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 / Incoming / Outbound collection

rules calls
Define work item assignment Process daily worklist based on
to users / groups prioritization
Monitor and reallocation of Record customer
workload contact and
follow up

Real Experience. Real Advantage.

[ Text

Double-Click to
open customer
work item

Real Experience. Real Advantage.

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Record promise
for payment or
customer contact
at the invoice level

Real Experience. Real Advantage.

[ Text

Promise for
payment has been
recorded

Real Experience. Real Advantage.

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Record customer
contact resulting
in completion of
the work item

Real Experience. Real Advantage.

[ Text

Work item
completed

Real Experience. Real Advantage.

[ 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

Real Experience. Real Advantage. 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

Real Experience. Real Advantage.

[ Streamline Customer-Facing Activities
Proactive approach to receivables management
Accounts Receivable Worklist Customer Contact
Generation
Promise to
Start Pay End

Creation of
Dispute Case
Invoice Posted
to AR Resubmission for
follow up
Yes
Individual Dunning
X Days No Notice OR FI
Past Prioritization Type of Correspondence Invoice
End based on Strategies Contact Paid?
Due?
Generate Account
Statement
Yes
No
Automatic
Automatic Dunned X Re-Print Invoices
times?
Worklist
Dunning Generation
Enhancement Pack 5

Real Experience. Real Advantage.

[ Streamline Customer-Facing Activities
SAP Collections Management
Streamline Customer Contact Activities ECC Enhancement Pack
6.0 2 4 5
Create Invoice-Level promise for payment

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

Real Experience. Real Advantage.

[ Streamline Customer-Facing Activities
SAP Collections Management
Streamline Customer Contact Activities ECC Enhancement Pack
6.0 2 4 5
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

Real Experience. Real Advantage.

[ 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

3. How to define 5. How to

1. How to define 4. How to set up
2. What data Is your collection generate
your your business
needed and strategies & worklists for
organizational partner
where? assign to prioritization
structure collection profile
collection groups and assignment

Real Experience. Real Advantage. 13

[ Key Learnings for a Successful Deployment & ROI
Before we begin. Lets 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 collectors
worklist

Real Experience. Real Advantage.

[ 1. How to define
your
organizational
structure
2. What data Is
needed and
where?
3. How to define
your collection
strategies &
assign to
4. How to set up
your business
partner
collection profile
5. How to
generate
worklists for
prioritization
collection groups and assignment

Mark Taylor
Collection
Company Specialist
Code 4000 /
Credit Laura Fortin
Segment 1000 Collection
Group Collection
Canada Specialist
Collection
Segment Jake Pelletier
Collection
Specialist
John Smith
Collection
Large Retailers Specialist
Company Code Collection Nancy Johnson
3000 & 1000 / Group Tom Jones
Credit Segment Substitute
Collection
2000 Specialist 01/01/09
01/20/09
US
Collection SME Customers Tina Miller
Segment Collection Collection
Group Specialist

Real Experience. Real Advantage.

[ 1. How to define
your
organizational
structure
2. What data Is
needed and
where?
3. How to define
your collection
strategies &
assign to
4. How to set up
your business
partner
collection profile
5. How to
generate
worklists for
prioritization
collection groups 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

Real Experience. Real Advantage.

[ 1. How to define
your
organizational
structure
2. What data Is
needed and
where?
3. How to define
your collection
strategies &
assign to
4. How to set up
your business
partner
collection profile
5. How to
generate
worklists for
prioritization
collection groups 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

Real Experience. Real Advantage.

[ 1. How to define
your
organizational
structure
2. What data Is
needed and
where?
3. How to define
your collection
strategies &
assign to
4. How to set up
your business
partner
collection profile
5. How to
generate
worklists for
prioritization
collection groups and assignment

Collection Collection Basic

Strategy Rules Rules

Risk Category
High to Medium Risk and
greater than 80% Credit
Limit Utilization
Valuation: 15 points
Credit Limit Utilization

Dunning Level

Collection Strategy for Past Due Invoices Over

Higher Risk SME 15 days Past Due &
Documents by posting
Customers Dunned One or More
key and document type
Times
Valuation: 20 points
Individual Items Overdue
Since N Days

Resubmission Due for

the Customer Resubmission Due for the
Customer
Valuation: 5 points

Real Experience. Real Advantage.

[ 1. How to define
your
organizational
structure
2. What data Is
needed and
where?
3. How to define
your collection
strategies &
assign to
4. How to set up
your business
partner
collection profile
5. How to
generate
worklists for
prioritization
collection groups and assignment

To Be Collected Amount Calculation

Dispute
Items with Items with
Total Cases not in Items Amount
Open a Current
Amount a To Be Arranged To Be
Promise to Dunning
Past Due Collected for Payment Collected
Pay Notice
Status

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
Real Experience. Real Advantage.
[ 1. How to define
your
organizational
structure
2. What data Is
needed and
where?
3. How to define
your collection
strategies &
assign to
4. How to set up
your business
partner
collection profile
5. How to
generate
worklists for
prioritization
collection groups and assignment

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
Regular strategy for collection during the month

Real Experience. Real Advantage.

[ 1. How to define
your
organizational
structure
2. What data Is
needed and
where?
3. How to define
your collection
strategies &
assign to
4. How to set up
your business
partner
collection profile
5. How to
generate
worklists for
prioritization
collection groups and assignment

Collection Specialist Assignment

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

Individual collection
specialist assignment in
the business partner
collection profile

Real Experience. Real Advantage.

[ 1. How to define
your
organizational
structure
2. What data Is
needed and
where?
3. How to define
your collection
strategies &
assign to
4. How to set up
your business
partner
collection profile
5. How to
generate
worklists for
prioritization
collection groups and assignment

Upon worklist
generation priority is
determined by the
valuation of each
collection rule within
the collection strategy
Real Experience. Real Advantage.
[ System Demonstration: Collection Strategies

Prioritization of a collectors workload based on your

departmental objectives and KPIs:
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

Real Experience. Real Advantage.

[ Text

Collection rules
within the collection
strategy

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[ Text Conditions within a
Collection Rule. If
all conditions are
true, then rule will
be valuated with 30
points.

Real Experience. Real Advantage.

[ Text
Simulation of
collection strategy
for a business
partner

Real Experience. Real Advantage.

[ Text

Determine if
expected
collection rules
have been valuated

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Simulation
results in a
High
Priority

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[ Text

High priority
consists of the
following
collection rules

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Now that your

collection strategy has
been refined,
regeneration of the
worklist will re-
prioritize your
collectors workload

Real Experience. Real Advantage.

[ Text Go to your
UDM_SUPERVISOR
transaction to view
workload allocation
and prioritization

Real Experience. Real Advantage.

[ 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 re-
determined accordingly

Real Experience. Real Advantage.

[

Thank you for participating.

SESSION CODE:
3513
Please remember to complete and return your
evaluation form following this session.
For ongoing education in this area of focus, visit www.asug.com. ]
Real Experience. Real Advantage.