical modeling expertise than initially assumed.
As a result, the transition to proactive deduction prevention is still in progress and remains an area of strategic
investment.

In conclusion, although Oracle ChRM delivered substantial operational and financial benefits, its post-deployment
journey underscored the importance of continuous improvement, proactive governance, and investment in user
experience and data science capabilities. These insights serve as valuable lessons for organizations aiming to
balance automation with adaptability in complex, high-volume financial ecosystems.

9. Future Outlook

As company forges ahead with digital finance transformation, Oracle Channel Revenue Management [3] (ChRM)
will increasingly assume a strategic role in shaping the company's global revenue operations. Having launched
deduction management successfully for its U.S. business, company is now poised to leverage this capability across
other geographies and business segments, as well as integrate sophisticated technologies and align with new
compliance mandates.

One of the immediate priorities is to extend the ChRM solution to company

’s European operations, including

business units in France, Germany, and the United Kingdom. These regions bring their own regulatory complexities
and localized trade practices. However, the modular configuration established during the North American
deployment provides a strong foundation. The global classification of claims, uniform accounting rules, and elastic
workflow architectures can be reused and reconfigured to local requirements to enable a globally synchronized but
locally controlled model of deductions. This strategic approach achieves cross-border congruity in operations and
financial management.

Along with that, the company intends to enhance integration between Oracle ChRM and upstream systems, such
as trade promotion management and price. ChRM today is recognized as the downstream process for authorizing
and settling deductions. The future vision is that of a closed-loop setting where promotional programs, rebate
arrangements, and pricing terms flow without interruption from planning to execution and then into execution and
financial analytics. The firm will also combine ChRM with Oracle Pricing and Order Management modules in a way
that terms of trade agreements are pre-populated as well as traceable, hence improving accuracy and control from
the start of each transaction. Through this, the company can better connect promotional plans with actual sales
patterns, reduce leakage, and optimize return on trade investment.


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Going forward, the company also intends to implement predictive analytics and artificial intelligence within its
deduction management. Through Oracle Analytics Cloud, the company aims to create real-time dashboards and
intelligent[13] models that can forecast volumes of deductions, detect unusual claim patterns, and recommend
best resolution strategies. These features will support an active instead of reactive resolution of disputes, enabling
finance teams to step into action early when abnormal deduction trends are detected and reduce potential risks
before they occur.

The firm is also investigating means to integrate deduction management with other Environmental, Social, and
Governance (ESG) programs. With increasing stakeholder and regulatory requirements for ESG reporting,
companies envision an era in which social incentive deductions or sustainability programs are able to be reported,
audited, and categorized separately. The rule-based setup of Oracle ChRM enables claims to be tagged with ESG-
related metadata in a manner that promotes transparency and compliance with future disclosure frameworks such
as the Corporate Sustainability Reporting Directive (CSRD [8]) in the European Union.

Oracle ChRM usage is also assisting the company to migrate to continuous accounting. With real-time claim creation
and settlement integrated into Oracle Receivables and Subledger Accounting [5], the company is phasing out its
dependence over time on traditional period-end reconciliations. Instead of waiting for month-end close to estimate
financial impacts, management is now starting to get access to live dashboards with real-time deduction activity
and settlement patterns. This capability is ushering in real-time decision-making, faster closings of the books, and
increased responsiveness to shifting market realities.

In summary,

the company’s

strategic roadmap for Oracle ChRM reflects a long-term commitment to automation,

integration, and operational intelligence. By embedding this solution into its core financial architecture and
expanding its application across planning, compliance, and analytics, the company is positioning itself to lead in
both financial control and customer-centricity in the evolving landscape of global manufacturing and trade.

10. Conclusion

Oracle Channel Revenue Management (ChRM) with Oracle Receivables in compamy is a significant step in the
company's overall objective of revolutionizing finance operations and eliminating inefficiencies in the order-to-cash
process. As post-invoice deductions, revenue loss, and dispersed settlement processes became mounting issues,
company took a leap that went beyond automation

it aimed to incorporate transparency, ensure compliance, and

lay the groundwork for scalable growth.

Through the deployment of a rules-driven, central facility, the company was able to convert erstwhile manual,
standalone workflows into disciplined, audit-able processes. With deliberate deployment of ChRM's Claim
Investigation and Settlement Workbench modules, together with Oracle Receivables and Subledger Accounting, it
could automatically identify short-pays, route them through applicable workflows, validate claims against trade
terms, and settle them accurately. This integration minimized revenue leakage, improved financial accuracy, and
largely eliminated the need for journal entries. Additionally, Oracle ChRM's flexibility allowed the company to
establish GL-specific treatment for different types of claims, such as US GAAP compliance and internal reporting.

The results were tangible and multi-dimensional. The company recorded the significant drop in open deductions,
sped up cash application cycles, and improved working capital transparency. Beyond operational metrics, the
implementation improved finance and sales coordination, provided leadership with real-time visibility, and
positioned the company to respond quickly to evolving trade patterns. Maintaining a governance structure in place
via its Deduction Management Center of Excellence, the company also maintained continuous alignment among
system capabilities and business priorities.


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In addition to this, the solution has provided the framework for innovation in the future. Through geographic
expansion, predictive analytics, ESG-linked deduction tracking, or integration with upstream trade planning
systems, Oracle ChRM is a strong and flexible foundation that can grow to meet the changing business. Having the
ability to manage deductions not only reactively, but as part of an active financial strategy, gives the wider potential
of ERP Cloud solutions when used with a long-term vision.

The company’s

experience affirms that deduction management is no longer a back-office function to be resolved

after the fact. With the right systems and strategy, it becomes a driver of financial health, a source of commercial
insight, and a foundation for global operational excellence.

11. References

1.

Borthick, A. F., & Pennington, R. R. (2021). Systemic risk and accounting information systems.

Journal of

Information

Systems

,

35,

5

20.

https://www.researchgate.net/publication/320964989_When_Data_Become_Ubiquitous_What_Becomes_
of_Accounting_and_Assurance

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Библиографические ссылки

Borthick, A. F., & Pennington, R. R. (2021). Systemic risk and accounting information systems. Journal of Information Systems, 35, 5–20. https://www.researchgate.net/publication/320964989_When_Data_Become_Ubiquitous_What_Becomes_of_Accounting_and_Assurance

Wong, J., & Venkataraman, R. (2023). Automation in Financial Accounting: A Case for Rule-Based Systems. Journal of Financial Transformation, 58, 32–45. https://www.capco.com/Intelligence/Capco-Intelligence?q=Capco-Journal-58&currentpage=1&topic=

Oracle Corporation. (2024). Oracle Channel Revenue Management Cloud Implementation Guide. Oracle Press. https://docs.oracle.com/cd/F82751_01/books/V5.1.0.0.0/Oracle_Revenue_Management_Billing_Cloud_Service_Premium_Edition_Implementation_Guide.pdf

Oracle Corporation. (2023). Best Practices for Claims and Deductions Management with Oracle Receivables and Trade Management. Retrieved from https://community.oracle.com/customerconnect/discussions/tagged/449-deductions-management/p1

Oracle Corporation. (2022). Oracle Financials Cloud: Subledger Accounting Concepts and Setup. Oracle Documentation Library. https://docs.oracle.com/en/cloud/saas/financials/latest/fausi/

Oracle Corporation. (2023). Receivables Cloud: Managing Deductions, Claims, and Adjustments. Oracle Support Document ID 2623314.1. Retrieved from https://support.oracle.com

Financial Accounting Standards Board (FASB). (2022). ASC 606: Revenue from Contracts with Customers. Retrieved from https://www.fasb.org/page/PageContent?pageId=/projects/recentlycompleted/accounting-standards-update-no-2016-02-leases-topic-842.html

European Commission. (2023). Corporate Sustainability Reporting Directive (CSRD). Retrieved from https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en

Deloitte. (2023). The autonomous Quote to Cash. Deloitte Insights. https://www.deloitte.com/us/en/services/consulting/services/enterprise-quote-to-cash-solutions.html

PwC. (2022). Managing Trade Promotion Effectiveness: A Finance and Sales Partnership. PwC Reports. https://www.pwc.com/us/en/products/customer-engagement/performance-analyzer.html

KPMG. (2022). Enterprise Risk Management in Finance Automation. KPMG Advisory Publications. https://home.kpmg/xx/en/home/insights/2022/09/enterprise-risk-management.html

Ernst & Young. (2023). Global Trade Finance Trends and ERP Integration Models. EY Insights. https://www.ey.com/en_gl/insights/tax/erp-transformation-to-deliver-business-wide-benefits

Accenture. (2023). Finance 360: Embedding Intelligence Across the Value Chain. Accenture Strategy & Consulting. https://www.accenture.com/usen/about/company/integrated-reporting