CEU+BAR Dispute+Management+Workshop v1

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
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 nontrade 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
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
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.
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.
Dispute Management Dispute Case

The following screenshots displays a dispute case:
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
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 Customers 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

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

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
Claim Category
Customer claims are presented to McCain in two ways:
Claim Notification Claim made prior to Deducting
Deduction
Recall that claim category is one of the attributes captured in the Dispute Case.
Customer Claim Types and SAP

The following flowchart displays the customer claim types:
Customer Claim Types
SAP
Billing and Account Receivables (ECC) Trade (Vistex)
Non-Trade Related
Claim Notification Trade Related
Invoice,
Dispute Case
Invoice
Trade related Claim
Non-Trade Related Deduction Trade Related
Deduction
Dispute Case
Deduction
Dispute Case
Trade related Claim
Agenda

Dispute Case End-to-End Process

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.
Claim
Claim Type Deduction or Notification
Dispute Case Creation

(new)
Investigation and Validation
Resolution Transaction
Clearing Open Items and Closing the Dispute Case
Claims Managed by McCain

SAP system for McCain manages two broad categories of claims:
Non Trade Related (logistics or pricing errors)
Damage Shortage Overage Price discrepancy Freight discrepancy Cash discount discrepancy
Trade Related (Price deals, allowances, rebates, and promotional or contract agreements)
Vistex Claim Deduction Vistex Claim Invoice Claim
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 Deduction 3. $1,000 Customer Penalty
Residual needs to be split into 3 new residuals with dispute cases.
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.
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.
Agenda

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
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
Standard Order (SD to FI)

The following flowchart displays the Standard Order process.
Sales & Distribution Module

Order Delivery Billing Document
Finance Module
Accounting Document
COPA
SD Process Returns
The following flowchart displays the Standard Order Returns process.

Return Order Delivery Billing Document
Finance Module
Accounting Document
COPA
V.23
SD Process Debit/Credit Memos

The following flowchart displays the Standard Order Debit/Credit Memo process.

Debit/Credit Request
Finance Module
Accounting Document
Billing Document
V.23
COPA
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
FI Credit (FV75)/FI Invoice (FV70)

The following flowchart displays the FI Credit FI Invoice process.
Finance Module ONLY No SD

Parked Document FV75/FV70
FBVO
Posted Accounting Document
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
Clearing and Closing (contd)

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
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
Agenda

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
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
Create Credit Memo Request Quantity
Scenario:
The Customers 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.
Delete Billing Block
Scenario:
Dispute Manager approves the claim and removes the Billing Block V.23.
Billing Create Credit Memo
Scenario:
Run the Billing Due List (Order Related transactions only) and create the actual credit memos.
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.
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.
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.
Agenda

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
Scenario:
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
Create Credit Memo Request - Value
Scenario: The Customers 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.
Delete Billing Block
Scenario: Dispute Manager approves the claim and removes the Billing Block V.23.
Billing Create Credit Memo
Scenario: Run the Billing Due List (Order Related transactions only) and create the actual credit memos.
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.
Scenario:
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.
Agenda

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.
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
Scenario:
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
FI Credit Memo Parked Doc - FV75
Scenario: The Customers 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
FI Credit Memo Parked Doc - FV75
Scenario:
The Customers 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.
You have 30 minutes to complete this exercise.

Post FI Credit Memo (FBV0)
Scenario: Dispute Manager reviews the FI Credit Memo and the claim file and posts the FI Credit Memo.
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.
Scenario:
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.
Questions?
New Terms in Dispute Management

Term
Claim
Description
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 An unsettled / unsolved claim where both parties, customer and company are in disagreement regarding a particular transaction An object within the SAP ECC Dispute Management application where the details of a claim or disputed item are documented and categorized A notification that is received when the customer presents McCain with a claim prior to deducting
Dispute SAP Dispute Case Claim Notification
Deduction
Customer Invoice Claim
A short payment against an invoice. The difference between the payment amount and the invoice amount is the deduction amount
A claim that is received when the customer presents McCain with an invoice that levies a charge against McCain
New Terms in Dispute Management (contd)

Term
Trade vs. Non-Trade Claims Return Orders Credit Memo Request Quantity
Description
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. A type of Sales Order for the return of goods by the business partner 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 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
Credit Memo Request Value
New Terms in Dispute Management (contd)

Term
Debit Memo Request Quantity
Description
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 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 An accounting document that increases the customer AR account for non-inventory items, services or miscellaneous charges An accounting document that decreases the customer AR account for non-inventory items, services or miscellaneous charges
Debit Memo Request Value Miscellaneous FI Invoice Miscellaneous FI Credit
Roles and Responsibilities

Role
Dispute Analyst Dispute Manager Other Stakeholders
Responsibility
Keeps track and resolves all disputed items whether they be notifications or deductions. Approves/declines claims submitted by Dispute Analyst and allocates Dispute Cases to Dispute Analysts. Customers, McCain Inventory and warehouses, Carriers and third-party warehouses.
Business Process Flow Claim and Dispute Management

CEU+BAR Dispute+Management+Workshop v1

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Dispute Management

OTCAR103 Dispute Management

OTCAR103 Dispute Management

Key Changes to Dispute Management

OTCAR103 Dispute Management

Key Benefits for Dispute Management

Standardized Dispute and Claim Management processes

An integrated claims system saves work by removing the

Effectively monitor and control deductions claimed by

Improve Business visibility of Dispute Cases by root cause,

OTCAR103 Dispute Management

Dispute Management Overview

OTCAR103 Dispute Management

Dispute Management Overview (contd.)

OTCAR103 Dispute Management

Dispute Management Dispute Case

OTCAR103 Dispute Management

Dispute Management Dispute Case

OTCAR103 Dispute Management

Dispute Management Dispute Case (contd.)

OTCAR103 Dispute Management

Dispute Management Dispute Case (contd.)

OTCAR103 Dispute Management

Dispute Management Dispute Case (contd.)

OTCAR103 Dispute Management

OTCAR103 Dispute Management

Customer Claim Types and SAP

Customer Claim Types

Trade related Claim

Non-Trade Related Deduction Trade Related

Trade related Claim

OTCAR103 Dispute Management

OTCAR103 Dispute Management

Dispute Case End-to-End Process

Claim Type Deduction or Notification

Dispute Case Creation

Investigation and Validation

Clearing Open Items and Closing the Dispute Case

OTCAR103 Dispute Management

Claims Managed by McCain

Non Trade Related (logistics or pricing errors)

OTCAR103 Dispute Management

Residual needs to be split into 3 new residuals with dispute cases.

OTCAR103 Dispute Management

OTCAR103 Dispute Management

OTCAR103 Dispute Management

OTCAR103 Dispute Management

Non-Trade Related Claims - Overview

To resolve Valid Non-Trade Claims there are two process flows:

OTCAR103 Dispute Management

Sales and Distribution (SD) Process

OTCAR103 Dispute Management

Standard Order (SD to FI)

Sales & Distribution Module

OTCAR103 Dispute Management

Sales & Distribution Module

OTCAR103 Dispute Management

SD Process Debit/Credit Memos

Sales & Distribution Module

OTCAR103 Dispute Management

Financial (FI) Process

OTCAR103 Dispute Management

FI Credit (FV75)/FI Invoice (FV70)

Finance Module ONLY No SD