Which statement describes the purpose of an Automated Deduction (AAD)?

Which statement describes the purpose of an Automated Deduction (AAD)?

• A. It is used for refunds to customers
• B. It is used to correct discrepancies within the allowed age and amount
• C. It is used for airline credits
• D. It is used to issue debit memos

Answer: (B)

Automated Deduction is used to automatically apply adjustments to an agency’s ARC account to fix discrepancies that are within predefined thresholds for age and amount. This lets ARC reconcile invoices and settlements quickly by correcting small, approved mismatches without manual intervention. The age window keeps the adjustment within a timely period, and the amount limit prevents large or uncertain items from being auto-handled. It isn’t about refunds to customers, airline credits, or issuing debit memos; those are handled through other processes.

Automated Deduction is used to automatically apply adjustments to an agency’s ARC account to fix discrepancies that are within predefined thresholds for age and amount. This lets ARC reconcile invoices and settlements quickly by correcting small, approved mismatches without manual intervention. The age window keeps the adjustment within a timely period, and the amount limit prevents large or uncertain items from being auto-handled. It isn’t about refunds to customers, airline credits, or issuing debit memos; those are handled through other processes.