on 06-06-2011 2:52 PM
Hi,
I saw a similar question in the forum, but it didn't answer my issue:
Example - payment is partially applied to the invoice, creating a residual item. A dispute case is created linking the residual item to the case. The residual item is then reversed - the dispute case is not closing (or voiding) automatically.
Is there configuration to make it void the dispute case automatically if the linked object is reversed?
Thank you,
Melissa
Hi Melissa,
Are you reversing and re-setting the dispute?
I would suggest that the process needs to be reviewed. If you have a dispute, and you want to close it, then it either needs to be allocated against some cash or credit note. If this cant be done, then the dispute should be voided - check status profile for this.
I would question why you would want to reverse the residual item? Cant you issue a credit posting and use that to match off against the residual item.
One last thing - have you run the dispute buffer program - this should re set the status if the dispute was being edited whilst an accounting document was being cleared that is disputed.
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Hi - thanks for your response.
To answer your question - we would reverse the residual item because it was misapplied. The payment should have been applied to a different invoice (or even a different customer).
We are in the design process now and our current design is:
1. Run the lockbox program (which will create the residual items)
2. Run the FDM_AUTO_CREATE - which will create a dispute for the residual items and assign the dispute to the Cash Application Team
3. Cash Application team reviews the disputes created on residual items. **At this point they may find that the payment was applied incorrectly, so they reverse the payment and reapply. When they do this reversal, it would be ideal if the dispute was voided automatically.
I have not checked the buffer program - I will try testing that today.
Thanks,
Melissa
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OK.
So you have a residual item - an open debit line item against a customer with say reference ABCD
After reviewing the payment allocation you notice that either the full amount should have been cleared, so you need to allocate a credit against the debit, to clear the debit.
If you created a residual with say the wrong reference, if you create a journal that has a credit entry with reference ABCD, and a debit entry with ABCA and then dispute that. You can then clear the credit and debit with reference ABCD.
If you have activated the auto status changes in config - Dispute Case Processing >> Process Integration >> Define automatic status changes when you clear the debit, the dispute will be closed.
Since the original payment was applied incorrectly, the process is to reverse that payment document (which has the dispute case linked to it) and reapply it to the correct invoice(s).
I would like to see that dispute case void automatically when the payment document is reversed. It is really an "orphan" case - since the document it is linked to has been reversed.
Thanks,
Melissa
I have just tried this.
What I noticed was the original disputed amount has been changed back to zero.
I presume this is an issue to you.
The point I am trying to make, is that the residual item should not be reversed/ reset but extra journals should be created to clear the open items - leading to the disputes to close.
Hi - I appreciate your feedback and respect your point, however, creating additional journal entries causes a lot of "clutter" on the account. When you create additional journal entries, then that very first invoice that had a payment applied to it in error is still linked and is no longer the original accounting document.
Reverse/reset serves as a valuable tool in that the original document is put back to it's original state. The payment was applied in error, the invoice should be put back onto the account as if the payment never happened.
My question is around whether I was missing a piece of configuration that would automatically void out the dispute case if the document that it is linked to is reversed.
Thanks again,
Melissa
There is no extra config.
The system as you describe is working as it has been designed.
Whilst, it may be easier to reverse and reset the residual item - if you want to use Dispute Management - you may need to review your processes.
Please remember, the reason for this issue is a fault - a residual item has been created incorrectly. Create the right first time and you dont have an issue. If there is an error in creation, you need to expect some form of pain to resolve.
I presume reversing and resetting the clearing will lead to a volume of manual work, so it is worth considering changing the process to reduce the volume of manual work.
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