Dispute Management
SAP Dispute Management is a part of SAP FSCM. Dispute Management provides function
for processing Receivables related to dispute cases.
Dispute Management helps in controlling and streamlining the dispute case process,
enables cross department dispute resolution.
It helps to organize and store all information and documents related to a dispute case.
Finally it helps to track the dispute case and help control work distribution.
Real Time integration with other modules in SAP
Possible to integrate with third party systems.
Disputes Reasons
If you do not have the right information at hand, resolving a dispute can take a lot time and effort. This
costs major organizations large sums of money and shifts the focus away from their primary business. With
an integrated dispute and collection system these issues are addressed and reduced.
The most common issues for disputes are:
Too late/early shipment or delivery
Pricing errors and deductions
Damaged goods or packaging
Bonus, rebate claims or trade promotions
Order or billing document problems
Product quality or quantity issues
Payment problems
Returned or refused goods
How Disputes Affects Business?
Increase DSO and reduce working capital
Reduced customer satisfaction
Increased deductions and write-offs
Organizational workload and distress
Reduced productivity
Dispute Cases
“The process of recording, processing, escalating and resolving disputes relating
to customer invoice queries”
Creation of Dispute Case
Manually by the dispute specialist
Automatically from incoming payment residual items or open items
From collection worklists or open item customer lists
When clearing a customer account
Directly from invoices
Functions of Dispute Case
In the dispute case user can:
• – Add notes
• – Add attachments
• – Drill into linked items – invoices, credits
• – Change the status to record an action
• – E mail the dispute internally or to the customer
• – Assign Dispute Case to Responsible Person
SAP FSCM Collection Management
The collections management function within SAP FSCM supports in active
receivable management and helps to prioritize customer receivables based on
defined rules.
Priorities which are set up can be used to set up distribution of collection
work to collection specialists, who can record a history of collection related
contacts with the customers.
The Collection Module functionality is integrated with the Dispute
Management and FI-AR Application to help businesses with the ability of a
well focused and targeted AR Collections and reduce the pending cash cycles.
Collection Worklist
Collection Worklist:
Customers that fulfill the rules defined in a strategy are distributed to worklists to
all collection specialists.
The collection specialists in your company can use these worklists as a basis for
contacting customers in their order of priority and collecting outstanding
receivables.
Create promise to pay, Create Dispute Case, Resubmission, Send Correspondence
Display an overview of all the invoices, promises to pay, dispute cases,
resubmissions, and previous customer contacts.
Collection Worklist
Collection Specialist
Access worklist and review the worklist
View the customer items and accounts
Contact customers
Create Promises to pay or promises to pay with instalments
Perform resubmissions of different documents and billing documents
Execute dunning
Send Correspondence
Create internal notes
Send contact logs to customers
Close the customer contact
Create dispute cases or look up customer dispute cases
Access and investigate accounting, delivery, and billing documents
Collection Strategy
It decides the prioritization of customers for collections and decides the information
in the worklist which is used for collections management. The prioritization of
customers is done based on certain rules. (e.g. currency, aging, risk category in credit
management)
Promise to Pay
A promise to pay is an object which tells the Specialist or a business user that the
customer has agreed to pay an open overdue item which was part of a collection
worklist.
Process Flow for
Collection
Management
