Dispute Management with SAP

Financial Supply Chain

Management

14/07/2010
Priti Parikh
Employee No: 255178
priti.parikh@tcs.com

PREFACE
This document is prepared to help SAP Consultants for better
understanding of Dispute Management with SAP Financial Supply
Chain Management.

For better understanding of the concept required screenshot has been

attached. Further utmost care has been taken to make it more users
friendly & ready to use.

Priti Parikh
priti.parikh@tcs.com

Table of Contents
Module 1: Dispute Management Overview .4
1.1 What is Dispute Case .5
1.2 SAP Dispute Management Process 11
Module 2: Dispute Case Creation..12
Module 3: Analysis of Dispute Case.19
Module 4: Dispute Case resolution..20

Module 1 Dispute Management Overview

Invoice accuracy is a key focus area for any business and an integral
part of invoice accuracy is how we manage the invoice dispute
process.
There are 3 fundamental benefits of the FSCM Dispute Module that
supports the business needs:1) Accurate overview to both Customers disputed and outstanding
invoices
2) Facilitate quick resolution of the invoice dispute
3) Ability to register record root cause Departments and Root
Cause Reason on resolved invoice disputes
Merely registering the Root Causes from a data perspective will not fix
the Root Cause, but strategic correction of the root cause can only be
obtained through analysis of the root cause data registered, facilitating
the prioritization of the corrective actions that need to be taken to
achieve invoice quality.

SAP Dispute Management provides following Opportunities.

Control and streamline dispute cases
Improve liquidity and cash forecast
Organize and store all information and documents with respect
to dispute cases
Sophisticated tracking and reporting of dispute cases
Gain information about flaws in existing processes that
frequently lead to disputes

Topic 1.1 what is Dispute Case?

A Dispute Case is business object that:

Uses descriptive attributes to summarize the information at the

header level (case attributes)

Links all of the documents and objects that are relevant to

resolving a dispute case in an electronic file

Can be created manually or via batch job processing when a

residual AR line item is generated

Key Terms

Residual Item
A document is automatically created in SAP when a
payment is received that is over or under the invoice
amount.

Partial Payment
A document is automatically created in SAP when a
payment is received that is under the invoice amount and
is partial settlement of an outstanding invoice amount

Reason
The reason is a dispute case attribute and provides the
cause of the dispute case.

Status
The current state of processing.

Previous Status
The state of processing prior to closure of the dispute case.

Category
An optional field that provides a more detailed reason code
for the dispute case.

Case ID
Unique SAP generated identification number for the
dispute case

Root Cause Code

Reason for claim resolution status. Relationship has also
been enforced with the reason code.

Coordinator
Person responsible for monitoring, coordinating and taking
responsibility for processing of the dispute case.

Processor
Person currently assigned to the processing of the dispute
case, or responsible for the next step in the dispute case
resolution.

Person Responsible
Person to whom the dispute case is escalated to.

Case Attributes
Case Attachments

Case Log
Case Notes

Case
Record

Key Contents of a Dispute Case:

Case Attributes
o Includes the Cause, Root Cause Code, Category, External
Ref., Processor, Status, etc.

Case Attachments
o Any relevant document can be attached to the dispute
case

Example: Proof of Delivery (PODs)

Case Notes
o Created to document activities connected to dispute cases.
Include internal and external notes i.e.
 Description
 Concluding Remarks

Case Log
o Displays the history of actions performed on the dispute
case including:
 User and time/date stamp
 New value vs. Old value

Case Record (Linked objects)

o Provides links to the dispute case and structured into
corresponding fields
 Includes:
Business Partner
o Customer number and information
Disputed Objects
o Open residual AR line items
Resolved Objects
o Closed AR line item from original dispute
case (Invoice)
Item Assigned during Clearing
o Closed AR line items offset against the
dispute case (Credit Memo)

Dispute cases can be created from the following four transactions in Financial
Accounting:

Document Display
Document Change
Line Item List
Clearing Transactions
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Integration with AR

Various fields contain information that is brought in from AR. The field
mappings are shown below. All updatable fields have been synchronized
between AR and Dispute Management.
DM Field

AR Field

Cause

Reason Code

AR Document Date

Document Date

AR Posting Date

Posting Date

AR Document Number

Document Number

AR Item Number

Item Number

External Ref

Assignment ID

Reconciliation Period

Text

Store Number

Reference Key 1

Chargeback Number

Reference Key 2

Ext. Reason Code

Reference Key 3

Payment Ref.
Check Number

Payment Reference
Reference

Reasons for Residuals

All reasons for residual line items have an SAP A/R Reason Code. A/R
Reason Codes have been synchronized with Dispute Management
Reason Codes. Please see below for a list of all applicable Dispute
Management Reason Codes:
Dispute Management Reason Codes
060

Advertising

085

Billing Adjustments

110

Freight

150

Mis-shipment

180

Price Protection

190

Pricing

200

Rebate

220

Returns

300

Shortages

310

Unidentified

320

Vendor Compliance

Categories

Every reason code has a level below it called Categories. Categories are
used as extension to reason codes. An example of a reason code and
category relationship is Shortage (reason code) and Box-lot Shortage
(Category). Relationships are encouraged but not enforced. The various
Categories for disputes are listed below: SAP Standard
Dispute Management Categories
0001

Base Pricing

0002

Box-lot Shortage

0003

Concealed Shortage

0004

Defective Allowance

0005

Discounts/Promotions

0006

Early/Late Ship

0007

EDI Errors

0008

EST

0009

Expedited

0010

Fill Rate

0011

Freight

0012

Freight on Returns

0013

Games

0014

Late Submissions

0015

Meeting Convention

0016

Miscellaneous

0017

Mis-picks/substitution

0018

Mis-Shipment

0019

Non-Receipt

0020

Overshipments

0021

Past Due Invoice

0022

POD Required

0023

POS Rebate

0024

Post Audit

0025

Pricing & Quantity Variance

0026

Pricing Variance

0027

Quantity Variance

0028

Refused Shipment

0029

Rental

0030

Rental Pricing

0031

SBT

0032

Supplemental Requests

0033

Unidentified

0034

VOD

0035

Volume Rebate

The various Status involved in Dispute Management are:

Dispute Management Status

o New (10), when a dispute case is created
o In Process (20), when work on a dispute case begins
o Closed (30), when cash is applied against the residual a/r line item
o Cancelled/Void (50), not commonly used, when a dispute is
cancelled or must be voided

Claim Status (Open statuses), if the dispute case is in open the status
can manually be changed to:
o Approved (22) Acceptance of the dispute claim
o Denied (21) Rejection of the dispute claim
o In Process (20) When the claim is still being worked on
o Threshold Adjustment (23) Claim is automatically written off via
dispute management (automatic)
o Settlement Write off (24) Claim is written off via reconciliation
settlement (manual)

Previous Status (Closed statuses), captures the status of the dispute

case prior to closure (primary function is for the reporting of closed dispute
cases):
o Approved (22) Acceptance of the dispute claim
o Denied (21) Rejection of the dispute claim
o Threshold Adjustment (23) Claim is automatically written off via
dispute management (automatic)
o Settlement Write off (24) Claim is written off via reconciliation
settlement (manual)

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Topic 1.2 SAP Dispute Management Process

The Dispute Management process begins with receiving a dispute from a

customer. During cash application a residual line item must be created. Once the
residual line item is created in the system, generation of the case will begin. If a
customer withdraws the dispute case the process will end there. More commonly
the dispute will continue and research will begin. Depending on need the various
research methods will be conducted. Next a decision must be made on whether
to deny or approve the claim based on the research conducted. If the claim is
denied, correspondence must be sent to the customer. If the claim is approved a
credit must be issued. The final step is reporting on dispute cases based on all
steps of the dispute management process.

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MODULE 2: DISPUTE CASE CREATION



Dispute cases are created from the generation of residual A/R line
items
i Cash application
i Internal Offsets
i A/R Line Item Display
Dispute cases can be created manually from accounts receivable
i At the time of residual line item creation
i From the A/R line item display
Dispute cases will primarily be created via batch processing to be
scheduled according to business rules

Dispute cases can be created based on residual line items resulting from the four
different methods of cash application:
o One at a time
o En masse FDM_AUTO_CREATE (Scheduled Batch job)

Dispute Cases on Open Residual Line Items

When an open residual item occurs a dispute case must be created for the line
item. There are two ways to create the dispute case; one at a time or en masse.
One at a time
o Creating a dispute case on open residual line items one at a time is
best used when only one or a few line items exist. This is the only
transaction that will be exercises in training since it will be the only
used by end users.
Mass Creation
o Creating dispute cases on open residual line items en masse is
best used when there are multiple line items that need dispute
cases. This transaction will be done in the background and
therefore will not be discussed further in this course.

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Creation of dispute Case via Manual Cash Application F-28

Enter the transaction by typing in F-28 in the command bar or use the menu
path: Accounting  Financial Accounting  Accounts Receivable 
Document Entry  Incoming Payment

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Click on Create Dispute Case button. Then Pl input Necessary inputs & dispute
Case will be created when you post document

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Display Dispute Cases FBL5N or FB03

Enter the transaction by typing in FB03 in the command bar or use the menu
path: Accounting  Financial Accounting  Accounts Receivable 
Account  Display/Change Items
Note: You can display Dispute Cases using FBL5N as well.
Scenario:
You need to display dispute cases.

Double Click on Line item one to Create Dispute Case

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& then Input Parameters & Dispute Case is created with unique dispute
case ID

16

17

View Dispute Case Data

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MODULE 3: Analysis of Dispute Case

Analysis to Determine Dispute Case should be approved or denied.
Key elements are
Splitting Dispute Cases
Attaching Documents
Inserting Notes
Changing attributes

Splitting Dispute Cases

After a dispute case has already been created and analyzed a dispute case may
be split for the following reasons:

Dispute case is related to more than one reason code

Partial approval/denial of the claim

Attaching Documents
Documents pertaining to the dispute case can be attached to the case in SAP for
documentation purposes. Various types of documents can be attached such as
customer claim documentation and Excel files containing research / title
information.
Inserting Internal and External Notes
Notes that are relevant for the dispute case can be written directly into the
system. Once notes are created they will be saved in the system but changes
can be made to notes but the user who entered the notes or others is the option
is allowed.
Dispute case notes documents the processing of a dispute case
i
Description Describes why customer is disputing the item and is
displayed on the claim denial correspondence
i
Internal Notes For internal use only
i
Concluding Remark Describes claim resolution and is also displayed
on the claim denial correspondence
Change dispute case attributes
Dispute case attributes can either be changed one at a time or in mass. The
benefit to one at a time is for ease when inside of a single dispute case or when
a low volume of dispute cases must be changed. The benefit for changing
attributes in mass is for speed and efficiency when changing high volume
amounts of dispute cases at a single time.
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MODULE 4 : Dispute Case Resolution

Denial
 Enter Reason
 Select Cause
 Select Category
 Change status to Denied
 Enter notes
 Send Denial Correspondence

Approval
 Enter Reason
 Select Cause
 Select Category
 Change Status to Approved
 Issue Credit
 Offset Credit

Write







off
Enter Reason
Select Cause
Select Category
Change Status to Settlement write off
Issue Credit
Offset Credit

There are two types of write off:

1. Automatic
Requires no work as it is done in the background
2. Manual

Write-offs due to reconciliation settlements.

Reason, Cause, Category, Status = Settlement write off

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