Post on 01-Nov-2014
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OTCAR103 Dispute Management
Dispute Management
OTCAR103 Dispute Management
Agenda
• Dispute Management Overview• Maintain Residuals and Dispute Cases• Non-Trade Related Claims Overview• Example: SD Process – Quantity (Damage)• Example: SD Process – Value (Freight)• Example: FI Process – Customer Penalty
OTCAR103 Dispute Management
Key Changes to Dispute Management
SAP ECC provides a Claim and Dispute Management application that allows McCain to track and direct trade related claims to their proper trade claim system (TPM or Vistex where applicable) as well as track and resolve non-trade related claims within SAP itself
McCain is moving to a single, centralized Dispute and Claim Management environment that is integrated with the SAP ECC (Enterprise Central Component). This system replaces various separate standalone systems and results in greater standardization for processing claims
SAP Customer Credit Checks are not affected by disputed residual items while they are in the resolution process
OTCAR103 Dispute Management
Key Benefits for Dispute Management
Standardized Dispute and Claim Management processes across the company allowing the company to share and implement best practices
An integrated claims system saves work by removing the manual step of recreating the disputed object in a separate system
Effectively monitor and control deductions claimed by customers
Improve Business visibility of Dispute Cases by root cause, including the most common non-trade spend-related claims: price discrepancies, transportation issues for overages, shortages and damages, warehouse issues as per Overages, Shortages and Damages (OS&D) claims
OTCAR103 Dispute Management
Dispute Management Overview
What is Dispute Management?
• It is an SAP application for tracking and resolving claims – primarily intended for Deductions but it is also used for Claim Notifications.
• It is the central repository for logging all customer claims.• Dispute Management is independent from but is integrated
with ECC Accounts Receivable.
OTCAR103 Dispute Management
Dispute Management Overview (contd.)
What is a Dispute Case?
• It is an electronic file for collecting relevant information about a claim and displaying that information in a structured form.
• A Dispute Case includes attributes such as• Reason for the claim• Customer making the claim• Status of the claim
• Amount Fields show the amount of the original claim and the credited, paid and written-off amounts.
OTCAR103 Dispute Management
Dispute Management – Dispute Case
The following screenshots displays a dispute case:
OTCAR103 Dispute Management
Dispute Management – Dispute Case
The following details are required to create a dispute case in the system:
• Title – Free form identifier field for the Dispute Case• Customer – Customer # and Name• Company Code – Company Code of the customer• Status – New, In Process, Valid, Invalid, Closed and Void• Reason – Reason code for the Claim• Processor – Dispute Analyst or Broker• Coordinator – Always Dispute Analyst• Customer Disputed Amount – Manual Amount entered for Claim• Notifications – Not used for Deductions• Currency – The currency of the Customer Disputed Amount
OTCAR103 Dispute Management
Dispute Management – Dispute Case (contd.)
The following details are also required to create a dispute case:
• Case Type – This will default to ZFD3 (McCain Configured)• External Reference – Customer’s Claim Reference # • Priority – (Optional) Low, Medium, High, Very High• Category – Claim Type (Deduction or Notification)• Escalation Reason – Used by Manager/Supervisor for Write-off• Person Responsible – N/A• Process Deadline – Optional – Date for completing a step in the resolution process• Planned Closed Date – Optional – Anticipated close date
OTCAR103 Dispute Management
Dispute Management – Dispute Case (contd.)
All of the below subtotals are based on auto-postings – no manual postings:
• Original Disputed Amount – Amount of Residual at time of creation• Disputed Amount – Current Amount Outstanding or Uncleared Amount• Credited Amount – Amount cleared with a Credit Note. All valid claims are cleared using a Credit Note. This rule applies to trade and non-trade claims• Paid – Amount Paid back by the customer• Cleared Manually – Claims cleared by manually charging them off to a G/L
account• Auto Write-off – Claims cleared using the Dispute Management write-off
function• Currency – Auto-determined based on company code
OTCAR103 Dispute Management
Dispute Management – Dispute Case (contd.)
All of the below subtotals are based on auto-postings – no manual postings:
• Created By – User (or batch job) that created Dispute Case• Changed By – Last user to update Dispute Case• Closed By – User that closed the Dispute Case• Created On – Creation Date• Changed By – Change Date• Closed By – Close Date
• Manually Entered:• Root Cause – Used for assigning a party at fault for Non-Trade Claims• Authorization Level – Security object – select your company code
OTCAR103 Dispute Management
Claim Category
Note …The deduction results in a Residual item. Then a Dispute Case is assigned to the Residual
• Claim Notification – Claim made prior to Deducting• Deduction
Customer claims are presented to McCain in two ways:
Recall that claim category is one of the attributes captured in the Dispute Case.
OTCAR103 Dispute Management
Customer Claim Types and SAP
Customer Claim Types SAPTrade
(Vistex)Billing and Account Receivables
(ECC)
Claim Notification
Non-Trade Related
Trade Related
Dispute Case
Deduction
Deduction
Non-Trade Related
Trade Related
Dispute Case
Dispute CaseTrade related
ClaimDeduction
Trade related Claim
Invoice
Invoice,
The following flowchart displays the customer claim types:
OTCAR103 Dispute Management
Agenda
• Dispute Management Overview• Maintain Residuals and Dispute Cases• Non-Trade Related Claims Overview• Example: SD Process – Quantity (Damage)• Example: SD Process – Value (Freight)• Example: FI Process – Customer Penalty
OTCAR103 Dispute Management
Dispute Case End-to-End Process
ClaimClaim Type
Deduction or Notification
Dispute Case Creation
(new)
Investigation and Validation
ResolutionTransaction
Clearing Open Items and Closing the Dispute
Case
Regardless of whether claim is a notification or a deduction, it needs to be tracked, validated, cleared, and closed.
The off-line steps for Classifying and Validating claims are essentially the same as Pre-SAP.
OTCAR103 Dispute Management
Claims Managed by McCain
• Damage • Shortage• Overage • Price discrepancy • Freight discrepancy • Cash discount discrepancy
Non Trade Related(logistics or pricing
errors)
• Vistex Claim – Deduction • Vistex Claim – Invoice Claim
Trade Related(Price deals,
allowances, rebates, and promotional or
contract agreements)
SAP system for McCain manages two broad categories of claims:
OTCAR103 Dispute Management
Instructor Demonstration
F-32 - Splitting Residuals into multiple Residuals
Scenario:Claim investigation shows that $6,000 Residual is actually made up of 3
deductions as follows:
1. $3,000 – Damage 2. $2,000 – Trade Deduction3. $1,000 – Customer Penalty
Residual needs to be split into 3 new residuals with dispute cases.
OTCAR103 Dispute Management
Instructor Demonstration
F-32 – Creating a Rebill
Scenario:After investigating a Dispute Case, it is determined that this claim is
Invalid (i.e. customer mistakenly deducted twice for same claim).
Create a Rebill for the full amount of the residual.
OTCAR103 Dispute Management
Instructor Demonstration
F-32 – Assign Credit Memo to Residual
Scenario:
Assign a Debit Residual ($3,000) to a Credit Note ($2,000) and create the resulting new residual into a ReBill.
OTCAR103 Dispute Management
Agenda
• Dispute Management Overview• Maintain Residuals and Dispute Cases• Non-Trade Related Claims Overview• Example: SD Process – Quantity (Damage)• Example: SD Process – Value (Freight)• Example: FI Process – Customer Penalty
OTCAR103 Dispute Management
Non-Trade Related Claims - Overview
To resolve Valid Non-Trade Claims there are two process flows:
• Sales and Distribution (SD) Process (Order Types)• Return Orders – ZRE• Credit Memo Quantity – ZCQ• Debit Memo Quantity – ZDQ• Credit Memo Value – ZCV• Debit Memo Value – ZDV
• Financial (FI) Process• FI Credit Memo• FI Invoice
OTCAR103 Dispute Management
Sales and Distribution (SD) Process
All ‘Invoice’ or ‘Order’ related claims (returns, refusals, overages, shortages, damages, freight, pricing etc.) are cleared using the SD process.
• Use the Decision Tree to assist in selecting the correct SD Order Type
• As a rule, always ‘Create with Reference’ to Invoice for:• ZRE – Returns• ZCQ – Credit Memo Request – Quantity• ZDQ – Debit Memo Request – Quantity
• Always Create WITHOUT Reference for:• ZCV – Credit Memo Request – Value• ZDV – Debit Memo Request - Value
OTCAR103 Dispute Management
Standard Order (SD to FI)
Sales & Distribution Module Finance Module
Accounting Document
COPA
BillingDocument
DeliveryOrder
The following flowchart displays the Standard Order process.
OTCAR103 Dispute Management
SD Process – Returns
Sales & Distribution Module
V.23
Finance Module
Accounting Document
COPA
BillingDocument
DeliveryReturn Order
The following flowchart displays the Standard Order – Returns process.
OTCAR103 Dispute Management
SD Process – Debit/Credit Memos
Sales & Distribution Module
V.23
Finance Module
Accounting Document
COPA
BillingDocument
Debit/CreditRequest
The following flowchart displays the Standard Order – Debit/Credit Memo process.
OTCAR103 Dispute Management
Financial (FI) Process
All other valid non-trade claims that are not ‘Invoice’ or ‘Order’ related are cleared via the FI Process.
• In legacy system, any claims that were previously coded to a G/L, will now use FI Process to clear• FI Process follows the same steps for all FI claims but Analyst will select different G/L account and cost center based on claim reason
OTCAR103 Dispute Management
FI Credit (FV75)/FI Invoice (FV70)
Finance Module ONLY – No SD
FBVO
Posted Accounting Document
Parked DocumentFV75/FV70
The following flowchart displays the FI Credit – FI Invoice process.
OTCAR103 Dispute Management
Clearing and Closing
The clearing and closing of a Valid Claim will be accomplished through one of the following appropriate activities:
• Assign Credit to residual item (Debit)• For all Debit Notes: Send to customer and apply incoming payment to Debit
OTCAR103 Dispute Management
Clearing and Closing (cont’d)
The clearing and closing of an Invalid Claim will be accomplished through one of the following appropriate activities:
• Deduction (Re-bill): • Full payment from customer• Credit Note after further supporting documents are provided• Written off
OTCAR103 Dispute Management
Non-Trade Related Claims - Examples
Three methods for clearing claims with Credit Notes:
• Sales and Distribution Process - Quantity Related (Damage)• Sales and Distribution Process – Value Related (Freight)• Finance Process (Customer Penalty)
Damage Claim
Customer Penalty Claim
Freight Claim
OTCAR103 Dispute Management
Agenda
• Dispute Management Overview• Maintain Residuals and Dispute Cases• Non-Trade Related Claims Overview• Example: SD Process – Quantity (Damage)• Example: SD Process – Value (Freight)• Example: FI Process – Customer Penalty
OTCAR103 Dispute Management
SD Process – Quantity (Damage)
Scenario: Valid damage claim with no physical return of the goods
• Customer deducts for 50 CS of product that they claim were damaged• Residual exists with reference to the Invoice• McCain ultimately determines that this deduction is a valid claim• No goods are returned because the customer disposed of the product• Dispute Analyst uses Credit Memo Request Quantity (ZCQ) created with
reference to the original invoice to clear the deduction • Dispute Manager will approve the ZCQ request • Billing Due List creates the Credit Memo• Dispute Analyst attaches the Credit Memo to the Dispute Case• Dispute Analyst assigns the Credit Memo to the Deduction
• Dispute Case automatically closes
OTCAR103 Dispute Management
Instructor Demonstration
UDM_DISPUTE: Update Dispute Case
Scenario:
The customer has deducted and therefore a residual item exists in their customer account with a dispute case assigned to the residual.
Go to UDM_DISPUTE to update the following details:
• Status to ‘In Process’• All mandatory fields – Then Save• Record a note that confirms that Damage noted on POD• Update Status to ‘Valid’• Exit Dispute Management
OTCAR103 Dispute Management
Instructor Demonstration
Create Credit Memo Request – Quantity
Scenario:
The Customer’s claim is determined to be valid (POD notes the damage). The Dispute Analyst creates a Credit Memo Request – Quantity with reference to the invoice for the number of damaged cases.
OTCAR103 Dispute Management
Instructor Demonstration
Delete Billing Block
Scenario:
Dispute Manager approves the claim and removes the Billing Block – V.23.
OTCAR103 Dispute Management
Instructor Demonstration
Billing – Create Credit Memo
Scenario:
Run the Billing Due List (Order Related transactions only) and create the actual credit memos.
OTCAR103 Dispute Management
Instructor Demonstration
Attach Credit Note to Dispute Case – UDM_DISPUTE
Scenario:
Dispute Analyst enters the Dispute Management application – UDM_DISPUTE – to attach the Credit Note to the existing dispute case already attached to residual item.
OTCAR103 Dispute Management
Instructor Demonstration
Assign Credit Memo to Residual
Scenario:
Since the residual item (deduction) and credit memo now share a common dispute case ID, the Dispute Analyst can now assign the two documents to each other and clear them from the Customer A/R account.
OTCAR103 Dispute Management
Instructor Demonstration
Validate that Claim Updated and Closed – UDM_DISPUTE
Scenario:
Dispute Analyst navigates to Dispute Management application – UDM_DISPUTE – to validate that the dispute case status is now Closed.
OTCAR103 Dispute Management
Agenda
• Dispute Management Overview• Maintain Residuals and Dispute Cases• Non-Trade Related Claims Overview• Example: SD Process – Quantity (Damage)• Example: SD Process – Value (Freight)• Example: FI Process – Customer Penalty
OTCAR103 Dispute Management
SD Process – Value (Freight)
Scenario: Valid Freight claim notification (prior to deduction)
• Customer deducts the Amount of Billed Freight sent on McCain Invoice
• Customer claims that Billed Freight applied incorrectly to a CPU order
• Dispute Analyst determines claim is valid and updates dispute case• Dispute Analyst creates Credit Memo Request Value (ZCV) (not
created with reference)• Dispute Manager approves the ZCV request • Billing Due List creates the Credit Memo and financial postings• Dispute Analyst attaches the Credit Memo to the Dispute Case• Dispute Analyst assigns Credit Memo to Residual• Dispute Case automatically closes
OTCAR103 Dispute Management
Instructor Demonstration
UDM_DISPUTE: Update Dispute Case
Scenario:
The customer has deducted and therefore a residual item exists in their customer account with a dispute case assigned to the residual.
Go to UDM_DISPUTE to update the following details:
• Status to ‘In Process’• All mandatory fields – Then Save• Record a note that confirms that Billed Freight applied in error• Update Status to ‘Valid’• Exit Dispute Management
OTCAR103 Dispute Management
Instructor Demonstration
Create Credit Memo Request - Value
Scenario:
The Customer’s claim is determined to be valid (transportation group confirms that order was CPU). The Dispute Analyst creates a Credit Memo Request – Value for the amount of the freight surcharge incorrectly applied.
OTCAR103 Dispute Management
Instructor Demonstration
Delete Billing Block
Scenario:
Dispute Manager approves the claim and removes the Billing Block – V.23.
OTCAR103 Dispute Management
Instructor Demonstration
Billing – Create Credit Memo
Scenario:
Run the Billing Due List (Order Related transactions only) and create the actual credit memos.
OTCAR103 Dispute Management
Instructor Demonstration
Attach Credit Note to Dispute Case
Scenario:
Dispute Analyst enters the Dispute Management application – UDM_DISPUTE – to attach the Credit Note to the existing dispute case already attached to residual.
OTCAR103 Dispute Management
Instructor Demonstration
Assign Credit Memo to Residual
Scenario:
Since the residual item (deduction) and credit memo now share a common dispute case ID, the Dispute Analyst can now assign the two documents to each other and clear them from the Customer A/R account.
OTCAR103 Dispute Management
Instructor Demonstration
Validate that Claim Updated and Closed – UDM_DISPUTE
Scenario:
Dispute Analyst navigates to Dispute Management application – UDM_DISPUTE – to validate that the dispute case status is now Closed.
OTCAR103 Dispute Management
Agenda
• Dispute Management Overview• Maintain Residuals and Dispute Cases• Non-Trade Related Claims Overview• Example: SD Process – Quantity (Damage)• Example: SD Process – Value (Freight)• Example: FI Process – Customer Penalty
OTCAR103 Dispute Management
Process a Customer Penalty Claim
Scenario: Customer charges McCain for late delivery
• In the customer penalty claim scenario, you will learn what happens when the customer claims for credit due to a discrepancy in the delivery process.
• In this scenario, the discrepancy results in the customer penalizing McCain. Such discrepancies are resolved through creation of an FI Credit Memo which is not an Order Type but an Accounting transaction.
OTCAR103 Dispute Management
Process a Customer Penalty Claim (contd.)
Scenario: Customer charges McCain for late delivery
• Customer deducts 500.00 as a penalty for a late delivery• Dispute Analyst updates dispute case – UDM_DISPUTE – In process• Dispute Analyst determines claim is valid and updates dispute case• Dispute Analyst uses FI Credit Memo to resolve claim because this charge is
independent of the product quantity and pricing• Dispute Manager posts the FI Credit Memo to the Financials• Dispute Analyst attaches the Credit Memo to the Dispute Case• Dispute Analyst assigns the FI Credit to the residual• Dispute Case automatically closes
OTCAR103 Dispute Management
Instructor Demonstration
UDM_DISPUTE: Update Dispute Case
Scenario:
The customer has deducted and therefore a residual item exists in their customer account with a dispute case assigned to the residual.
Go to UDM_DISPUTE to update the following details:
• Status to ‘In Process’• Enter values in all mandatory fields – Then Save• Record a note that confirms that Carrier was late• Update Status to ‘Valid’• Exit Dispute Management
OTCAR103 Dispute Management
Instructor Demonstration
FI Credit Memo – Parked Doc - FV75
Scenario:
The Customer’s claim is determined to be valid (transportation group confirms that McCain carrier arrived late). The Dispute Analyst creates an FI Credit Memo for the amount of the penalty charged by the customer.
OTCAR103 Dispute Management
FI Credit Memo – Parked Doc - FV75
Scenario:
The Customer’s claim is determined to be valid (transportation group confirms that McCain carrier arrived late). The Dispute Analyst creates an FI Credit Memo for the amount of the penalty charged by the customer.
Hands-on Exercise
You have 30 minutes to complete this exercise.
OTCAR103 Dispute Management
Instructor Demonstration
Post FI Credit Memo (FBV0)
Scenario:
Dispute Manager reviews the FI Credit Memo and the claim file and posts the FI Credit Memo.
OTCAR103 Dispute Management
Instructor Demonstration
Attach Credit Note to Dispute Case
Scenario:
Dispute Analyst enters the Dispute Management application – UDM_DISPUTE – to attach the FI Credit Note to the existing dispute case already attached to the residual.
OTCAR103 Dispute Management
Instructor Demonstration
Assign Credit Memo to Residual
Scenario:
Since the residual item (deduction) and credit memo now share a common dispute case ID, the Dispute Analyst can now assign the two documents to each other and clear them from the Customer A/R account.
OTCAR103 Dispute Management
Instructor Demonstration
Validate the Updated and Closed Claim – UDM_DISPUTE
Scenario:
Dispute Analyst navigates to Dispute Management application – UDM_DISPUTE – to validate that the dispute case status is now Closed.
OTCAR103 Dispute Management
Questions?
?
OTCAR103 Dispute Management
New Terms in Dispute Management
Term Description
Claim A financial demand for an amount due. A claim can be submitted to McCain by Customers in the form of a notification (i.e. phone call, email, invoice, etc.) or a deduction
Dispute An unsettled / unsolved claim where both parties, customer and company are in disagreement regarding a particular transaction
SAP Dispute Case An object within the SAP ECC Dispute Management application where the details of a claim or disputed item are documented and categorized
Claim Notification A notification that is received when the customer presents McCain with a claim prior to deducting
Deduction A short payment against an invoice. The difference between the payment amount and the invoice amount is the deduction amount
Customer Invoice Claim
A claim that is received when the customer presents McCain with an invoice that levies a charge against McCain
OTCAR103 Dispute Management
New Terms in Dispute Management (cont’d)
Term Description
Trade vs. Non-Trade Claims
Trade related claims are mostly related to price deals, allowances, rebates and other promotional and contractual agreements. Non-trade related claims are related to logistics and pricing errors.
Return Orders A type of Sales Order for the return of goods by the business partner
Credit Memo Request – Quantity
A sales order type used to request a reduction in the customer AR account for product quantity discrepancies or damage. The request is not delivery relevant but it may involve an Inventory adjustment as a subsequent process. It is not yet a Credit Memo
Credit Memo Request – Value
A sales order type used to request a reduction in the customer AR account for value-related discrepancies (i.e. pricing, freight errors). The request is not delivery relevant and it will not involve an inventory movement. It is not yet a Credit Memo
OTCAR103 Dispute Management
New Terms in Dispute Management (cont’d)
Term Description
Debit Memo Request – Quantity
A sales order type used to request an increase in the customer AR account for product quantity discrepancies (typically overages). The request is not delivery relevant but it will involve an Inventory adjustment as a subsequent process. It is not yet a Debit Memo
Debit Memo Request – Value
A sales order type used to request an increase in the customer AR account for value-related discrepancies (i.e. pricing, freight errors). The request is not delivery relevant and it will not involve an inventory movement. It is not yet a Debit Memo
Miscellaneous FI Invoice
An accounting document that increases the customer AR account for non-inventory items, services or miscellaneous charges
Miscellaneous FI Credit
An accounting document that decreases the customer AR account for non-inventory items, services or miscellaneous charges
OTCAR103 Dispute Management
Roles and Responsibilities
Role Responsibility
Dispute Analyst Keeps track and resolves all disputed items whether they be notifications or deductions.
Dispute Manager Approves/declines claims submitted by Dispute Analyst and allocates Dispute Cases to Dispute Analysts.
Other Stakeholders Customers, McCain Inventory and warehouses, Carriers and third-party warehouses.
OTCAR103 Dispute Management
Business Process Flow – Claim and Dispute Management