Rebates

Deduction

Also called: Short pay · Chargeback deduction

A customer paying less than the invoiced amount, netting off a claimed rebate, shortage, allowance or dispute.

Deductions are self-service claims: rather than asking, the customer simply takes it. That shifts the burden of proof to you, and it arrives with a free-text reason code and no link to the incentive that supposedly justified it.

Because researching each deduction is manual and per-item, small balances are written off in bulk — and partners learn that they will be. Automating the match to the authorising claim is what stops write-off being the default outcome for anything under a threshold.

Related terms

Claim

A formal request for money owed under an agreement — raised by you against a supplier, or submitted to you by a partner or customer.

Recovery

The collection of money owed to you — the receivable side of an incentive programme, from claim through to settled cash.

Write-off

Abandoning a claim or deduction balance because pursuing it costs more than it is worth.

Still not clear?

Send it to us. We answer, and the good questions end up back in this glossary.

Ask us directly →

See the term in the product.

Thirty minutes, walking the mechanism you just read about through modelling, accrual, claim and settlement — against examples close to your own programmes.

Book a demo Back to terminology