> ## Documentation Index
> Fetch the complete documentation index at: https://support.stuut.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Deductions

> How Stuut identifies, validates, and resolves short-pays on incoming payments.

# Deductions

> How Stuut identifies, validates, and resolves short-pays on incoming payments.

<AccordionGroup>
  <Accordion title="What is a deduction?">
    A deduction is when a customer pays less than the invoiced amount. It shows up as a short-pay on an incoming payment in Cash Application. Deductions have to be resolved — either accepted (the short-pay was valid) or fought (the short-pay was not).

    There are two types:

    **Standard deductions** — small, contractual adjustments taken at the time of payment. Common examples:

    * Early-pay discounts (e.g., 2/10 net 30)
    * Freight deductions per contract terms
    * Minor pricing differences between invoice and PO
    * Tax or rounding differences
    * Agreed-upon rebates or allowances

    **Trade deductions / chargebacks** — retailer-initiated penalties and claims, more common if you sell into large retailers. Common examples:

    * OTIF (On-Time In-Full) fines
    * Shortage claims
    * Compliance violations (labeling, pallet config, ASN timing, routing requirements)
    * Promotional or co-op advertising claims
    * Returns and RGA deductions
    * Slotting fees or new-store allowances

    Standard deductions are high in volume but individually small. Trade deductions are lower in frequency but larger and more often invalid.
  </Accordion>

  <Accordion title="How does Stuut handle deductions?">
    Every short-pay identified in Cash Application flows automatically into the Deductions module, with context already attached. From there, Stuut's agent takes action:

    **Standard deductions within policy** — the agent validates against your contract terms, posts the adjustment, and closes it. No action needed.

    **Trade deductions with a clear validation path** — the agent pulls supporting documentation and adjudicates. Valid claims are accepted. Invalid claims get a rebuttal drafted and submitted through the retailer's preferred channel.

    **Ambiguous or high-dollar claims** — routed to your team with a recommended disposition and supporting docs pre-assembled.

    The agent tracks submitted rebuttals, follows up on aging disputes, and closes out when the retailer responds.
  </Accordion>

  <Accordion title="Where do I find open deductions?">
    Deductions surface in your task queue. Each task includes:

    * The short-pay amount and invoices involved
    * The deduction type and reason code (if detected)
    * Supporting documentation the agent has pulled
    * The agent's recommended disposition (accept, write off, or rebuttal)

    You can also view deductions from the relevant invoice's detail page.
  </Accordion>

  <Accordion title="What is the difference between Deductions and Disputes?">
    **Deductions** — the customer has already paid less than invoiced. A short-pay is on the bank statement and needs to be resolved via coded claims.

    **Disputes** — the customer is contesting an invoice before paying. Disputes arrive as unstructured communication and require investigation first.

    A deduction and a dispute can be linked — if a short-pay traces back to an ongoing complaint, the agent connects them.
  </Accordion>

  <Accordion title="What documentation does Stuut pull for trade deductions?">
    The agent can pull from:

    * **Shipping records** — BOL, POD, carrier data, ASN records
    * **Contract and pricing master** — pricing, allowances, payment terms, freight responsibility
    * **Trade promotion records** — promo calendar, funded amounts, co-op and MDF claim eligibility
    * **Retailer portals** — Walmart Retail Link, Target Partners Online, Amazon Vendor Central, and other portals where claims and debit memos are filed
  </Accordion>

  <Accordion title="How are rebuttals submitted?">
    The agent drafts a rebuttal and submits through the retailer's preferred channel:

    * **Portal** — for retailers with dedicated submission portals
    * **EDI 824** — for machine-readable dispute responses in large-retailer relationships
    * **Email** — for customers without a formal portal

    You can review any rebuttal before it goes out if your configuration requires approval.
  </Accordion>

  <Accordion title="What does write off mean and when does it happen?">
    Writing off a deduction means closing it with no recovery. Stuut supports automatic write-off rules for recurring small adjustments posted to a GL account.

    For larger or invalid deductions, write-off is a manual decision in the deduction workspace.
  </Accordion>

  <Accordion title="How do Deductions and Cash Application connect?">
    Deductions begin in Cash Application. When a payment does not fully cover the invoiced amount, Cash Application flags it as a short-pay and routes it to Deductions with full context attached.

    If a deduction is resolved and the customer sends the remaining balance, Cash Application picks up that payment and closes the loop automatically.
  </Accordion>
</AccordionGroup>