Financial Supply Chain

Management FSCM - DM
Dispute Management

Content
SAP Dispute Management An Overview
Dispute Management - Business Requirement
SAP Dispute Management Features/Benefits
Dispute Case: Short payment - Process Flow
Dispute Case Central Unit
Dispute Case - Details
Process Integration
Integration FSCM Components
Deployment scenario
Customer Enhancements
Case study

SAP Dispute Management An Overview

Dispute Management (DM) is a part of SAP Financial
Supply Chain Management (SAP FSCM) applications.
SAP FSCM optimizes the financial and information flows
within a company and between business partners.
It helps companies to reduce sales days outstanding
(DSO) to save time and costs and improve customer
relationship management.
It enables cross-department dispute resolution and
streamlines the entire dispute management process.
Dispute Management provides functions for processing
receivables related dispute cases.
It supplements the Quote -> Cash process chain and
provides visibility of dispute cases.

Dispute Management Business

Requirement
Receivables-related dispute cases arise when
customers make an underpayment by deducting an
amount from the invoiced amount which is beyond the
accepted (Tolerance) limits defined by the organization.
The possible reasons wherein such deductions can be
justified are:
Damaged goods
Delayed delivery
Pricing issues

The reasons wherein such deductions cannot be

justified are:
On time delivery
Correct pricing

SAP Dispute Management

Features/Benefits
SAP Dispute Management controls and streamlines the
dispute
case process.
It organizes and stores all information and documents
related to a dispute case.
SAP Dispute Management enables:
Detection of quality issues
Track dispute process
Control workload
Reduces centralized A/R handling and provides
visibility
Report deductions per customer

Dispute Case

Process Incoming
Payments (F-28)

Short payment

YES
Short Payment

Process Flow

Update Dispute case

for
residual item

Assign Invoice &

Post residual item

NO
Clear Invoice
Get information
Contact customer
Responsible person

N
O

Dispute reason
known?

YES
Clear Residual
Item & Close
Dispute case

Create
Credit Memo

YES

Investigate
Reason for
Dispute

Valid Reason?
NO

Write off & Close

Dispute case

NO

YES
Write off ?

Refer Dispute case to

Collections

Assign Reason &

Link related
Correspondence

Dispute case Central Unit

Dispute case summarizes all dispute related data
namely:

Attributes such as status, priority, processor, coordinator

Notes
Actions
Correspondence and
Other linked objects such as customer, invoice, residual
item

Dispute case serves as a control object for disputed item

and has the provision to maintain parameters such as
deadlines, escalation, role assignment.
Dispute cases can be accessed and processed by all
authorized personnel according to their role in the
organization. Example: Dispute Manager; Collection
Agent & Accountant.

Dispute case - Details

Process Integration
SAP Dispute Management is integrated with the financial
processes of SAP Financials-Accounts Receivable.
Dispute cases can be created at the time of recording
payment from customers
Post incoming payments (F-28)
Cases can also be created at the time of:
Display Line Item list (FBL5N)
Clear Account (F-32)
At the time of automatic creation of dispute cases for
residual items, system copies amounts from source (FI)
document into dispute case and also links corresponding
documents.

Integration FSCM Components

Integration with SAP Biller Direct
Dispute case can be created directly from Biller Direct for
payment deductions and also for Invoices and this helps
to speed up the dispute resolution process paving way for
improved customer satisfaction.

Integration with SAP Collection Management

Dispute case can be created directly from Collection
Management for residual items and also for Invoices and
this helps to improve collection process and also enables
to resolve disputes quickly paving way for seamless
integration between cash collection and dispute
resolution.

Deployment Scenario
SAP Dispute Management 6.0 can be set up in different
ways:
Single system scenario
Multiple system scenario
Multiple system scenario 1
SAP ERP 2005- Single system scenario SAP ERP 2004 SAP ECC 6.0
FI-AR**

SAP DM 6.0

SAP NW

SAP 4.7
[FI-AR]

SAP ECC 5.0

[FI-AR]

2004s

SAP DM 6.0

A
L
E

SAPECC
NW
SAP
6.0
SAP NW

SAP DM 6.0

ALE
SAP ECC 6.0

SAP NW

SAP NW

2004

2004s

SAP 4.6c
[FI-AR]

SAP DM 6.0

ALE
SAP ECC
6.0
SAP NW

SAP Web
SAP Basis
AS
2004s
4.6c
2004s
R/3 ENT - Multiple system scenario 2 R/3 4.6c - Multiple system scenario 3

FI-AR** : ECC 6.0 includes Financials Basics 6.0

Customer Enhancements
Customer Enhancement
Control screen layout of dispute cases:
Attribute profile changes such as field changes ->Required,
Invisible, Dropdown, Not-modifiable
Field grouping
Customer specific attributes

Business Add Ins (BAdIs)

BADIS FDM_AR_DEF_FIN_COORD and
FDM_AR_DEF_RESPONSIB can be implemented to
automatically populate the values of Responsible Person,
Processor and Coordinator
BADI FDM_AR_DISP_COMPLETE can be implemented in order
to populate the header information such as Customer Account
Number, Customer Name, Customer City, Customer
State/Province, Profit Center, Sales Rep.
Customer enhancement for Automatic write-off

Folder Model
Add new folders
Control document type

Customer Enhancements
Case Record Model:
Case records models are created for the case records.
Case record model allows to define the type and
arrangement of
objects in the case record (also known as linked objects).

In the standard system, the case record model Dispute

Management is delivered in:
UDM_DISPUTE, if Accounts Receivable Accounting (FI-AR) is
used
UDM_FICA_DISPUTE, when Contract Accounts Receivable
and Payable (FI-CA) is used.

SAP Recommendation:
Do not use the case record model Dispute Management
delivered with the standard; create your own case record
model.

Thank You