AR Disputes & Revenue Leakage

Goal & Scope

• Goal: Apply AP exception handling and matching logic to the Revenue/AR side to resolve disputes faster and prevent leakage.
• Scope:
  • Customer invoice dispute classification.
  • Automated evidence assembly (Delivery, Contract, Usage).
  • Revenue leakage analytics.
• Why: Faster cash collection (lower DSO), clear ROI, leverages existing AI primitives.

Data Model

• Dispute Case:
  • case_id
  • customer_invoice_id
  • customer_id
  • status (New, Evidence Gathering, Ready for Review, Resolved)
  • dispute_reason (Price, Quantity, Delivery, Tax)
• Evidence Package:
  • case_id (FK)
  • linked_documents (List: Contract, POD, Usage Logs)
  • auto_summary (AI-generated explanation of validity)
• Leakage Metric:
  • metric_type (e.g., Unbilled, Underbilled, Written-off)
  • amount
  • period

Logic

Dispute Classification

• Ingest dispute notification (email/portal).
• Classify intent: "Wrong Price", "Didn't receive goods", "Damaged", etc.

Evidence Auto-Assembly

• Trigger: New Dispute Case created.
• Action:
  • Fetch associated Contract (validate price).
  • Fetch Proof of Delivery (POD) from logistics integration (validate quantity/receipt).
  • Fetch Usage Logs (if usage-based).
• Outcome: Assemble "Evidence Package" to substantiate the invoice.

Revenue Leakage Analytics

• Identify patterns where disputes lead to write-offs or credit notes.
• Calculate impact on DSO (Days Sales Outstanding).

UX/UI

• Dispute Resolution Center:
  • Similar to AP Matching view but for AR.
  • Left: Customer Dispute details.
  • Right: Generated Evidence Package & Recommendation.
• Action Buttons:
  • "Send Evidence to Customer"
  • "Issue Credit Note"
• Leakage Dashboard:
  • Analytics on recurring dispute reasons and revenue impact.

API/Integration

• Inputs:
  • AR Ledger (Outgoing Invoices).
  • CRM/Contract System (Terms).
  • Logistics/Fulfillment System (PODs).
  • Usage Data (for metered billing).
• Outputs:
  • Email drafts to customers.
  • Adjustments to AR Ledger (Credit Notes).