Orange County Convention Center Orlando, Florida May 15-18, 2011 SAP FSCM Collections Management Sashidhar Narahari President & CEO HighRadius Corporation email: sashi.narahari@highradius.com ]
Functionality Overview Collection Supervisor Collection Specialist Define collection strategies / rules Define work item assignment to users / groups Monitor and reallocation of workload Incoming / Outbound collection calls Process daily worklist based on prioritization Record customer contact and follow up
Text Double-Click to open customer work item
Text Record promise for payment or customer contact at the invoice level
Text Promise for payment has been recorded
Text Record customer contact resulting in completion of the work item
Text Work item completed
Streamline Customer-Facing Activities Enable central company wide common processes Leverage collections management to identify and prioritize customers that need to be contacted after automated collection attempts have failed, enabling a proactive approach to receivables management Daily worklists to improve user productivity Increase efficiency and effectiveness of customer-facing communication Incoming / Outbound Calls Outbound Correspondence Generation 8
Streamline Customer-Facing Activities Enable a system independent company wide common processes using one platform. So, how does it work? Connect Non-SAP AR systems and SAP FI-AR systems (< R/3 4.7) into one single instance of Collections Management Non-SAP AR systems can be connected as a substitute system which enables the transfer of master data and document data
Streamline Customer-Facing Activities Proactive approach to receivables management Accounts Receivable Start Worklist Generation Customer Contact Promise to Pay End Creation of Dispute Case Invoice Posted to AR Resubmission for follow up Yes X Days Past Due? No End Prioritization based on Strategies Type of Contact Individual Dunning Notice OR FI Correspondence Invoice Paid? Yes Automatic Dunning Dunned X times? Automatic Worklist Generation Generate Account Statement Re-Print Invoices Enhancement Pack 5 No
Streamline Customer-Facing Activities Streamline Customer Contact Activities Create Invoice-Level promise for payment SAP Collections Management ECC 6.0 Enhancement Pack 2 4 5 Create Invoice-Level promise for payment with installments for customers on payment plans Create dispute case for open invoices that are disputed Create dispute case, or customer-disputed object, for claims not related to an open receivable Create customer-level resubmission, or follow up reminder on a specific date Create invoice-level resubmission, or follow up reminder, with ability to insert attachments Ability to re-print SD invoices
Streamline Customer-Facing Activities Streamline Customer Contact Activities Create notes with reference to one or many invoices with the ability to insert attachments. New tab with a consolidated overview of all notes. Ability to generate individual dunning notices on an ad hoc basis. Dunning Data will be visible in the customer contact log. Ability to include attachments upon creation of customer contact. Ability to generate Ad Hoc FI-Correspondence: Bank statements Open Item Lists Individual correspondence Customer Statements Ability to email contact logs to the customer or extract them if needed for sending a customer to collections SAP Collections Management ECC 6.0 Enhancement Pack 2 4 5
Key Learning's for a Successful Deployment & ROI Five Considerations for a Successful Implementation 1. How to define your organizational structure 2. What data Is needed and where? 3. How to define your collection strategies & assign to collection groups 4. How to set up your business partner collection profile 5. How to generate worklists for prioritization and assignment 1. How to define your organizational structure 2. What data Is needed and where? 3. How to define your collection strategies & assign to collection groups 4. How to set up your business partner collection profile 5. How to generate worklists for prioritization and assignment 13
Key Learning s for a Successful Deployment & ROI Before we begin. Let s review some key concepts in FSCM Collections Management Collection Group A group of customers that can be collected with the same strategy Collection Strategy Determines when a customer should be contacted for collection activities Prioritizes a collector s worklist
1. How to define your organizational structure 2. What data Is needed and where? 3. How to define your collection strategies & assign to collection groups 4. How to set up your business partner collection profile 5. How to generate worklists for prioritization and assignment Mark Taylor Company Code 4000 / Credit Segment 1000 Canada Collection Segment Collection Group Collection Specialist Laura Fortin Collection Specialist Jake Pelletier John Smith Collection Specialist Large Retailers Collection Specialist Company Code 3000 & 1000 / Credit Segment 2000 US Collection Segment Collection Group SME Customers Collection Group Tom Jones Collection Specialist Tina Miller Collection Specialist Nancy Johnson Substitute 01/01/09 01/20/09
1. How to define your organizational structure 2. What data Is needed and where? 3. How to define your collection strategies & assign to collection groups 4. How to set up your business partner collection profile 5. How to generate worklists for prioritization and assignment What information is needed for processing of receivables? Within the Collection Worklist Customer-Level Data Within the Collection Work Item AR Line Item Data Collection Rules for prioritization of work items within the collectors worklist
1. How to define your organizational structure 2. What data Is needed and where? 3. How to define your collection strategies & assign to collection groups 4. How to set up your business partner collection profile 5. How to generate worklists for prioritization and assignment Enhance Worklist, Work Item and Collection Rules Addition of customer-level data to the worklist or addition of AR line item data to the work item Information can be used to streamline collection activities Build collection rules based on additional data Enhancement of the work list and work item data will provide central visibility to required information Enhanced worklist which summarizes the number and amount of orders on credit hold to streamline collection efforts
1. How to define your organizational structure 2. What data Is needed and where? 3. How to define your collection strategies & assign to collection groups 4. How to set up your business partner collection profile 5. How to generate worklists for prioritization and assignment Collection Strategy Collection Rules Basic Rules High to Medium Risk and greater than 80% Credit Limit Utilization Valuation: 15 points Risk Category Credit Limit Utilization Dunning Level Collection Strategy for Higher Risk SME Customers Past Due Invoices Over 15 days Past Due & Dunned One or More Times Valuation: 20 points Documents by posting key and document type Individual Items Overdue Since N Days Resubmission Due for the Customer Valuation: 5 points Resubmission Due for the Customer
1. How to define your organizational structure 2. What data Is needed and where? 3. How to define your collection strategies & assign to collection groups 4. How to set up your business partner collection profile 5. How to generate worklists for prioritization and assignment To Be Collected Amount Calculation Total Amount Past Due Items with Open Promise to Pay Dispute Cases not in a To Be Collected Status Items with a Current Dunning Notice Items Arranged for Payment Amount To Be Collected Total Amount Past Due Total of all overdue items in FI-Accounts Receivable Items with Open Promise to Pay If there items with an open promise to pay, or items with a future payment promised on date, these items will be excluded from the To Be Collected amount Dispute Cases not in a To Be Collected Status All open dispute cases, which have not been updated with a status that is mapped to the To Be Collected in collections management, will be excluded from the To Be Collected amount Items with a Current Dunning Notice If a line item in FI-Accounts Receivable has recently been dunned, this amount will be excluded from the To Be Collected amount. Items Arranged for Payment All amounts that are (a) collected with a debit memo procedure or (b) where the account statement balance contains a payment notification from the bank will be excluded from the To Be Collected amount BAdI: Amount To Be Collected: Can be used to enhance the to be collected amount calculation
1. How to define your organizational structure 2. What data Is needed and where? Collection strategy to collection group assignment will be different for different types of customers Small to Medium Sized Customers Larger Retailers Collection strategy to collection group assignment may need to change during different periods of the month or year Cash strategy at month end or year end 3. How to define your collection strategies & assign to collection groups Regular strategy for collection during the month 4. How to set up your business partner collection profile 5. How to generate worklists for prioritization and assignment
1. How to define your organizational structure 2. What data Is needed and where? Collection Specialist Assignment 3. How to define your collection strategies & assign to collection groups 4. How to set up your business partner collection profile Option for even distribution to each collection specialist within the collection group Individual collection specialist assignment within the Business Partner Collection Profile BAdI: Determination of Collection Group and Specialist per Segment Automatic determination by accounting clerk in customer master, for example 5. How to generate worklists for prioritization and assignment Individual collection specialist assignment in the business partner collection profile
1. How to define your organizational structure 2. What data Is needed and where? 3. How to define your collection strategies & assign to collection groups 4. How to set up your business partner collection profile 5. How to generate worklists for prioritization and assignment Upon worklist generation priority is determined by the valuation of each collection rule within the collection strategy
System Demonstration: Collection Strategies Prioritization of a collectors workload based on your departmental objectives and KPI s: Aging of Open Receivables Dunning Level and Amount Dunned Broken and/or partial kept promise to pay Dispute Cases in a to be collected status X days after initial collection attempt Integration of FI-AR/SD Credit Management Data Credit Limit Risk Category Credit Exposure Integration of Orders & Deliveries on Hold Amount & Count on Hold Identification of Customers with Non Sufficient Funds
Text Collection rules within the collection strategy
Text Conditions within a Collection Rule. If all conditions are true, then rule will be valuated with 30 points.
Text Simulation of collection strategy for a business partner
Text Determine if expected collection rules have been valuated
Text Simulation results in a High Priority
Text High priority consists of the following collection rules
Text Now that your collection strategy has been refined, regeneration of the worklist will reprioritize your collectors workload
Text Go to your UDM_SUPERVISOR transaction to view workload allocation and prioritization
Text Go to UDM_GROUP transaction to switch from a daily strategy to a CASH strategy at the end of the month, for example. Upon regeneration of the worklist, prioritization will be redetermined accordingly
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