What is SAP Collections and Dispute Management?

SAP Collections and Dispute Management offers automated processes for handling open items and disputes. 

The solution improves liquidity and strengthens customer relationships through transparent processes and real-time data integration in SAP S/4HANA.

SAP Collections and Dispute Management is an integrated solution within SAP S/4HANA that helps companies automate, simplify, and make more transparent the processes in receivables management, as well as dispute and clarification case handling.

Using modern technologies and real-time data, companies can prioritize open items, process them faster, and efficiently resolve disputes.

The solution promotes liquidity while also improving customer relationships through structured and traceable processes. It covers all key tasks—from communication with customers to resolving payment discrepancies to the automated creation of adjustment postings.

SAP Collections and Dispute Management enables:

• Receivables Management (Collections): The structured and prioritized processing of open items based on real-time data and individual rules.
• Dispute Case Management (Dispute): Efficient documentation, tracking, and resolution of disputes, including the creation of adjustment postings.

Thanks to full integration into SAP S/4HANA, the solution can be used without external tools. Companies benefit from a central system that provides all relevant data and functions in real time.

The process generally flows as follows:

• A customer has an outstanding invoice for a service rendered or product delivered.
• When the payment is received, it is found that the transferred amount is incomplete, leaving a balance open.
• A dispute case is created for this difference, as the payment does not match the original receivable.
• The case is resolved either by an additional payment from the customer or by issuing a credit note, so the difference is automatically settled.

SAP Collections and Dispute Management combines intuitive user interfaces with powerful automation and workflow features.

The features can be divided into two main areas:

Features in Receivables Management (Collections):

• Automated prioritization: Open items are prioritized based on criteria such as due date, amount of receivable, or customer payment behavior.
• Worklists: Fiori-based worklists provide an intuitive and clear display of items to be processed.
• Customer communication: Direct contact options via email or integrated communication features.
• Workflow-based reminders: Automated reminders and escalations for unpaid receivables.
• Detailed customer overviews: Display of all relevant customer information, including open items, payment plans, and history.

Features in Dispute Management (Dispute):

• Creation and management of dispute cases: Dispute cases can be directly created from open items and linked to the corresponding documents.
• Documentation and tracking: All relevant information, such as comments, documents, and correspondence, is centrally documented.
• Workflows for processing: Dispute and approval processes can be managed through workflows.
• Automated adjustment postings: After resolving a dispute case, reversals or credit notes can be automatically generated.
• Transparent logging: All steps in the dispute case process are documented in a traceable manner.

By utilizing real-time data and automated processes, SAP Collections and Dispute Management provides numerous benefits, both operationally and strategically.

Benefits at a glance:

• Increased efficiency: Automated processes and prioritized worklists reduce manual effort and accelerate processing.
• Improved liquidity: Faster resolution of open items and disputes leads to more stable and improved cash management.
• Transparency: Dashboards and detailed reports make it easy to track and analyze receivables and dispute cases.
• Optimized customer communication: Direct and structured contact options improve customer relationships and increase payment punctuality.
• Early resolution: Discrepancies and differences are identified early, simplifying consolidation.

SAP Collections and Dispute Management is an out-of-the-box solution that is natively integrated into SAP S/4HANA. 

No additional licensing costs are required, and the solution can be used immediately after the implementation of SAP S/4HANA.