Financial Supply Chain Management FSCM - DMDispute 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

disputecase 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: Short payment – Process Flow

Process Incoming Payments (F-28) Short Payment Assign Invoice &

Post residual itemUpdate Dispute case

for residual item

Dispute reason known?

Get information – Contact customer

Responsible person

Clear Invoice

YES

NO

NO

Assign Reason & Link related

Correspondence

YES

InvestigateReason for

Dispute

Valid Reason?

Clear ResidualItem & CloseDispute case

CreateCredit Memo

YES

Write off ?Write off & Close Dispute case

Refer Dispute case to Collections

NO

YES NO

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 financialprocesses 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

SAP ECC 6.0 FI-AR**

SAP DM 6.0

SAP NW 2004s

SAP ERP 2005- Single system scenario

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

Multiple system scenario 1

SAP NW

2004

SAP NW

SAP ECC 5.0 [FI-AR]

SAP DM 6.0

SAP ECC 6.0

SAP ERP 2004 -

SAP Web AS

SAP NW

2004s

SAP 4.7 [FI-AR]

SAP DM 6.0

SAP ECC 6.0

SAP NW

2004s

R/3 ENT - Multiple system scenario 2

ALE

ALE

R/3 4.6c - Multiple system scenario 3

SAP 4.6c [FI-AR]

SAP Basis

4.6c

SAP DM 6.0

SAP ECC 6.0 SAP NW

2004s

ALE

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 ofobjects 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