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Meaning

Disputes management is the process by which disputed invoices or parts thereof are recorded, investigated and resolved. A dispute arises when a customer disputes the accuracy of an invoice, such as because of price agreements, delivery differences or contract terms. Effective dispute management focuses on quick identification of the cause, clear communication between departments and timely correction when necessary. The goal is to prevent unwarranted delays in payment and identify structural errors in the billing process.

Context in credit management

Within accounts receivable management, good dispute management prevents invoices from aging unnecessarily. It requires cooperation between finance, sales and operations. A high number of disputes can indicate process errors or unclear agreements.

Example

A customer disputes an invoice because the quantity delivered differs from the order, recording a dispute.

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