When a write-off approval limit no longer matches the business
Limits set three years ago can force constant exceptions — or push people to split write-offs below the threshold.
If your exception log is crowded with write-off overrides, the threshold may simply be wrong for today's revenue mix. Alternatively, staff may be splitting larger write-offs into smaller ones to stay under a limit that still looks strict on paper.
We look for clusters of near-threshold transactions on consecutive days with the same customer or SKU. That pattern often signals limit gaming rather than genuine small adjustments.
Resetting limits should be a deliberate governance decision with documentation of the rationale, not an informal nod from a line manager. Once reset, retire the old exception category or you will keep measuring noise from a problem you already intended to fix.