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SAP ERPFinancial Supply ChainManagementSAP DisputeManagement 6.0Application Solution ManagementSAP ERP Financials

AgendaSAP Dispute Management – Business RequirementsFinancial Process IntegrationDispute Case DetailsDispute Resolution ProcessDeployment Options and AvailabilitySummary and Roadmap

AgendaSAP Dispute Management – Business RequirementsFinancial Process IntegrationDispute Case DetailsDispute Resolution ProcessDeployment Options and AvailabilitySummary and Roadmap

SAP Dispute Management – What Is It?SAP Dispute Management is part of SAP Financial Supply ChainManagementSAP Dispute Management provides functions for processingreceivables-related dispute casesIt supplements the following process chains in the stage betweeninvoice and payment if there are discrepancies with the customer: Sales Order – Delivery – Invoice – Payment Contract – Service Provision – Invoice – Payment SAP AG 2005, Title of Presentation / Speaker Name / 4

Disputed Invoices – ProblemsHigh DSO (Days Sales Outstanding)Difficulty in predicting cash flowHigh cost of solving these disputed invoicesDisputed invoices can indicate issues in the customerrelationship due to Quality problems Logistical problems Pricing Account relationship Disputed invoices can reduce customer profitability SAP AG 2005, Title of Presentation / Speaker Name / 5

Which Events Lead to Dispute Cases?Receivables-related dispute cases arise if customers deduct anamount from the invoiced amount that exceeds the differencetolerated by the selling company or hold back a paymentReasons for dispute can be justified: Trade promotion Goods were damaged Wrong price Late delivery Reason for dispute can be unjustified: Delivery was on time Pricing was right SAP AG 2005, Title of Presentation / Speaker Name / 6

Visibility of Dispute CasesWhen do selling companies notice the existence of disputes?Customer informs them about the deduction Call center contact Account manager contact LetterIncoming payment is an underpayment Cash accountant is postprocessing incoming payments Accounts receivable specialist posts incoming paymentsSAP Dispute Management 3.0 mainly supports disputes based onpayment deductions SAP AG 2005, Title of Presentation / Speaker Name / 7

What is the Conclusion?Dispute cases can arise in different organizational units, such asfinancial department, account management, and so onSelling company must be able to enter and process disputecases across different departmentsIntegration in financial and logistical processes is basis forprocess optimizationProcess management is required for dispute process SAP AG 2005, Title of Presentation / Speaker Name / 8

How Does SAP Dispute Management Help?SAP Dispute Management controls and streamlines the disputecase processAs central component for handling dispute cases, SAP DisputeManagement enables cross-department dispute resolutionSAP Dispute Management is integrated in financial but also inlogistical processesSAP Dispute Management organizes and stores all informationand documents related to a dispute caseSAP Dispute Management includes sophisticated reporting Detect quality issues Control workload Track dispute process Deductions per customer SAP AG 2005, Title of Presentation / Speaker Name / 9

AgendaSAP Dispute Management – Business RequirementsFinancial Process IntegrationDispute Case DetailsDispute Resolution ProcessDeployment Options and AvailabilitySummary and Roadmap

What does Process Integration mean?Offer dispute management functionality in financial processesSimplify entry of dispute casesFacilitate and accelerate daily work of accountantsEnter dispute cases where they ariseNo time delay between discovering disputes and openingdispute casesAutomatic update of dispute cases by financial transactionsUp-to-date information available for disputed itemNo additional manual effortCentral view of dispute case SAP AG 2005, Title of Presentation / Speaker Name / 11

Integration in Financials ProcessesSAP Dispute Management is integrated in those financialprocesses of SAP Financials Accounts Receivable* wheredisputed invoices typically become visible:Post incoming paymentsDisplay line item listClear accountBank statement postprocessingAutomatic creation of dispute cases for residual items created bylock box file or electronic bank statementThe system automatically copies amounts from FI document intodispute case and links corresponding documents* This presentation does not contain integration of SAP Dispute Management withSAP Contract Accounts Receivables and Payables (FI-CA) SAP AG 2005, Title of Presentation / Speaker Name / 12

Line Item Display and Dispute Case IntegrationCreate and display dispute caseCreate dispute caseIntegrate dispute informationin line item layout SAP AG 2005, Title of Presentation / Speaker Name / 13

Updating Dispute Management InformationSAP Dispute Management is automatically informed of financialtransactions such asIncoming payment for disputed itemOffset credit memo for disputed amountManual clearing postingsThe update is visible in the dispute caseIn corresponding amount fieldsAs linked objects in specific folders SAP AG 2005, Title of Presentation / Speaker Name / 14

Example: Create Dispute Case for Short PaymentProcess incomingpaymentsyesShortPayment?Assign invoiceand post residual itemOpen dispute casefor residual itemnoGet information fromcustomer responsible(e.g. account manager)Clear invoiceIs disputereasonknown?noyesClear residualitem and closedispute caseCreate sign reason and linkrelated documents(fax, letter.)noWrite off andclose dispute case SAP AG 2005, Title of Presentation / Speaker Name / 15yesWriteoff dispute?noHand over toCollections

AgendaSAP Dispute Management – Business RequirementsFinancial Process IntegrationDispute Case DetailsDispute Resolution ProcessDeployment Options and AvailabilitySummary and Roadmap

What Is A Dispute Case?DisputeCaseis a new business object that Has descriptive attributes Is like a folder that links all relevant documents andobjects Can be processed across multiple departments Supports different communication channels SAP AG 2005, Title of Presentation / Speaker Name / 17

Dispute Case – Central Unit for all ActivitiesSummarizes and structures all dispute-related data Attributes (status, reason, current processor, and so on) Notes Action log Linked objects (customer, invoice, residual items, proof of delivery) CreatedcorrespondenceIs the control object of the disputed item Assign Statusdifferent roles (processor, person responsible)concept Processingdeadlines for next processors and planned end date EscalationCan be accessed and processed by all authorized employees Accountant Collection DisputeAgentManger others SAP AG 2005, Title of Presentation / Speaker Name / 18

Dispute Case: ExampleReason &StatusAmount FieldsRolesCustomerContact PersonNotes and Log SAP AG 2005, Title of Presentation / Speaker Name / 19Linked Objects

Dispute Case DetailsStatusNotesAction tionReferencedobjects SAP AG 2005, Title of Presentation / Speaker Name / 20Customer

Reason and Status of Dispute CasesReason specifies cause of disputed item: Damaged Tradegoodspromotion IncorrectinvoiceStatus specifies current state of processing: Open Inprocess ResolvedStatus concept for status controlStatus and reason can be freely defined in Customizing SAP AG 2005, Title of Presentation / Speaker Name / 21

Amount Fields of Dispute CaseOriginal disputed amount Amountdisputed when the dispute case was createdDisputed amount Amountthat is currently disputed (different to original disputed amountbecause of payments, credit memos, write-offs)Paid Amountof the original disputed amount that has been paidCredited Amountof the original disputed amount that has been creditedCleared manually Amountthat has been cleared manuallyAutomatically written off Amountthat has been written off automatically SAP AG 2005, Title of Presentation / Speaker Name / 22

Notes and Action LogNotes can be created to document the dispute caseDifferent note types can be freely defined in Customizing: Comments Replies Activityinstruction OthersNotes are saved together with name of processor and timeExternal notes can be used for correspondence with CustomerAction log shows Alltransactions per dispute case Allchanges of attributes (fields of dispute case) Selectedview on changes (example, filter changes by user, by field) SAP AG 2005, Title of Presentation / Speaker Name / 23

Customer Contact DataCustomer contact data can be stored in the dispute caseThere are two options how to maintain customer contact data Select contact data from customer master data Enter contact data directly in the dispute caseCustomer contact data comprises Name e-mail Fax Telephone Postal address (only stored in customer master data)Customer contact person is used as receiver of customercorrespondence SAP AG 2005, Title of Presentation / Speaker Name / 24

Referenced ObjectsBusiness PartnerDisputed ObjectsResolved ObjectsDispute CaseItems Assigned duringClearingOther ObjectsMiscellaneous SAP AG 2005, Title of Presentation / Speaker Name / 25

AgendaSAP Dispute Management – Business RequirementsFinancial Process IntegrationDispute Case DetailsDispute Resolution ProcessDeployment Options and AvailabilitySummary and Roadmap

One Dispute Case – Several RolesUp to three roles can be linked per dispute caseCoordinator monitors and coordinates dispute case processing. Heor she is the central company internal contact of a dispute case Example: Dispute Manager of a business unitProcessor is the person who is assigned to the next activity Example: Delivery Manager to confirm wrong deliveryPerson Responsible is the person accountable if the dispute casecannot be resolved and who receives escalation Example: Account Manager SAP AG 2005, Title of Presentation / Speaker Name / 27

Cross-department Dispute Case ProcessingEmployees in Accounts Receivable control the dispute resolutionprocess Coordinators and professional processors work directly in the SAPDispute Case Organizer ‘My Dispute Cases’ used as work list Initiate escalation, automatic write-off, mass changes and so onOther employees (occasional processors) get involved via SAPWorkflow Occasional processors gets e-mail notification about new dispute case Workflow inbox used as (universal) work list Process the work item (no need to access Dispute Management) Allmain dispute case information available Navigation to dispute case and billing document possible Upload and download of documents (attachments) possible Creation of notes Re-direct dispute case to coordinator or forward to next processor SAP AG 2005, Title of Presentation / Speaker Name / 28

Workflow ExampleJohn MillerShipping Clerk216 Read e-mail Access workflow inbox and Assign Tom Busy asexecute work item3next processor Confirm late deliveryTom Busy Ask Tom to decide Return dispute case to SallyAccount Managerabout dispute Work item is created ande-mail is sent Assign John Miller asnext processor Asks John Miller toconfirm late delivery Work item is created ande-mail is sent to inform John Sally Smith Read e-mail Access workflow inbox andexecute work item Post credit memo Return dispute case to Sally Read e-mail Access workflow inbox andDispute Manager (coordinator) execute work item Decide that credit memo shouldbe granted Return dispute case to Sally45 Assign Hans Doe asnext processor Ask Hans to post credit memo Work item is created and e-mail sent outHans DoeAccounts Receivable ClerkSAP AG 2005, Title of Presentation / Speaker Name / 29

Work Item (Example)UploadLink to dispute caseAttachmentsLink to billing document SAP AG 2005, Title of Presentation / Speaker Name / 30

CorrespondenceCorrespondence can be created Automatically by events like Createdispute cases Close dispute cases Events that can be defined on project level Manually by the user when processing the dispute caseSAP delivers standard customer correspondence for Fax, e-Mail, and letter Notificationthat a dispute case has been created Notification that dispute case has been closed Query regarding dispute case Information about dispute case Customers can create their own correspondenceUse Smart forms Data available for correspondence zzzzAll attributesExternal notesObject keys of objects stored in the dispute case folders (case record) SAP AG 2005, Title of Presentation / Speaker Name / 31

Manual Correspondence (Example)Customer Contact PersonSelect Communication TypeSelectCorrespondenceSelectexternal notes SAP AG 2005, Title of Presentation / Speaker Name / 32

Example For Request for InformationNotes are inserted SAP AG 2005, Title of Presentation / Speaker Name / 33

EscalationEscalation is an automatically created internal correspondence usedto inform employees within the company about a critical status ofthe dispute case Escalation is initiated by setting an escalation reason Standard communication type is e-mailSet up escalation process in implementation project Business Add In to define rules who should receive escalation e-mail Define other conditions that should initiate an escalation SAP AG 2005, Title of Presentation / Speaker Name / 34

Functions in Dispute ManagementCreate dispute cases in Dispute Case Organizer Create dispute case in Organizer due to a customer contact Open items can be added at a later point of timeSearch functionality Flexible search of dispute cases based on attributes Filter and sort functionality Pre-defined searches available (per role, self defined with variants)Mass activities Changes of attributes including setting escalation reason Automatic write-off an closing of dispute cases Charge cost center of person responsible with amount written-offUsability History of viewed objects Resubmission of dispute cases Add dispute cases to favorites SAP AG 2005, Title of Presentation / Speaker Name / 35

ReportingAd hoc reporting in Dispute Management List-based reporting Flexible layoutSearch, filter functionality Data available for reporting All attributes of dispute case Editing of dispute cases from list possibleIntegration with Business Information Warehouse Online Analytical Processing (OLAP) reporting DrilldownSlice and dice Available data for reporting All attributesLinked business partnerDisputed and resolved items (history)Cross-component data, for example, master data of business partner SAP AG 2005, Title of Presentation / Speaker Name / 36

Integration with SAP Biller DirectIntegration with SAP Biller Direct* Create dispute cases directly from SAP Biller Direct Forinvoices For payment deductions View status of dispute cases Upload of documents to dispute cases Download of documents from dispute cases View documents attached to dispute cases in SAP Biller DirectBenefits: Improve customer interaction Speed up dispute resolution process*Not available for integration with Accounts Receivable in SAP R/3 4.6C SAP AG 2005, Title of Presentation / Speaker Name / 37

Integration with SAP Collections ManagementIntegration with SAP Collections Management* Create dispute cases directly from Collections Management Forinvoices Or existing residual amounts to invoices View status of dispute cases from Collections Management Dispute cases that are to be collected can be used in collection rules tobring customers on collection worklistsBenefits Improve cash collection by speeding up dispute resolution and betteroverview of customer account Seamless integration of the processes dispute resolution and cashcollection*Not available for integration with Accounts Receivable in SAP R/3 4.6C SAP AG 2005, Title of Presentation / Speaker Name / 38

Flexible Customer EnhancementsControl screen layout of dispute case (attributes) Field control (mandatory, hidden, modifiable) Field grouping Customer specific attributes can be added in customer includeEnhance dispute folder model Add new folders Control document types per folderBusiness Add Ins (BAdIs) Within Dispute Management Within FI-AR, for example Defaultvalues for dispute case (e.g. processor, coordinator, reason) Customer-defined Customersubscreenenhancement for automatic write-off SAP AG 2005, Title of Presentation / Speaker Name / 39

AgendaSAP Dispute Management – Business RequirementsFinancial Process IntegrationDispute Case DetailsDispute Resolution ProcessDeployment Options and AvailabilitySummary and Roadmap

Deployment ScenariosSAP Dispute Management 6.0 can be set up in two different waysOne-System Scenario Accounts Receivables Accounting in SAP ERP 6.0Multiple-System Scenario Accounts Receivable Accounting in SAP ERP 6.0 Accounts Receivable Accounting in SAP ERP 2004 Accounts Receivable Accounting in SAP R/3 Enterprise 4.7 Accounts Receivable Accounting in SAP R/3 4.6c SAP AG 2005, Title of Presentation / Speaker Name / 41

Deployment for SAP ERP 6.0 (One System)SAP ECC 6.0(FI-AR)*SAP DisputeManagement6.0SAP Netweaver 2004s*SAP ECC 6.0 already comprises Financial Basis 6.0 SAP AG 2005, Title of Presentation / Speaker Name / 42

Deployment for SAP ERP 2004SAP ECC 5.0ALESAP DisputeManagement6.0SAP ECC 6.0*SAP Netweaver 2004SAP Netweaver 2004sAccounts Receivable SystemCollections Management System*If you additionally want to use SAP Collections Management, you need to install SAP ECC 6.0SAP ECC 6.0 already comprises Financial Basis 6.0 SAP AG 2005, Title of Presentation / Speaker Name / 43

Deployment for SAP R/3 Enterprise 4.7SAP R/3 Enterprise4.7ALESAP DisputeManagement6.0SAP ECC 6.0*SAP Web AS 6.20SAP Netweaver 2004s*If you additionally want to use SAP Collections Management, you need to install SAP ECC 6.0SAP ECC 6.0 already comprises Financial Basis 6.0 SAP AG 2005, Title of Presentation / Speaker Name / 44

Deployment for SAP R/3 4.6cALESAP R/3 4.6cSAP DisputeManagement6.0SAP ECC 6.0*SAP Basis 4.6cSAP Netweaver 2004s*If you plan to also use SAP Collections Management after your Accounts Receivable system has been upgraded, please readinstallation note 859994 section ‘dependencies with SAP Collections Management’ SAP AG 2005, Title of Presentation / Speaker Name / 45

AvailabilitySAP Dispute Management 6.0 is part of the ramp-up for SAP ERP 6.0Ramp-up started October 2005 SAP AG 2005, Title of Presentation / Speaker Name / 46

AgendaSAP Dispute Management – Business RequirementsFinancial Process IntegrationDispute Case DetailsDispute Resolution ProcessDeployment Options and AvailabilitySummary and Roadmap

SAP Dispute Management - Business BenefitsReduce DSOImprove liquidity and cash forecastOptimize, streamline and accelerate cross-departmentdispute resolution which is today usually a manual and timeconsuming process Workflow integration AutomationImprove customer relationship Focused queries Quicker resolution of disputesGain information about flaws in existing processes thatfrequently lead to disputes Basis for improvement of processes Discover potential to avoid disputes SAP AG 2005, Title of Presentation / Speaker Name / 48

Roadmap SAP Financial Supply Chain ManagementSAPFSCM 2.0SAP ERP 2004(incl. SAP FSCM 3.0)SAP ERP 6.0(incl. SAP FSCM 6.0)Ramp-UpQ2/2004PlammedQ3/2005Release to CustomerQ3/2003Focus: Biller DirectDispute Management integration, collection authorization Dispute ManagementAutomation & prioritization, workflow integration, correspondence Collections ManagementManual worklists, promises to pay, integration with Dispute Mgmt. Credit ManagementCredit Limit Check, Credit Analysis, Credit Eventing, Workflow In-House CashPrima Nota, Integration with Cash and Treasury & Risk Mgmt T