Beruflich Dokumente
Kultur Dokumente
Karen Hartnett
SAP
Todays business issues
Wrap-up
Todays business issues
Wrap-up
Transaction Processing Time
1960s Today
45 - 60 days
Payment 45 - 60 days
(or more!)
Source:Killen&Associates, Inc.
SAP AG 2005, 4
The Dispute Dilemma
! 20% of all sales transactions have one or more data issues that
cause reconciliation problems and delay payment *
Company A
Deduction rate: 5%
Result:
o 5-10 days more in DSO
o 75% of credit and collection, A/R, and customer service resources spent
on deduction resolution
o Strained customer relations
Source: BusinessFinanceMag.com
SAP AG 2005, 6
Top Five Deductions Industry-Wide
Pricing errors
Advertising and promotional allowances Lost or damaged goods
Returned and refused merchandise Concealed shortages
70%
60%
50%
40%
% of respondents
30%
20%
10%
0%
Pricing Errors Advertising & Returns & Lost or Concealed
Promotional Refused Damaged Shortages
Allowances Merchandise Goods
Source: Credit Research Foundation
SAP AG 2005, 7
Types of Deductions
Intentional:
# Promotional or advertising related (for example, coupons, stocking
fees, quantity discounts, rebates)
# Anticipated, simply need better dispute management
Preventable:
# Pricing discrepancies, processing errors, disputes over terms,
confusion over promotions
# Identify root causes and address
Unauthorized:
# Unearned discounts, duplicate claims, unsupported short payments
(typically 10-20% of claims)
# Act quickly and aggressively with notification rejecting deduction;
repeat offenders need to be addressed
Source: BusinessFinanceMag.com
SAP AG 2005, 8
Can You Ever Eliminate Deductions?
15%
Legitimate
Deductions
Illegitimate
Deductions
85%
SAP AG 2005, 10
What to Do
Get Review
Recognize the
problem and executive your
determine its buy-in to dispute
severity, as address the resolution
systems dispute process
permit management
area
Identify a
solution to Determine
meet your your goals
goals for
improvement
(Hint: SAP)
SAP AG 2005, 11
Collections Shows the Whole Picture
SAP AG 2005, 12
Todays business issues
Wrap-up
SAP Dispute Management Is ...
SAP AG 2005, 14
Dispute Management an Example
2. Invoice
Billers ERP 3. Reduced payment (without reason) Customer
4. Automatic
creation 5. Email, letter
7. Posting
of a dispute
6a. Payment information
case
(telephone call, fax)
Real time
Direct
Postprocessing NO Open and assign a Assign, import the relevant data
clearing
bank statement possible dispute case such as invoice, billing document,
master data, etc.
YES
End
End
NO Reason
Determined by dispute
code
accounting clerk
known
YES
Workflow message to
Dispute case clarified and status set to clarified. person responsible
Info on the steps taken is stored in the Notes History
SAP AG 2005, 16
SAP Dispute Management
Customer
Customer AR-Clerk
AR-Clerk Sales
Sales Manager
Manager Quality
Quality Mgt.
Mgt. ...
...
Receivables
Production
Analyze
Campaign
Shipment
Billing
Order
Pay
Cash
Business process is managed within:
SAP AG 2005, 18
Dispute Management Screens
#Search cases
#My cases
#List of all cases where
the user is the processor
#Favorites
#Resubmission
#History
#List of objects that were
most recently processed
SAP AG 2005, 19
Basics of Dispute Management
Components of a case...
#Case attributes
#Title, processor, status,
reason, amount,
#Case notes
#for the documentation
of the processing of the case
#Case log
#History of actions performed
on the case
#Case record/linked
objects
#Customer, residual item,
word document,
transactions
SAP AG 2005, 20
Attributes of a Dispute Case
# Header, case ID
# Processor, coordinator,
responsible person
# Reason, status, priority,
escalation reason
# Amount fields
# Created/changed/
closed by/at
SAP AG 2005, 21
Amount Fields of Dispute Case
Original disputed
amount
Disputed amount
Amount Paid
fields
Credited
Cleared manually
Automatically written
off
SAP AG 2005, 22
Case Notes
#Different types of
Case Notes
(description, internal
memo, answer ...)
#Customizable
SAP AG 2005, 23
Case Record
# Business objects
# Office documents
# ArchiveLink
documents
# Transactions
SAP AG 2005, 24
Folder Structure of Linked Objects
Business partner
Disputed objects
Resolved objects
Other objects
Miscellaneous
SAP AG 2005, 25
Case Action Log
SAP AG 2005, 26
Dispute Case Locator
With the dispute case locator, the user can search for cases
SAP AG 2005, 27
My Cases
My Cases provides the user a list of all cases for which he is the
processor
SAP AG 2005, 28
Creating a Dispute Case
SAP AG 2005, 29
Create Dispute Cases from FBL5N
From the open item list, all marked items will be taken into the
dispute case
Items from different customers or companies and with different
currencies can be selected
SAP AG 2005, 30
Create Case from Financial Transaction
Process integration
! Update amount field Original Disputed Amount
Financial ! Link FI document to folder Disputed Objects
transaction ! Automatic derivation of field content
Create dispute
User action
case ! Enter data for a few fields
! Write a note
SAP AG 2005, 31
Create Dispute Case in Case Organizer
Cases
Dispute Case
Find
Create
Dispute Case - Search
Information
My Dispute Cases
Documents
SAP AG 2005, 32
Display Dispute Cases from FBL5N
Attributes of the dispute case can be added to the line item display
Dispute data can be accessed from the list
SAP AG 2005, 33
Update Case by Financial Transactions
Amount fields
! Original disputed amount
Financial ! Disputed amount
transaction ! Credited amount
! Paid amount
! Amount manually cleared
Update Dispute
Folders
Case
! Resolved objects
! Items assigned during clearing
SAP AG 2005, 34
Effect of Clearing a Disputed Item
A partial payment
is received
for a disputed item...
SAP AG 2005, 35
Effect of Clearing a Disputed Item (cont.)
A partial payment
is received
for a disputed item...
SAP AG 2005, 36
Splitting Dispute Cases by FB05
The user can split the amount of a residual item from the dispute
case and create a new case for this item:
Result
Original amount
of old dispute case
will be reduced and
the two dispute cases
are linked together
SAP AG 2005, 37
Correspondence
SAP AG 2005, 38
Example of Manual Correspondence
Select
correspondence
Select
external notes
SAP AG 2005, 39
Reporting
SAP AG 2005, 40
Example: Time Grid for Disputes
SAP AG 2005, 41
Implementation
Resources required
! Dispute Management/Accounts Receivable consultant
! ABAP consultant
! Basis consultant
SAP AG 2005, 42
Customer Enhancements for Default Values
Case Type
Category
Reason
Priority
Coordinator
Person responsible
Title
SAP AG 2005, 43
Customer Enhancements
SAP AG 2005, 44
Deployment for mySAP ERP 2004 (1 System)
SAP Dispute
SAP ECC 5.0 Management
(FI-AR) 3.0
SAP AG 2005, 45
Deployment for SAP R/3 Enterprise 4.7*
SAP AG 2005, 46
SAP Dispute Management Demo
SAP AG 2005, 47
Todays business issues
Wrap-up
SAP Collections Management
SAP AG 2005, 49
The Functionality
SAP AG 2005, 50
SAP Collections Management
Collections process
Process
Select Prioritize Prepare
receivables
customer customer receivables
per customer
accounts accounts for collection
account
SAP AG 2005, 51
Prepare Customer Contact
Collector can define layouts that allow him to view status of invoice at a
glance like
! Invoiced amount
! Open amount
! Paid
! Credited
! Promised
SAP AG 2005, 52
Prepare Customer Contact: Invoice View
SAP AG 2005, 53
Create Dispute Case: Example
SAP AG 2005, 54
Promise to Pay
For invoices that have been fully cleared, promises to pay can be
closed automatically
SAP AG 2005, 55
Create Promise to Pay: Example
Selected invoices
SAP AG 2005, 56
Deployment for mySAP ERP 2004
SAP AG 2005, 57
Deployment for SAP R/3 Enterprise 4.7
SAP AG 2005, 58
SAP Dispute Management Demo
SAP AG 2005, 59
Todays business issues
Wrap-up
FSCM Roadmap
Focus: Focus:
Biller Direct Biller Direct
Dispute Management integration, collection authorization
Dispute Management
Dispute Management
Credit Management*
Automation and prioritization, workflow integration, correspondence
Credit manager portal, credit rating,
credit rules engine
Collections Management
Manual worklists, promises to pay, integration with Dispute Management
Treasury and Risk Management
Parallel valuation area, position monitor, Credit Management
new instruments Credit Limit Check, Credit Analysis, Credit Eventing, Workflow
In-House Cash
Prima Nota, Integration with Cash and Treasury and Risk Management
Treasury and Risk Management
New instruments for foreign exchange and derivatives, Hedge Accounting,
* Pilot customers only
SAP AG 2005, 61 enhancements in Market and Credit Risk Analyzer
Resources
SAP AG 2005, 62
7 Key Points to Take Home
( Dispute and Collections Management is an important focus area for
most companies today
SAP AG 2005, 63
Your Turn!
Questions?
! No part of this publication may be reproduced or transmitted in any form or for any purpose without the express
permission of SAP AG. The information contained herein may be changed without prior notice.
! Some software products marketed by SAP AG and its distributors contain proprietary software components of other
software vendors.
! Microsoft, WINDOWS, NT, EXCEL, Word, PowerPoint and SQL Server are registered trademarks of
Microsoft Corporation.
! IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390,
OS/400, iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, Informix
and Informix Dynamic ServerTM are trademarks of IBM Corporation in USA and/or other countries.
! ORACLE is a registered trademark of ORACLE Corporation.
! UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
! Citrix, the Citrix logo, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, MultiWin and
other Citrix product names referenced herein are trademarks of Citrix Systems, Inc.
! HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C, World Wide Web Consortium,
Massachusetts Institute of Technology.
! JAVA is a registered trademark of Sun Microsystems, Inc.
! JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and
implemented by Netscape.
! MarketSet and Enterprise Buyer are jointly owned trademarks of SAP Markets and Commerce One.
! SAP, SAP Logo, R/2, R/3, mySAP, mySAP.com and other SAP products and services mentioned herein as well as
their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries
all over the world. All other product and service names mentioned are trademarks of their respective companies.
SAP AG 2005, 65