How It Works

1. 01

   Dispute Identification & Evidence Compilation

   Finance or Procurement flags disputed invoice (e.g., overcharge, undelivered items, quality issues). AI gathers supporting evidence: PO terms, receipt confirmation, inspection notes, photos, previous communications.

2. 02

   Dispute Reason Coding & Vendor Notification

   AI categorises dispute reason (price variance, quantity discrepancy, quality issue, freight overcharge, etc.). Sends vendor formal notification email with dispute amount, reason, and supporting documents attached, requesting acknowledgement within 5 days.

3. 03

   Vendor Communication & Evidence Exchange

   Monitors vendor response. If no response within 5 days, AI sends follow-up email and SMS. If vendor disputes the dispute, AI collects their counter-evidence (quality cert, signed receipt, etc.) and routes to Procurement Manager for arbitration.

4. 04

   Resolution Negotiation & Payment Adjustment

   If vendor acknowledges error, AI negotiates resolution options: (a) full credit memo, (b) partial adjustment with payment hold, (c) debit note. Once agreed, vendor issues credit memo or AI creates debit note in system.

5. 05

   Finance Update & Closure

   Applies agreed adjustment to outstanding invoice balance or A/P account. Routes credit memo or debit note to AP for posting. Updates CRM with dispute outcome, timeline, and amount recovered. Closed case triggers vendor relationship review.