SAP Dispute Management 6.0

Transcription

1 SAP ERP Financial Supply Chain Management SAP Dispute Management 6.0 Application Solution Management SAP ERP Financials

2 Agenda SAP Dispute Management Business Requirements Financial Process Integration Dispute Case Details Dispute Resolution Process Deployment Options and Availability Summary and Roadmap

3 Agenda SAP Dispute Management Business Requirements Financial Process Integration Dispute Case Details Dispute Resolution Process Deployment Options and Availability Summary and Roadmap

4 SAP Dispute Management What Is It? SAP Dispute Management is part of SAP Financial Supply Chain Management SAP Dispute Management provides functions for processing receivables-related dispute cases It supplements the following process chains in the stage between invoice 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

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

6 Which Events Lead to Dispute Cases? Receivables-related dispute cases arise if customers deduct an amount from the invoiced amount that exceeds the difference tolerated by the selling company or hold back a payment Reasons 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

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

8 What is the Conclusion? Dispute cases can arise in different organizational units, such as financial department, account management, and so on Selling company must be able to enter and process dispute cases across different departments Integration in financial and logistical processes is basis for process optimization Process management is required for dispute process SAP AG 2005, Title of Presentation / Speaker Name / 8

9 How Does SAP Dispute Management Help? SAP Dispute Management controls and streamlines the dispute case process As central component for handling dispute cases, SAP Dispute Management enables cross-department dispute resolution SAP Dispute Management is integrated in financial but also in logistical processes SAP Dispute Management organizes and stores all information and documents related to a dispute case SAP 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

10 Agenda SAP Dispute Management Business Requirements Financial Process Integration Dispute Case Details Dispute Resolution Process Deployment Options and Availability Summary and Roadmap

11 What does Process Integration mean? Offer dispute management functionality in financial processes Simplify entry of dispute cases Facilitate and accelerate daily work of accountants Enter dispute cases where they arise No time delay between discovering disputes and opening dispute cases Automatic update of dispute cases by financial transactions Up-to-date information available for disputed item No additional manual effort Central view of dispute case SAP AG 2005, Title of Presentation / Speaker Name / 11

12 Integration in Financials Processes SAP Dispute Management is integrated in those financial processes of SAP Financials Accounts Receivable* where disputed invoices typically become visible: Post incoming payments Display line item list Clear account Bank statement postprocessing Automatic creation of dispute cases for residual items created by lock box file or electronic bank statement The system automatically copies amounts from FI document into dispute case and links corresponding documents * This presentation does not contain integration of SAP Dispute Management with SAP Contract Accounts Receivables and Payables (FI-CA) SAP AG 2005, Title of Presentation / Speaker Name / 12

13 Line Item Display and Dispute Case Integration Create and display dispute case Create dispute case Integrate dispute information in line item layout SAP AG 2005, Title of Presentation / Speaker Name / 13

14 Updating Dispute Management Information SAP Dispute Management is automatically informed of financial transactions such as Incoming payment for disputed item Offset credit memo for disputed amount Manual clearing postings The update is visible in the dispute case In corresponding amount fields As linked objects in specific folders SAP AG 2005, Title of Presentation / Speaker Name / 14

15 Example: Create Dispute Case for Short Payment Process incoming payments Short Payment? yes Assign invoice and post residual item Open dispute case for residual item no Clear invoice Get information from customer responsible (e.g. account manager) no Is dispute reason known? yes Clear residual item and close dispute case Create credit memo yes Dispute justified? Investigate dispute Assign reason and link related documents (fax, letter..) no Write off and close dispute case yes Write off dispute? no Hand over to Collections SAP AG 2005, Title of Presentation / Speaker Name / 15

16 Agenda SAP Dispute Management Business Requirements Financial Process Integration Dispute Case Details Dispute Resolution Process Deployment Options and Availability Summary and Roadmap

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

18 Dispute Case Central Unit for all Activities Summarizes 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) Created correspondence Is the control object of the disputed item Assign different roles (processor, person responsible) Status concept Processing deadlines for next processors and planned end date Escalation Can be accessed and processed by all authorized employees Accountant Collection Agent Dispute Manger others SAP AG 2005, Title of Presentation / Speaker Name / 18

19 Dispute Case: Example Reason & Status Amount Fields Roles Notes and Log Linked Objects Customer Contact Person SAP AG 2005, Title of Presentation / Speaker Name / 19

20 Dispute Case Details Status Notes Reason Action Log Priority Amount fields Escalation Customer contact Referenced objects Customer SAP AG 2005, Title of Presentation / Speaker Name / 20

21 Reason and Status of Dispute Cases Reason specifies cause of disputed item: Damaged goods Trade promotion Incorrect invoice Status specifies current state of processing: Open In process Resolved Status concept for status control Status and reason can be freely defined in Customizing SAP AG 2005, Title of Presentation / Speaker Name / 21

22 Amount Fields of Dispute Case Original disputed amount Amount disputed when the dispute case was created Disputed amount Paid Amount that is currently disputed (different to original disputed amount because of payments, credit memos, write-offs) Amount of the original disputed amount that has been paid Credited Amount of the original disputed amount that has been credited Cleared manually Amount that has been cleared manually Automatically written off Amount that has been written off automatically SAP AG 2005, Title of Presentation / Speaker Name / 22

23 Notes and Action Log Notes can be created to document the dispute case Different note types can be freely defined in Customizing: Comments Replies Activity instruction Others Notes are saved together with name of processor and time External notes can be used for correspondence with Customer Action log shows All transactions per dispute case All changes of attributes (fields of dispute case) Selected view on changes (example, filter changes by user, by field) SAP AG 2005, Title of Presentation / Speaker Name / 23

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

25 Referenced Objects Business Partner Disputed Objects Resolved Objects Dispute Case Items Assigned during Clearing Other Objects Miscellaneous SAP AG 2005, Title of Presentation / Speaker Name / 25

26 Agenda SAP Dispute Management Business Requirements Financial Process Integration Dispute Case Details Dispute Resolution Process Deployment Options and Availability Summary and Roadmap

27 One Dispute Case Several Roles Up to three roles can be linked per dispute case Coordinator monitors and coordinates dispute case processing. He or she is the central company internal contact of a dispute case Example: Dispute Manager of a business unit Processor is the person who is assigned to the next activity Example: Delivery Manager to confirm wrong delivery Person Responsible is the person accountable if the dispute case cannot be resolved and who receives escalation Example: Account Manager SAP AG 2005, Title of Presentation / Speaker Name / 27

28 Cross-department Dispute Case Processing Employees in Accounts Receivable control the dispute resolution process Coordinators and professional processors work directly in the SAP Dispute Case Organizer My Dispute Cases used as work list Initiate escalation, automatic write-off, mass changes and so on Other employees (occasional processors) get involved via SAP Workflow Occasional processors gets notification about new dispute case Workflow inbox used as (universal) work list Process the work item (no need to access Dispute Management) All main 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

29 Workflow Example John Miller Shipping Clerk 1 Assign John Miller as next processor Asks John Miller to confirm late delivery Work item is created and is sent to inform John 6 2 Read Access workflow inbox and execute work item Post credit memo Return dispute case to Sally SAP AG 2005, Title of Presentation / Speaker Name / 29 Read Access workflow inbox and execute work item Confirm late delivery Return dispute case to Sally Sally Smith Dispute Manager (coordinator) Hans Doe Accounts Receivable Clerk 5 3 Assign Tom Busy as next processor Ask Tom to decide about dispute Work item is created and is sent 4 Tom Busy Account Manager Read Access workflow inbox and execute work item Decide that credit memo should be granted Return dispute case to Sally Assign Hans Doe as next processor Ask Hans to post credit memo Work item is created and sent out

30 Work Item (Example) Upload Link to dispute case Attachments Link to billing document SAP AG 2005, Title of Presentation / Speaker Name / 30

31 Correspondence Correspondence can be created Automatically by events like Create dispute cases Close dispute cases Events that can be defined on project level Manually by the user when processing the dispute case SAP delivers standard customer correspondence for Fax, , and letter Notification that 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 correspondence Use Smart forms Data available for correspondence All attributes External notes Object keys of objects stored in the dispute case folders (case record) SAP AG 2005, Title of Presentation / Speaker Name / 31

32 Manual Correspondence (Example) Customer Contact Person Select Communication Type Select Correspondence Select external notes SAP AG 2005, Title of Presentation / Speaker Name / 32

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

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

35 Functions in Dispute Management Create 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 time Search 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-off Usability History of viewed objects Resubmission of dispute cases Add dispute cases to favorites SAP AG 2005, Title of Presentation / Speaker Name / 35

36 Reporting Ad hoc reporting in Dispute Management List-based reporting Flexible layout Search, filter functionality Data available for reporting All attributes of dispute case Editing of dispute cases from list possible Integration with Business Information Warehouse Online Analytical Processing (OLAP) reporting Drilldown Slice and dice Available data for reporting All attributes Linked business partner Disputed and resolved items (history) Cross-component data, for example, master data of business partner SAP AG 2005, Title of Presentation / Speaker Name / 36

37 Integration with SAP Biller Direct Integration with SAP Biller Direct* Create dispute cases directly from SAP Biller Direct For invoices 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 Direct Benefits: 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

38 Integration with SAP Collections Management Integration with SAP Collections Management* Create dispute cases directly from Collections Management For invoices 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 to bring customers on collection worklists Benefits Improve cash collection by speeding up dispute resolution and better overview of customer account Seamless integration of the processes dispute resolution and cash collection *Not available for integration with Accounts Receivable in SAP R/3 4.6C SAP AG 2005, Title of Presentation / Speaker Name / 38

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

40 Agenda SAP Dispute Management Business Requirements Financial Process Integration Dispute Case Details Dispute Resolution Process Deployment Options and Availability Summary and Roadmap

41 Deployment Scenarios SAP Dispute Management 6.0 can be set up in two different ways One-System Scenario Accounts Receivables Accounting in SAP ERP 6.0 Multiple-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

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

43 Deployment for SAP ERP 2004 SAP ECC 5.0 ALE SAP Dispute Management 6.0 SAP ECC 6.0* SAP Netweaver 2004 SAP Netweaver 2004s Accounts Receivable System Collections Management System *If you additionally want to use SAP Collections Management, you need to install SAP ECC 6.0 SAP ECC 6.0 already comprises Financial Basis 6.0 SAP AG 2005, Title of Presentation / Speaker Name / 43

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

45 Deployment for SAP R/3 4.6c SAP R/3 4.6c ALE SAP Dispute Management 6.0 SAP ECC 6.0* SAP Basis 4.6c SAP Netweaver 2004s *If you plan to also use SAP Collections Management after your Accounts Receivable system has been upgraded, please read installation note section dependencies with SAP Collections Management SAP AG 2005, Title of Presentation / Speaker Name / 45

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

47 Agenda SAP Dispute Management Business Requirements Financial Process Integration Dispute Case Details Dispute Resolution Process Deployment Options and Availability Summary and Roadmap

48 SAP Dispute Management - Business Benefits Reduce DSO Improve liquidity and cash forecast Optimize, streamline and accelerate cross-department dispute resolution which is today usually a manual and timeconsuming process Workflow integration Automation Improve customer relationship Focused queries Quicker resolution of disputes Gain information about flaws in existing processes that frequently lead to disputes Basis for improvement of processes Discover potential to avoid disputes SAP AG 2005, Title of Presentation / Speaker Name / 48

49 Roadmap SAP Financial Supply Chain Management SAP FSCM 2.0 Release to Customer Q3/2003 SAP ERP 2004 (incl. SAP FSCM 3.0) Ramp-Up Q2/2004 SAP ERP 6.0 (incl. SAP FSCM 6.0) Plammed Q3/2005 Focus: Biller Direct Dispute Management integration, collection authorization Dispute Management Automation & prioritization, workflow integration, correspondence Collections Management Manual worklists, promises to pay, integration with Dispute Mgmt. Credit Management Credit Limit Check, Credit Analysis, Credit Eventing, Workflow In-House Cash Prima Nota, Integration with Cash and Treasury & Risk Mgmt Treasury & Risk Mgmt New instruments for forex and derivatives, Hedge Accounting, enhancements in Market and Credit Risk Analyzer SAP AG 2005, Title of Presentation / Speaker Name / 49 Focus: Biller Direct Improved integration with Dispute Management, super user Collections Management Automatic worklists, collection rules and strategies, resubmissions, customer contacts Credit Management Enhanced reporting Treasury & Risk Management Debt Management, Hedge Management, enhanced reporting

50 Analyst Quotes (1) The new functionality will help streamline finance business processes that for decades have been internal and based entirely in the back office... SAP will break up a monolithic R/3 backbone into a series of components... SAP is serious about developing sell-side and marketplace functionality in financial settlement and billing. (AMR, 2001)... a $ 10bn firm could save approximately $ 110 million anually by employing a next-generation in-house bank solution with a payment factory module. (Killen & Associates, 2001) SAP AG 2005, Title of Presentation / Speaker Name / 50

51 Analyst Quotes (2) This ( ) is a large step toward the vision of the automated financial supply chain. It s the SAP Financials catalyst that will set off a whole series of events that will fundamentally change how companies financially collaborate in the future. ( ) It is a fundamental building block necessary for the automation of the financial supply chain, in which money and financial information flow hand-in-hand with goods and services. EBPP/EIPP can be an effective tool to accelerate cash flow and reduce Days Sales Outstanding (DSO) - a metric every CFO wants to improve. (AMR, 2001) SAP AG 2005, Title of Presentation / Speaker Name / 51

52 Analyst Quotes (3) A simple piece of advice for CFOs considering EIPP: Go with what -- and who you already know ( ) there s little reason for a B2B buyer or seller to bring in an unproven EIPP vendor when you could just ( ) get your supply chain software vendor to do the work. (Forrester, 2002) We believe that collectors spend more than 50% of their time on dispute resolution. (Meta Group, 2002) SAP AG 2005, Title of Presentation / Speaker Name / 52

53 Further Information SAPNet / Service Marketplace / Public Web: Use ALIAS: FSCM Direct Contact: SAP ERP Application Solution Management SAP AG 2005, Title of Presentation / Speaker Name / 53

54 Copyright 2005 SAP AG. All Rights Reserved No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iseries, pseries, xseries, zseries, z/os, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBM Corporation. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mysap, mysap.com, xapps, xapp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages. SAP AG 2005, Title of Presentation / Speaker Name / 54