What should be included in the analysis of deductions?

The analysis of deductions plays a crucial role in understanding the reasons behind customer deductions and managing accounts receivable effectively. Choosing to include the age of deductions and their outcomes is essential because it provides insights into how long deductions have been outstanding and how successfully they have been resolved. This information helps in identifying patterns, such as recurring issues with specific types of deductions or customers, and whether the organization's resolution strategies are effectively reducing the number and amount of deductions over time.

Understanding the age of deductions allows accounts receivable teams to prioritize their collection efforts and take timely actions on older deductions that could represent significant cash flow that is tied up. Monitoring outcomes can help assess effectiveness and inform process improvements in billing or customer relations. This analysis is crucial for minimizing losses from ongoing deductions and improving overall accounts receivable performance.

While factors like type of customers, vendor performance metrics, and geographic sales data can provide contextual information, they do not directly address the specific issues associated with deduction management as effectively as age and outcomes do. Therefore, focusing on age and outcomes is the most relevant choice in analyzing deductions.