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Resolve Low Balance Deductions (Automatically)

This article outlines the steps to set up below threshold automations in order to resolve low balance deductions efficiently.

Video Tutorial 

 

Building a Below Threshold Rule

  1. Navigate to Business → Deductions Reconciliation 2.0. 
  2. Click the Deduction Automations icon⚡ Lightning Bolt.
  3.  Select Build Rule, or click the three dots icon to edit, or enable/disable an existing rule. 
  4. Set the threshold amount

    • The default amount is the recommended threshold based on the past 3 months of deduction activity. This threshold recommendation is based on the amount that would auto-resolve approximately the bottom 4% of deduction dollars. 

       

Caution: Low amounts of historical data or outliers can skew this recommendation, so always review the suggested threshold before enabling.

    • Enter any value appropriate for your business context. Use previous deductions data to inform the best threshold for your brand. We recommend setting a threshold based on the bottom 4% of deduction dollars.

Note: If you are unsure where to start and there is not yet 3 months of data in the platform, Vividly’s general recommendation for a threshold is $100. 

  1. Choose clearing method:
    • Write-offs: Select a fund type with an associated write-off account.
    • Promotions: Select an active “Below Threshold” promotion.
      • Only one promotion per month can be selected to avoid ambiguity.
      • If multiple are selected for the same month, an error will appear.
  2. Save the rule:
    • Save (disabled) – Stores the rule but does not make it active.
    • Enable – Makes the rule active and ready for use.

Screenshot 2026-04-08 at 2.12.21 PM

Running Below Threshold Automation

  1. Create or open a transaction in DRM.
  2. Breakout Invoice Header for each deduction and repayment. 
  3. Confirm invoices are in New status.
  4. Confirm there is no differential:
    • The transaction’s original amount must equal the sum of its invoices.
    • Any mismatch (higher or lower) will block automation.
  5. Click Run from the ⚡ automation menu.
  6. Invoices meeting all criteria and under the threshold will automatically clear to a promotion that lines up with the Month/Year of the Transaction.

Example Scenarios

Assuming a threshold of $100:
  • ✅ Invoice amounts $40, $30, and $10 auto-clear to the monthly promotion that corresponds with the Transaction date.
  • ❌ Invoice for $100.90 remains untouched (above threshold).
  • ❌  Repayments showing as negative amounts will not be auto-cleared unless the absolute value is less than $100. For example, -$1,000 will remain open, while -$50 will be automatically cleared. 
  • ❌ Invoice already in progress with manual lines will not be modified.
  • ❌ Transaction with differential (e.g., original = $5,000 but invoices total $4,870) fails with an error.