How AR Automation Cleared a 2-Year Walmart Deduction Backlog in Weeks

With growing online sales, it is common for suppliers and manufacturers to deal with a few deductions from trade partners. But things can get out of control for your Accounts Receivable (AR) department when you have to deal with thousands of deductions every single month.

This was the reality for one Video Game Distributor, who found themselves buried under a two-year backlog of deductions. The stakes were high and time was running out. If you’ve ever managed an AR process, especially disputing deductions, you know how time-consuming it can be.

Backstory

Imagine handling 1500 Walmart Deductions every month, each one needing to be carefully disputed. On top of that, Walmart’s deadline of 2 years for disputing claims after they are issued. For this distributor, the pressure was immense—they were often disputing claims with just two days left before the deadline. The risk? Any human error in filing could result in losing the deduction amount altogether.

This wasn’t just a logistical challenge; it was a threat to their working capital and overall business health. Three full-time employees were dedicated solely to handling Walmart deductions, while other team members were tied up with disputes from other retailers. It was a constant battle, draining resources and making it difficult to collect payments and send invoices efficiently.

Need for an Automated Solution

Frustrated by this the distributor started looking for a more efficient solution. They knew they needed something that could not only manage Walmart deductions but also streamline their entire deduction management.

However, they were skeptical. Could AR automation software really solve their problem? Would it integrate smoothly with their ERP system? And most importantly, would it be cost-effective?

Despite such doubts, the stress of working so close to deadline pushed them to explore ar automated solutions like iNymbus. Initially they were worried that onboarding a deduction management software would be expensive and would take months.

Taking the First Step

The distributor finally decided to take the plunge with iNymbus. To their surprise, the onboarding process was seamless and took just two weeks. The transition to automated deduction management software was not only smooth but also quick, allowing them to address all their problems without any delay.

The distributor remarked:

Turning Struggles into Success

Once iNymbus was up and running, the results were immediate. Within the first two weeks, the AR automation software cleared an entire month’s worth of Walmart deductions.

Over the next few weeks, iNymbus tackled the entire two-year backlog. With the support of our powerful AR automation solution, the AR team could finally breathe a sigh of relief, knowing they had the right tools in place to manage deductions efficiently.

Download our case study of another distributor, an apparel company, to see how automation transformed their business, too.

Present Situation

Today, the distributor no longer fears backlogs. The three employees who were once dedicated solely to disputing Walmart deductions now focus on preventive measures, ensuring that deductions are minimized before they even occur. This shift in focus has not only improved collections management but also significantly boosted their working capital.

The benefits of automating accounts receivable go beyond just clearing backlogs. By minimizing human error and streamlining the AR process, the distributor has been able to collect payments more effectively. The result? A more efficient and profitable business.

Looking Ahead

With the backlog cleared and a streamlined deduction management system in place, the distributor is now well-positioned to handle deductions from Walmart and other retailers without the stress and chaos they once faced. The automated deduction management software has transformed their business, allowing them to focus on growth rather than merely surviving.

Their focus has shifted from reactive dispute management to proactive AR automation, creating a more stable, profitable environment. The results speak for themselves: no more backlogs, no more last-minute scrambles—just smooth, efficient operations.

Your Turn to Transform

If this story resonates with you, you’re not alone. Many businesses face similar challenges, and the solution might be closer than you think. 

Ready to take the next step? Schedule a discovery call with us today to learn how iNymbus can help you automate deduction management.