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Simplifying Dispute Management for Your Collectors & How to Resolve Disputes Faster

19 January, 2021
6 min read
Patrick Petti, AVP, Value Optimization
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What you'll learn

  • How to manage disputes effectively in collections using an automated dispute management software
  • How collectors can access and take actions on customer disputes from a single place
  • The full potential of Integrated Receivables: how collections and deductions teams collaborate seamlessly for a faster dispute resolution
  • How occasional users such as sales managers can selectively access and resolve disputes within Collections Cloud
What is Collections and Dispute Management?
What are the Major Roadblocks for Dispute Management in Collections?
How to Manage Dispute: A Single Platform for Handling All Customer Disputes with HighRadius Collections Software
What's the Ideal Roadmap for Dispute Management in O2C?
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In several small or medium-sized businesses, collectors handle both past-due recoveries and dispute management in order to cash. The dispute management process generally involves the collections analysts recording customer-initiated disputes and validating them to accelerate resolution.

But in large enterprises, while collections and deductions teams function separately, they often collaborate to ensure faster dispute resolution and past-due recovery.

Now, here’s the predicament: whether it’s a large enterprise or a small business — collectors aren’t equipped with the right tools or transparency to look into the disputes raised by their customers. Ultimately, this slows down collections recovery and dispute resolution. We’ll discuss this concern in-depth and how you can improve your dispute management process in collections as a business function.

What is Collections and Dispute Management?

Dispute management in collections is a formalized approach or process to recover collections, past debts and resolve customer invoice disputes. With proper dispute management, collectors can accelerate dispute resolution and achieve receivables and collections on time. Besides, businesses can significantly reduce bad debts.

What’s the Importance of Dispute Management in Collections?

The onus of any successful business lies in how it’s handling its customers’ complaints and discrepancies in invoices and billing documents. With Dispute Management, you can effectively view, manage, and strategize disputes related to missing or late payments, credits, or incorrect and disputed invoices. While it does help recover past-dues on time, with dispute management, your communication and collections processes become more transparent, allowing you to better interpret your cash flow and finances.

What are the Major Roadblocks for Dispute Management in Collections?

The lack of real-time visibility or proper access to disputes hinders the process of dispute resolution in collections. Let’s look at some common problems collectors may face during dispute resolutions.

  • Lack of a proper strategy for dispute resolution impacts past due recoveries and makes it difficult to keep track of every dispute.
  • At the moment, collectors have to filter and search disputes for each customer manually; after drawing deductions from those disputes, the collectors then inspect and validate those deductions and transfer them to a deductions analyst. As you can tell, this is time-consuming because the collectors have to manually perform these tasks for 100s of customers, which further delays past-due recovery.
  • The audit trails are inconsistent and less transparent.
  • Several dispute resolutions need the sales or warehouse teams to get involved. In most cases, these teams get limited access to perform particular tasks to ensure dispute resolution. This access is mostly provided manually via email, and there is no organized way for the Accounts Receivables team to track or monitor the access provided to sales/warehouse teams. On the other hand, if you’re using paper documentation, it can be taxing and lead to a considerable auditing concern at the end of the quarter.

In the following sections, we’ll explore some solutions and how the collections team can obtain a convenient, central view across all the disputes with Collections Cloud.

How to Manage Dispute: A Single Platform for Handling All Customer Disputes with HighRadius Collections Software

HighRadius provides an automated solution powered by AI that facilitates streamlining collections and disputes.
Collections Cloud enabled a newly integrated feature — Disputes Tab, which lets your collector access all the customer disputes from one place.

From working on a range of disputes and corresponding with relevant members to routing them to different teams for quick dispute resolutions — your collections team can expedite various processes with this tool.

Based on the nature of your business and its requirements, Disputes Tab can be customized; sales or warehouse teams can still gain selective access, and the collections team can monitor the permissions seamlessly. Besides, other occasional users can also access the disputes and take necessary actions for faster dispute resolution.

How the Dispute Tab Works: A 3-Step Approach for Your Collections Analyst

The Disputes Tab comes with a central tab for viewing and managing disputes, which simplifies dispute management. Here’s how a collections analyst can use the tab:

Dispute management in collections: 3-step guide to HighRadius disputes tab functionality

  • View the updated list of open disputes: The collection analysts can begin their day by checking out the updated list of open disputes. From the Disputes Tab, collectors can also view the aggregate of open dispute amounts.
  • Easily Filter and prioritize specific disputes to resolve: From the tab, collectors can seamlessly filter out the disputes based on customer name, invoice number, reason code, date of the dispute raised, the disputed amount, and a lot more.
  • Manage and resolve disputes or perform bulk actions: Using the Disputes Tab, collectors can communicate, route disputes to relevant collectors or deductions teams, manage dispute status, or add notes and attachments. While collectors can optimize individual disputes, they can also perform actions in bulk, such as changing the dispute statuses or sending correspondences to various stakeholders.

Dispute Tab: Dispute Management in Collections

How to Best Manage Disputes with the Power Integrated Receivables?

Faster and efficient dispute resolution is possible when collections and deductions teams collaborate and work in tandem, leading to quicker validation of certain disputes. HighRadius Integrated Receivables empowers your collectors to route deductions to deductions analysts. With this, all the information you need seamlessly flows from Collections Cloud to Deductions Cloud. Now, the deductions analyst can work on the assigned deductions and perform more research for a faster and well-planned resolution.

What's the Ideal Roadmap for Dispute Management in O2C?

While it’s evident that you can simplify dispute management in O2C with the Disputes Tab, there’s always room for improvement. Order to Cash teams have to upgrade and constantly improve their processes to ensure success. And you can achieve this only with a transparent and proactive setup. For instance, collectors can flag and escalate any dispute to their higher officials on the Accounts Receivables team with this tool. Following the escalation, the officials are immediately notified, and they can access all the information related to the specific disputes. This is highly beneficial because it contributes to faster dispute resolution.

All set to simplify your dispute management system? You can check out HighRadius’s Automated Dispute Management System in Collections and achieve faster dispute resolution.

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HighRadius Collections Software automates and optimizes the credit & collections management process to improve collector efficiency, minimize bad debt write-offs, improve customer relationships, and reduce DSO. It provides a complete set of tools to optimize and automate the credit collections management process and enable the better prioritization of credit collections activities All the information you need (invoices, dispute information, POD, claims, tracking info, etc.) on each case is automatically presented in a collections work-space and is ready for use. Apart from the wide variety of benefits that it has, it also comes with some amazing features like CADE (Collection Agency Data Exchange), collector’s dashboard which has prioritized collections worklist, automated dunning & correspondence, dispute management, centralized tracking of notes, call logs & payment commitments along with cash forecasting functionalities. The result is a more efficient collections team that contributes to enhanced cash flow and reduced DSO.

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