What happens to an ARC accredited agency's disputed debit memo in ARC Memo Manager (AMM)?

• A. The memo is immediately closed.
• B. The memos are placed in a pending status until the carrier accepts or rejects the dispute.
• C. The memo is moved to archived.
• D. The memo is automatically approved.

Answer: (B)

In ARC Memo Manager, when a debit memo is disputed, it isn’t closed, archived, or automatically approved. The system places the memo in a pending status, signaling that the dispute is under review. The carrier then has a set period to review and either accept or reject the dispute. Until that carrier decision is made, the memo remains in pending. This setup ensures proper review and documentation before any final resolution.