Value Proposition: Supplier Disputes do not become an issue when there is only a “discrepancy”; they become a problem when there is a lack of a single file that clarifies: What is the disputed invoice? What is the reason for the dispute (PO/Invoice discrepancies / Receipt / Price / Tax / Repetition)? Who is the owner? What action is required (CN/PO correction/GRN correction/Cancellation)? And what is the status of the invoice (Hold/Approved/Partially paid)? This AP Dispute Tracker builds the dispute as a manageable case that can be closed, rather than a series of messages and pending items that accumulate until Month-End.

In 20 Seconds: What Will You Get?

• AP Dispute Tracker: A unified dispute record with dispute number + invoice number + vendor + amount + dispute date/age.
• Classification of PO/Invoice Discrepancies (Price/Qty/Tax/Reference/Service acceptance) instead of a “General Issue” field.
• List of Pending Invoice Disputes (On hold queue) with Owner and reason for hold and required action.
• Follow-up on Supplier Credit Notes (CN) and linking them to the invoice/PO and closing the dispute upon issuance of CN or correction.
• Aging + SLA: Measuring overdue disputes (7/14/30/60 days) to identify what threatens Month-End.
• Root Cause Dashboard: What is causing repeated disputes? (Price? Receipt? Non-matching PO? Tax?) to correct the process.
• Month-End Disputes Pack: List of open disputes + reasons + document status + Evidence index for delivery within the Closing Pack.

CTA related to outputs: You will receive Dispute Register + Aging + CN Follow-up + Month-End Pack ready for operation and delivery.

Suitable For

• Accounts Payable (AP): Managing pending invoice disputes and linking them to reasons/actions/attachments instead of waiting.
• Procurement + Receiving: Resolving procurement disputes arising from PO/Invoice discrepancies or receipt/acceptance issues.
• Controller / Head of Accounts: Entering Month-End with a “clarified” list of open disputes ready for delivery within the Closing Pack.

Not Suitable For

• If your company does not use PO/GRN and there are no references to link — you will first need to adjust P2P cycle documents before disputes become trackable.
• If you are looking for an automated Ticketing system with notifications and internal correspondence — this is an operational Tracker with files, not a platform.

Without Tracker / With Tracker (Brief Comparison)

Before Use: 5 Symptoms That Supplier Disputes Are Causing “Pending Invoices” Without an Owner

• The AP Holds list is large but without a classified reason (Are they PO/Invoice discrepancies? Receipt? Price? Tax?).
• Supplier invoice disputes are managed through calls/messages, and when asked, there is no dispute number, start date, or last follow-up.
• Supplier credit notes (CN) are issued but do not close the dispute because there is no link between the CN and the invoice/PO.
• The same type of dispute recurs (e.g., price discrepancies) without a report proving the root cause and where the problem originates.
• In Week-4/Month-End, old pending invoice disputes appear affecting cut-off and AP delivery within the Closing Pack.

How Are Supplier Disputes Managed Practically from Hold in AP to Closure Before Month-End?

The idea is not just to “record a dispute”; the idea is that each dispute comes out with a clear decision: Do we need to correct the PO? Do we need to correct the GRN/service acceptance? Do we need a CN? Is the dispute just a timing issue and will it close automatically after the document arrives? AP Dispute Tracker starts from a list of pending invoice disputes and transforms them into cases: classifying the reason, identifying the owner (AP/Procurement/Receiving), recording the required action and date, then closing the dispute upon issuance of CN or modification of reference or approval of the invoice. In Week-4, the tracker produces a list of open disputes/Aging that enters into Month-End Reconciliations and the Closing Pack.

Implementation Method (3 Steps)

Step 1: Preparation and Report Gathering

• Extract AP open invoices + hold list (Invoice#, Vendor, Amount, Due date, Hold reason if any).
• Extract related purchase references (PO/GRN/Service acceptance) or any alternative internal reference.
• Gather issued CN/DN from the vendor (if any) + Vendor statement (optional if there are discrepancies in the vendor account).
• Define a simple rule for classification (PO/Invoice discrepancies, receipt/service acceptance, tax, repetition, missing reference, quality dispute…).

Step 2: Reconciliations + Classifying Disputes + CN Follow-up

• Record each Hold invoice as a Dispute case: dispute reason + description + missing documents + required from each party.
• Classify PO/Invoice Discrepancies into:
  • Price variance: Invoice price ≠ PO/agreement price.
  • Qty variance: Invoice quantity ≠ Receipt/acceptance quantity.
  • Tax/withholding: Tax difference or WHT treatment (as per your policy).
  • Reference issue: Incorrect or missing PO/GRN reference.
• Open a processing path: Request CN / Modify PO / Correct receipt / Cancel duplicate invoice / Request documents.
• Activate Follow-up on Supplier Credit Notes: CN number, issue date, amount, related invoice/dispute, and date applied in the system.

Step 3: Closing Disputes + Month-End Pack

• Close the dispute with one of: Approving the invoice after correction, applying CN, canceling the invoice, or reconciling the receipt reference.
• Output an “Open disputes” list with dispute age (Aging) + “Critical disputes” affecting Month-End.
• Prepare the Disputes Pack for delivery: dispute register + list of open CNs + evidence index + sign-off within the Closing Pack.

Template Components (Clear Inventory)

1. Dispute Intake
   • Practical Purpose: Enter the dispute with its basic data (Vendor/Invoice/PO/Amount) instead of unstandardized messages.
   • When to Use: When placing the invoice on Hold or when a new dispute arises.
   • Resulting Evidence: Dispute ID + dispute start date + owner.
2. AP Dispute Register
   • Practical Purpose: A single register that includes all supplier invoice disputes and their status and impact on payment.
   • When to Use: Daily in AP + weekly review with Procurement.
   • Resulting Evidence: Deliverable register showing open/closed disputes.
3. Reason Codes & Root Cause
   • Practical Purpose: Transform the dispute from a “problem” to a measurable cause (PO/Invoice discrepancies, receipt, tax…).
   • When to Use: When recording the dispute and when reviewing recurring causes monthly.
   • Resulting Evidence: Root cause report used to improve P2P controls.
4. PO/Invoice Variance Log
   • Practical Purpose: Document price/quantity/tax discrepancies and link them to the required action.
   • When to Use: During dispute resolution and before any exceptional approval.
   • Resulting Evidence: Variance log + processing decision + owner.
5. CN Tracker
   • Practical Purpose: Prevent “lost CN” and ensure it is linked to the dispute and applied in the system.
   • When to Use: When requesting CN and until it is closed (Issued → Received → Posted → Cleared).
   • Resulting Evidence: List of open CNs + their impact on dispute closures.
6. Hold Queue & Actions
   • Practical Purpose: Separate invoices on hold due to disputes from invoices ready for payment.
   • When to Use: Daily + before the weekly Payment run.
   • Resulting Evidence: Hold list with clear reasons and ETA for closure.
7. Aging & SLA Dashboard
   • Practical Purpose: Highlight overdue disputes affecting Month-End or causing AP item accumulation.
   • When to Use: Weekly + Week-4/Month-End.
   • Resulting Evidence: Aging report (0–7/8–14/15–30/31–60/60+ days).
8. Month-End Disputes Pack
   • Practical Purpose: Compile closing delivery: open disputes + open CN + evidence index + sign-off.
   • When to Use: Month-End and Year-End within the Closing Pack.
   • Resulting Evidence: Reviewable pack showing what has been closed and what remains and why.

What Should Be Included in the Delivery?

• 01-AP-Dispute-Tracker.xlsx: The main file (Register + Aging + Dashboards + Root Cause).
• 02-Dispute-Intake-Form.docx: Payment/Invoice dispute intake (mandatory data + attachments).
• 03-Reason-Codes-Matrix.xlsx: Dispute reason codes + definition of each reason + standard action.
• 04-PO-Invoice-Variance-Log.xlsx: PO/Invoice discrepancies (price/qty/tax) + decision + owner.
• 05-CN-Tracker.xlsx: Follow-up on supplier credit notes (Issued/Received/Posted/Cleared) + linking to the dispute.
• 06-Hold-Queue.xlsx: List of pending invoice disputes + reasons + follow-up dates + SLA.
• 07-Vendor-Statement-Tieout.xlsx: (optional) Linking vendor statement with disputed items if the issue is at the vendor account level.
• 08-Weekly-Dispute-Review-Pack.xlsx: Weekly pack (Open/Closed/Overdue + action owners).
• 09-MonthEnd-Disputes-Pack.xlsx: Month-end pack within the Closing Pack (Snapshot + exceptions + evidence + sign-off).
• 10-Evidence-Index.xlsx: Evidence index (PO/GRN/Invoice/CN/Correspondence) + links/trails.
• 11-Runbook.pdf: Operational run (Hold → Classify → Resolve → CN/Correction → Close → Pack).
• 12-Controls-Checklist.pdf: AP/P2P control points regarding disputes and holds before Payment run and Month-End.
• 13-Archiving-Map.docx: Archiving tree (Year/Month/AP/Disputes/Evidence/CNs) + Naming convention.
• 14-Signoff-Page.docx: Prepared/Reviewed/Approved + period scope.

After Implementation (Two Points Only)

• Operational Outcome for the Team: Each invoice in dispute becomes a Case with an Owner, Action, and Date, producing a weekly list: What needs a CN? What needs a PO/Receipt correction? What can be approved after modification? Instead of waiting for “resolve it through calls.”
• Control/Audit Outcome: You have a Trace for each dispute: Invoice/PO/GRN ↔ Dispute reason ↔ Processing decision ↔ CN/Correction ↔ Closure, with Month-End Disputes Pack and Evidence index deliverable within the Closing Pack.

FAQ — Questions Before Purchase

Does the AP Dispute Tracker Suit Any ERP System?

Yes. You only need to extract AP open invoices/hold list and PO/GRN/Invoice references. The tracker works above the system and produces a follow-up and delivery record.

Is it Suitable for Multi-Branch Companies?

Yes, if the data includes Company/Branch/Cost center. Disputes can be filtered by branch and a Pack can be produced for each branch and then total.

Does it Cover 3-Way Match and GR/IR Disputes?

It covers them as dispute cases (PO/Invoice discrepancies or receipt/service acceptance). If you have a 3-Way Match or GR/IR toolkit, references can be linked so that the dispute is part of the Reconciliations file before Month-End.

What is the Minimum Data Required to Record a Dispute?

Vendor + Invoice# + Amount + Initial dispute reason + Reference (PO or GRN or Contract/Service acceptance) + Owner. Without these elements, the dispute becomes “unclosable.”

Does it Track Credit Notes (CN) Until They Are Applied in the System?

Yes, through the CN Tracker in statuses (Issued/Received/Posted/Cleared) linking each CN to the dispute/invoice so that the dispute does not remain open after the CN is issued.

Can It Be Used Before the Weekly Payment Run?

Yes: It outputs the Hold queue with pending invoice disputes, helping AP/Treasury separate what is to be paid, what is on hold, and what is escalated to Procurement.

Is It Suitable for Month-End and Year-End?

Yes: Month-End focuses on clearing open disputes and producing a list for delivery, and Year-End focuses on old disputes and preparing a stronger evidence file for review.

Is There a Delivery Template for Internal Review?

Yes: Month-End Disputes Pack + Evidence index + Sign-off shows open and closed disputes and reasons for continuation.

Does It Automatically Generate Journal Entries (JE Log)?

It does not post entries. However, it identifies where the dispute affects closing (such as pending invoices that may impact cut-off) and can be manually linked with the JE Log within the Closing Pack according to your company policy.

Ready to Turn Pending Invoice Disputes into Closable Cases Before Month-End?

Outputs: AP Dispute Tracker + Aging + Variance log + CN follow-up + Month-End pack.