Finance

Write-off

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

Write-off is a rational response to a bad process. When investigating a deduction takes forty minutes and the balance is two hundred dollars, writing it off is correct — which is why the volume of write-off is a direct measure of how automated the matching is, not of how honest the counterparties are.

Strong programmes resolve above 85% of deduction value without manual research, which changes the economics enough that small balances stop being written off by default.

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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.