Collections & dunning

Deduction management software that catches short-pays as the cash lands

A deduction is a short-pay: the customer sends less than the invoice and leaves you to work out why. On most teams that gap gets noticed late, weeks after the payment posts, when someone reconciling the account finally spots that a $9,400 invoice cleared at $8,900. By then the reason is cold, the backup is buried in an email, and the $500 usually gets written off because chasing it costs more than it is worth.

AccountsReceivable.ai catches deductions at the moment of cash application. When a payment comes in short, the agent matches it to the invoice, records the shortfall as an open item instead of closing the invoice, and separates the disputed amount from the balance you should still be collecting. It keeps chasing the collectible part across email, SMS and live AI calls, and routes the coded deduction to your team with the invoice and payment attached, so nothing quietly leaks to write-off. Flat monthly fee, no percentage of what it recovers.

Connect · chase · apply cash · DSO down

Collections Desk

Your books

Works with QuickBooks, Xero & NetSuite.

Collected / wk

Outstanding

AR aging

Current · 30 · 60 · 60+ · paid

Open invoices

Agent worklog

Live

Put this AR on autopilot to watch the agent chase, collect and reconcile.

Dunning sequence

1 Email

2 SMS

3 Call

4 Promise

Paid

Live, interactive · no card, no connection needed

DSO → collected invoices cleared

Flat monthly fee · we never take a cut of what we collect · works inside your accounting system

QUICKBOOKS XERO NETSUITE

Flat fee no cut of collections

Bank-grade security

Why it works

What your team gets with deduction management

Caught at cash application, not at month-end

The agent spots a short-pay the moment the payment posts, while the reason is still fresh and the remittance is still attached. That is the difference between recovering a deduction and writing it off because the trail went cold.

Dispute split from collectible

A short-pay does not freeze the whole invoice. The agent records the deducted amount as its own open item and keeps collecting the undisputed balance, so one coded line does not park thousands of dollars in limbo.

Nothing leaks to write-off silently

Every deduction is logged, routed and aged like any other receivable, with the invoice and payment attached. Your team decides what to accept and what to fight, but the decision is deliberate rather than a default that happens because nobody looked.

What it handles

Chased, collected and reconciled on autopilot

The agent syncs your invoices, chases each one across email, SMS and phone, applies incoming payments to the right invoice, reconciles your ledger, and predicts when every customer will pay.

Detects short-pays automatically as incoming payments are applied
Records the deducted amount as an open item instead of closing the invoice
Keeps chasing the undisputed balance by email, SMS and live AI call
Routes each coded deduction to your team with invoice and remittance attached
Ages and reports deductions so recurring offenders and patterns surface
Flat monthly fee, no per-user seats, no cut of what it recovers

AR AGING Collecting

INV-2047 Acme Co $4,820 Paid

INV-1990 Birchwood $9,400 Paid

INV-2120 Evergreen $1,540 12d

DSO 54 → 39 $36,080 collected this week

Why AccountsReceivable.ai

One agent that runs the whole receivables job

Not a reminder tool, not a six-figure suite, and not an agency that takes a cut. Chase, collect, apply cash and forecast in one place, on top of the accounting system you already use.

Chases every invoice

The full dunning sequence runs on autopilot across email, SMS and live AI phone calls, polite and on-brand, so no overdue invoice slips through.

Applies the cash

Incoming wires and ACH batches are matched to the right invoices automatically, so your ledger reconciles and you never chase an invoice that already paid.

Cuts your DSO

A predicted pay date for every open invoice and steady follow-up bring DSO down week over week, so more cash lands when you need it.

Good questions

Questions about deduction management

A deduction is when a customer pays less than the full invoice amount and treats the difference as settled. It is also called a short-pay. Deductions come from disputes, shortages, damages, pricing errors, returns or agreed trade allowances. The problem for AR is that the invoice looks partly unpaid while the customer considers it closed, so the gap has to be worked rather than just chased.

Deduction management software identifies short-paid invoices, captures the reason and backup, and tracks each deduction to a resolution instead of letting it sit or drift to write-off. AccountsReceivable.ai does this as part of cash application: it flags the shortfall when the payment posts, splits the disputed amount from the collectible balance, and routes the deduction to your team with the documents attached.

Partly, and it is worth being honest about the line. The agent manages short-pays and disputes on invoices in your ledger: it flags them, separates them and keeps collecting the rest. It does not scrape retailer portals or auto-validate high-volume CPG trade-promotion chargebacks. If most of your deductions are coded trade claims pulled from Walmart or Amazon vendor portals, you want a specialist CPG deductions tool; if they are ordinary B2B short-pays, this handles them well.

Most deduction dollars are lost to time, not to genuine disputes. The longer a short-pay sits, the colder the reason gets and the more likely it is written off unexamined. By flagging the shortfall the day the payment posts, with the remittance attached, the agent gives your team a live, documented item to resolve instead of a stale mystery, which is what turns a write-off back into a recovery.

Read every accounts receivable question

Explore more

More ways finance teams collect with AccountsReceivable.ai

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Stop chasing invoices. Put your receivables on autopilot.

Connect your accounting system and the agent chases every invoice, applies the cash and cuts your DSO. Flat monthly fee, and we never take a cut of what we collect.

See pricing

Works with QuickBooks, Xero and NetSuite · bank-grade security · no percentage of collections