Auto dispute case for a chargeback through residual item

Author:          Gopal Dhandapani

Objective: This Article explains the processing of automating the creation of dispute case when you process incoming payment with residual item resulting in chargeback

Business need for implementing end to end process for customer open item management including chargebacks

Business has huge volume of customer invoices to be processed through the cash application process

Currently business is processing lot of chargebacks manually

Charge backs can be either from Lockbox process or from processing bank statements or manual incoming payment

Processing incoming payments together with creation of residual items with new document type

Capture the proper reason code in residual item line item if it is a chargeback

Managing residual items with new document type for ease of monitoring

Automation of dispute case creation for chargeback out of residual items

Automating the end to end process from incoming payment processing to creation of residual item to dispute case creation

Process flow diagram for Processing Residual payment with auto dispute case creation

Business Process

Run Customer open items report FBL5N to review the current open items to check current status

Post Incoming payment F-28

Document posted.  First document is for the incoming customer payment posting and second one is the separate document created for the residual item with separate document type

Document No: 4300003000

Document No: 4400004000

FBL5N – Current status of the open item – chargeback through separate residual item is created

Create dispute case – FDM_AUTO_CREATE

Business Process 2

Auto dispute creation from clearing customer open items with chargeback from residual items

Clear Customer F-32

Two documents get posted.  First one is for clearing the customer open item.  Second document below is for the creation of chargeback as residual item with separate document type

Document No: 3000003001

Document No: 4400005001

Create Dispute

Business Benefits:

This process has been implemented for processing of customer incoming payments, clearing customer open items as well

With this process chargebacks are created with residual items

Chargebacks from residual items are converted to dispute case from background job

Manual intervention for creation of dispute case is eliminated

Business is able to better manage and monitor chargebacks / dispute cases

Business is able to manage higher volume of business

Business has huge volume of customer invoices to be processed through the cash application process

End to end process  has been automated from incoming payment processing to creation of residual item to dispute case creation