AR Customer and Item Dispute Question

Hello,

We are currently implementing PeopleSoft Accounts Receivables and wanted to confirm about the use of Dispute Checkbox in both in the Customer and AR Pending Item pages. We tried checking this dispute checkbox and we are still able to process the Pending Item and post it as an Item as well as generate corresponding Accounting Entries.

Should the dispute checkbox prevent the AR Item to be processed further? This is also the case for Customers that were put in Dispute.

Can someone please explain the use of the Dispute checkbox?

Thanks!