Entering content frame

Background documentation Amounts in Dispute Cases Locate the document in its SAP Library structure

Original Disputed Amount

When you create a dispute case, the system enters the value of the disputed line items in the field Original Disputed Amount. The currency of these items determines the currency of the dispute case. The original disputed amount is subsequently only reduced by the relevant amount of the following actions:

·        Subsequent inclusion of open items

·        Splitting a dispute case

·        Reversing disputed line items

·        Clearing disputed credit memos and partial payments with receivables that are not included in this dispute case

 

Disputed amount

The Disputed Amount is the remaining open amount of a dispute case. When you create the dispute case, the disputed amount is the same as the original disputed amount. At any time, it contains the current total of the disputed items.

 

Amount credited

Credits that you clear during a clearing transaction increase the amount credited. The system assigns them to the disputed line items to be cleared as follows:

·        Credits for a disputed receivable are uniquely assigned to the item specified in the reference if this item is involved in clearing.

·        Credits with reference to a cleared invoice are distributed to the related residual items if these are involved in clearing.

·        In all other cases, credits with an invoice reference are treated as credits without an invoice reference.

·        Credits with no invoice reference are distributed to the items to be cleared in proportion to their amount and age (days in arrears). This is to make sure that all credits are assigned to exactly one item. If this is not possible, the remaining credits are distributed to several items. Again, the system considers the age and the amount.

Note

If a credit was already included in the dispute case as a disputed object, the amount credited is not increased during clearing, since the original disputed amount has already been reduced by the amount of the credit.

 

Amount paid

The amount paid is the total of the payments posted for a dispute case.

The system calculates the amount paid for each line item using the following logic:

·        The posting of partial payments for a disputed receivable increases the amount paid.

·        Payments on account that are cleared during clearing are distributed to the items in the same way as the credit memos (see Amount Credited).

·        The payment amount in the clearing document is determined per business partner and distributed to the cleared line items equally. The system uses the following formula:

Payment amount × (cleared amount from dispute case – assigned amounts from dispute case): (total clearing amount – total assigned amounts)

The assigned amounts include:

¡        Proportionate credits

¡        Proportionate payments on account

¡        Deductions in the form of new residual items

¡        Cash discount

Example
You include an invoice for $1000 in a dispute case.
You include an invoice for $2000 in a second dispute case.
With an incoming payment of $2200, you clear both invoices: The first invoice for $1000 with creation of a residual item for $300, and the second for $2000 simultaneously clearing an invoice-related credit for $200. The residual amount is written off to a G/L account. The following amounts result from this example, and are to be used in the formula for the first dispute case:

Payment amount                                                 $2200
Cleared amount of dispute case                            $1000
Assigned amounts of dispute case                        $300
Total clearing amount                                           $1000 + $2000 = $3000
Total assigned amounts                                       $300 + $200 = $500

 

The system determines the amount paid in the first dispute case according to the rule of three formula:
$2200 · ($1000 - $300) : ($3000 - $500) = $616

Accordingly, the amount paid in the second dispute case is $1584

 

Example with promise to pay

If, in the above example, there is a promise to pay in the amount of $700 for the invoice for $1000, the system assumes that this promise is fulfilled with the incoming payment. The amounts paid for both dispute cases are then determined as follows:

¡        First dispute case: Amount paid = $700 (as promised)

¡        Second dispute case: Amount paid = $1500 (residual payment amount
$2200 - $700)

Caution

The system can only determine the amount paid if you posted the clearing with the standard transaction for incoming payments.

Note

If you clear a partial payment with an invoice in the same dispute case, this does not change the amount paid. This was already updated when you posted the partial payment. However, if the partial payment is cleared against an invoice that is not in the same dispute case, the amount paid is reduced by the amount of the partial payment if the partial payment was assigned subsequently.

 

Amount cleared manually

The amount cleared manually is the resolved portion of the original disputed amount that was neither credited nor paid. This includes:

·        Residual items whose reason code controls that the difference is written off to a separate general ledger account

·        Cash discount deductions (including tax adjustment) when residual items are created

·        Bank charges and unauthorized deductions when residual items are created

·        Other clearing transactions that were not posted with the standard transaction for incoming payments.

 

Amount written off automatically

If you want to write off the items of overdue dispute cases automatically, the system enters the disputed amount in the field for the amount written off automatically.

 

 

Leaving content frame