Post outgoing invoice and create open item

Posts outgoing invoice in accounts receivable accounting

Employee Roles

Post incoming payment and create dispute case for difference amount

Receive check and post incoming payment. The difference amount creates a residual item for which a dispute case is created in the same step

Employee Roles

Accounts Receivable Accountant

Post credit memo and clear residual item

Post credit memo and clear residual item. Re-assign dispute case to Dispute Clerk

Employee Roles

Accounts Receivable Accountant

Inquiry to the customer

Inquiry (via e-mail or phone, for example) at customer regarding the reason for deducted (disputed) amount. Result of the inquiry is processed and documented in the dispute case

Employee Roles

Dispute Manager

Verify shipping date

Query in shipping department to verify delivery date. Documentation of results in dispute case notes

Employee Roles

Dispute Manager

Shipping Agent

Forward dispute case to key account manager for decision

Forwarding of dispute case to the key account manager. The account manager is asked to decide how to proceed with the dispute

Employee Roles

Dispute Manager

Initiate posting of credit memo

Forward dispute case to accounts receivable accountant and request to create credit memo

Employee Roles

Dispute Manager

Close dispute case

Once the disputed amount is zero, the dispute case can be closed. It's also possible to close dispute cases automatically

Employee Roles

Dispute Manager

Decide to accept customer dispute

Key account manager makes final decision and approves the dispute. Dispute case is re-assigned to Dispute Clerk

Employee Roles

Key Account Manager

Sales Manager

Payment of the invoice with 20% deduction

Send check for reduced invoice amount

Employee Roles

Confirm dispute due to shipping delay

Customer explains that the reason for the deduction was a late delivery

Employee Roles

Dispute Management

This Business Scenario Map is designed to show you how four participants - accounts receivable (vendor), dispute department (vendor), key account manager (vendor) and accounts payable (customer) collaborate when a customer does not pay the full invoice amount and the deduction exceeds defined tolerance limits. The map illustrates the benefits of collaboration. Information is shared quickly and easily between business partners. This reduces the communication effort. The result is a streamlined business process that saves time and money.

Show Document Flow

Business Benefits

Capture disputes where and when they arise

Optimize collaboration between accounts receivable accounting and dispute department

Improve DSO

Improve processing costs

Streamline dispute resolution process

Discover flaws in existing processes that frequently lead to disputes

Cross-department dispute resolution

Accounts Receivable Accounting (Vendor)

Dispute Department (Vendor)

Key Account Management (Vendor)

Accounts Payable Accounting (Customer)

Post outgoing invoice and create open item

Post incoming payment and create dispute case for difference amount

Post credit memo and clear residual item

Inquiry to the customer

Verify shipping date

Forward dispute case to key account manager for decision

Initiate posting of credit memo

Close dispute case

Decide to accept customer dispute

Payment of the invoice with 20% deduction

Confirm dispute due to shipping delay

Business Benefits

Strengthen customer relationship

Targeted and more precise vendor queries

Prevention of repeat queries where vendor has lost information

Easier to express dissatisfaction


Dispute Management This Business Scenario Map describes how a dispute case can be processed in SAP Dispute Management. A dispute case is created where a customer pays a reduced amount rather than the agreed invoiced amount. The dispute case is created directly in accounts receivable accounting and directed to a Dispute Manager responsible for resolving the dispute. Another option is to create a dispute case directly in SAP Dispute Management because of a customer action. Each action involved in resolving the dispute is documented in the dispute case and can be viewed at any time. A dispute case can be processed across different departments. This is necessary, for example, if another authority has decision-making powers or can determine whether the customer's complaint was justified. Today, dispute resolution is usually a time-consuming, costly, and cumbersome process. According to a study by efinance lab, the average costs per dispute case are around EUR 128 in Europe and can rise to EUR 640. By using SAP Dispute Management, the process of dispute resolution can be structured and streamlined and processing time can be significantly reduced. The main business benefits are improved DSO and liquidity.