SAP Collections Management 6.

Application Solution Management mySAP ERP Financials

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Agenda
SAP Collections Management - Overview Roles and Processes Process Collection of Receivables Process Control Collections of Receivables Process Data Synchronization and Creation of Worklist Deployment Options and Availability Summary and Roadmap

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SAP AG

Agenda
SAP Collections Management - Overview Roles and Processes Process Collection of Receivables Process Control Collections of Receivables Process Data Synchronization and Creation of Worklist Deployment Options and Availability Summary and Roadmap

SAP AG 2005

SAP AG

What Is Collections Management?

Collections Management is an established expression for customer centric receivables management* Collections Management supports
Evaluation, identification, stratification and prioritization of accounts
From a risk management perspective From a customer relationship perspective

Proactive collection of receivables

Payment reminders Promise to pay arrangements Follow ups

Process optimization and automation for high volumes of open items Workforce Management

* Definition: Meta Group

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Collections Management Important Business Issue

Increasingly bad payment behavior
Increasing DSO No reaction on automatic correspondence like dunning Financial situation influences customer relationship

Collections Management is today mostly a time-consuming, costly and cumbersome process

Select and prioritize customers to be collected Search for account information High volumes

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What are the Business Objectives?

Increase share of collected receivables
Reduce DSO Avoid write-offs Increase payments on time

Decrease cost of cash collection Improve Customer Relationship Management

Retain valuable customers and convert difficult customers by providing the right interaction in delicate scenarios Provide complete picture of customer history Increase customer satisfaction

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How Does SAP Collections Management Help?

SAP Collections Management provides collection strategies that allow to select and prioritize customers for the collection of receivables. Collection strategies are the basis for the automatic creation of daily worklists for collection specialists.
Worklists ensure evaluation, identification, stratification and prioritization of customers according to collection strategy Daily worklists improve user productivity and efficiency

SAP Collections Management offers special collection procedures to document and react on customer contacts
Promise to pay agreements Dispute cases (via integration with SAP Dispute Management) Resubmissions Customer contacts

Collection managers will find a variety of options to control the collection of receivables
Define and adapt strategies Maintain collection groups Workforce management by reassigning worklist items and monitoring degree of worklist processing

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Agenda
SAP Collections Management - Overview Roles and Processes Process Collection of Receivables Process Control Collections of Receivables Process Data Synchronization and Creation of Worklist Deployment Options and Availability Summary and Roadmap

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Roles And Processes in SAP Collections Management

2 Roles

Collection Specialist

Collection Manager

Is responsible for

Is responsible for

Collection of Receivables

Control Collection of Receivables

Data synchronization and creation of worklist

3 Processes
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Collections Management supports 3 roles and 3 main processes. The two roles are Collection specialist Collection manager The three processes are Collection of receivables Control collection of receivables Data synchronization and creation of worklist

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Two Roles: Collection Manager and Collection Specialist

Collection Group

Collection Specialist Collection Manager

Main Tasks: Define or adapt collection strategies Keep collection groups up-to-date Adjust business partners in Collections Management Supervise collection process

Collection Specialist

Collection Specialist

Main task is to process the daily worklist: Prepare customer contact Contact customer Document customer contact

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There are two main role involved in collections management: Collection Manager Collection Specialist The collection manager heads a group of collection specialists. He or she is in charge of defining collection strategies according to the companys financial goals. The collection manager is also responsible for the workforce management of his or her group. He or she can re-distribute worklist entries among specialists of the group and maintain substitutes if the regular collection specialist of and has the option to check the degree of worklist processing. The collection specialist is responsible for collecting open receivables by contacting the customers according to their prioritization on his or her worklist.

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Process: Collection of Receivables

Collection Specialist

Access worklist

Prepare Customer Contact

Contact Customer

Get overview of all worklist entries Check degree of worklist processing

Check valuation of customer according to collection strategy Get overview of customer account - View past contacts - View past payments - Check resubmissions Select contact person

Create promises to pay Renew promises to pay Create dispute cases Create resubmissions Document customer contact

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The collection specialist is responsible for collecting receivables according to the collection strategy. He or she gets a daily worklist that contains all customers that are to be contacted. The customers are already prioritized according to the collection strategy which is assigned to the collection specialists collection group. The collection specialist can re-prioritize the worklist if necessary. For the preparation of the customer contact a lot of information is available on the worklist and also in the function Process Receivables (customer account view). The collection specialist can check the main key figures of the customer, the outcome of past customer contacts, the detail valuation of the customer based on the collection strategy etc. The collection specialist needs to document each customer contact. Create promises to pay if the customer promises to pay open invoices. Create dispute cases for disputed invoices. Set resubmission if e.g. the right customer contact is not available for a certain period of time. Summarize the customer contact as a whole. It is also possible to document customer contacts that were not successful.

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Process: Control Collection of Receivables

Collection Manager

Define collection strategies*

Maintain collection groups

Adjust Business Partner Master Data

Supervise collection process

Create collection strategies Adapt collection strategy Assign strategy to collection group(s)

Assign specialists to collection groups Enter substitutes for specialists Assign strategy to group Assign group to collection segments

Assign collection specialists Temporary assignments

Check degree of worklist processing View worklists of all groups Re-assign worklist items

* No technical expertise necessary

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This process is performed by the collection manager. He or she is responsible for the execution of the collection of receivables according to the companys collection strategy. The collection manager is responsible for the definition and creation of collection strategies and the execution of these strategies through collection specialists. Collections rules and strategies can be created in the system without any coding. Collection strategies can easily be adapted e.g. by changing values of collection rules within a strategy or by adding or removing collection rules. The collection manager decides according to which collection strategy his or her collection group should collect receivables. All collection specialists within one group work with the same collection strategy. The collection manager decides which collection specialist and / or collection group is responsible for the customer. It is also possible to assign a customer temporarily to a special collection department if necessary. The creation and allocation of worklist items is performed by a report that should be scheduled on a daily basis. The collection manager can re-assign worklist items to other specialists of a collection group if required. The collection manager can supervise the collection process by controlling the degree of worklist processing.

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Process: Data Synchronization and Creation of Worklist

Replicate customer master data

Transfer data from Accounts Receivable

Create worklists

Monitoring

Master data synchronization Contact persons Collections Mgt. specific data

Initial transfer Periodic transfer Selected transfer

Create worklist items Distribute unassigned items

Monitor master data synchronization Monitor parallel runs

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The process lines out that before creating worklists it is necessary to replicate customer maser data and to transfer data from Accounts Receivable. It is typically the system administrator who is responsible for this process. Since the system administrator is no specific role in Collections Management it is not described here.

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Agenda
SAP Collections Management - Overview Roles and Processes Process Collection of Receivables Process Control Collections of Receivables Process Data Synchronization and Creation of Worklist Deployment Options and Availability Summary and Roadmap

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Functionality Supporting Process Collection of Receivables

Collection Specialist

Access worklist

Prepare Customer Contact

Contact Customer

Automatically created Personalization Search function Statistics

Key figures per worklist item Valuation detail Due date grid Invoice overview Overview of past payments Overview of past contacts Overview of resubmissions

Promises to pay Dispute cases Resubmissions Customer contact

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In this section you will find per process step which functionality is offered by SAP Collections Management.

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Collection Worklist
Each collection specialists gets a daily worklist containing all customers that should be contacted. Customers are valuated and prioritized according to collection rules in a collection strategy.
Aging of receivables per selected customer Detail valuation of customer per collection rule

Link to business partner Search for other business partner

Summarizes information concerning - Customer account in Accounts Receivable - Past collection activities - Credit Management

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Collection worklists are created automatically on a daily basis. Each collection specialists gets a worklist containing all customers that are to be contacted by him or her. Note that the worklist is based on historical data. It is not automatically updated by incoming payments etc. after the worklist has been created.

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Main Features of the Collection Worklist

Automatic creation of worklists based on collection strategies Summarized information per customer regarding
Customer account in Accounts Receivable Past collection activities Credit Management data

Detail information per customer about

Valuation according to collection strategy Aging of the customers receivables (due date grid)

Search function (view other customer account or other worklist) Navigation to business partner master from the worklist Statistics about degree of worklist processing

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Worklist as Starting Point for Customer Contact

1 Select worklist item and view data
Maximum amount to be collected

2 View valuation of customer according to collection strategy

3 View aging of customers receivables

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The worklist is the starting point for each customer contact. Select the worklist item with the highest priority on the worklist. Check key figures of customer, especially which amount you are suppose to collect at maximum according to the strategy. View valuation of the customer according to the strategy. You will see exactly which collection rules are met and what is the valuation per rule. View aging of receivables. In the slide above you can see that most of the customers receivables are overdue more than 90 days.

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Function Process Receivables: Main Area During Contact

To contact the customer, the collection specialist navigates from the selected worklist item to the function Process Receivables. This function offers detailed customer information and supports various collection activities.

Navigation

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If you want to contact a customer you select a worklist item and navigate to the function Process Receivable. This is the main area for the collection specialist during the customer contact. Here you get detail information about the customer account in a specific collection segment.

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Information in Process Receivables to Prepare Contact

The collection specialist receives the following information per customer in a collection segment
All open invoices of customer account with their current status with the option to
View promises to pay per invoice View dispute cases per invoice View invoice history Define various display layouts

Past payments navigation to payment history possible Open promises to pay navigation to detail view possible Open dispute cases navigation to detail view possible Past customer contacts navigation to detail possible Open resubmissions navigation to detail possible Customer contact person navigation to all contact persons per customer possible

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Process Receivables: Open Invoices

On the tab page Invoices the collection specialist gets an overview of all open invoices of a customer in a collection segment. Per invoice the status is displayed including the amount invoiced, open amount, disputed amount, amount promised to pay, state of promise etc.

View invoice history of selected invoice

View promises to pay per selected invoice

View dispute case(s) per selected invoice

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The overview of all open invoices shows you at a glance the status per invoice including Amount invoiced, Invoice date, Open amount, Amount paid, Amount credited, Amount promised, Promise for date, Level of promise to pay, State of the promise (open, broken, partially kept), Amount dunned, Dunning level, Date of last dunning, Amount disputed, Dispute case id (if several dispute cases exist, an * is set), Status of dispute case (if several dispute cases exist, an * is set) among other fields. You can define your own layouts according to your business needs. Unassigned credit amounts such as credit memos without invoice reference or payments on account are shown as a total in one line. Double click to show the corresponding. Additionally, you can get detailed information per invoice Invoice History List of all promises to pay per invoice (history showing also already inactive promises) List of all dispute cases per invoice (could be several if several open items are disputed in different cases) Please note that different to the worklist all data in the function Process Receivables reflect the most upto-date status whereas the worklist is based on data that has been transferred to Collections Management before. Thus, there can be differences between data on to worklist and data in Process Receivables.

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Process Receivables: Past Payments

The overview of past payments allows collection specialists to check past payments of the customer he or she is contacting. The payment history lists all invoices that have been fully or partially paid by the selected payment.

Payment History for selected payment

All documents related to the payment are highlighted

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On the tab page Payments you can view all past payments of a customer in a collection segment since a specific date. The function History allows you to display which invoices have been paid or partially paid with the selected payment. All documents related to the payment are highlighted Search functionality for the FI invoice number available Examples: With the payment of 11,000 EUR in the screen above the invoice 1800000114 has been paid completely. The invoiced amount is 2,000 EUR. The payment amount assigned to the invoice is also 2,000 EUR. Invoice 1800000116 has only been paid partially. The invoice amount is 4,000 EUR but only 2,500 EUR have been assigned. This amount has been fully assigned to the invoice. A payment difference of 1,500 results for which a residual item was posted with document number 1400000193.

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Process Receivables: Past Customer Contacts

Past customer contacts include data such as contact date and time, result of contact, contact person, number of dispute cases and promises to pay created during the contact and the first line of the note. Navigation to detail information per customer contact is possible. View complete View assigned note dispute cases View assigned promises to pay View assigned resubmissions First line of note Number of dispute cases

List of dispute cases per selected customer contact

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The overview of past customer contacts enables you to better prepare for the customer contact. All relevant information such as the contact date, contact time, contact person, note and result code can be seen at a glance. You can get detail information per customer contact: View complete note. View list of assigned dispute cases. View list of assigned promises to pay. View list of assigned resubmissions.

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Collection Activities During Customer Contact

The collection specialist has the following possibilities to document his or her collection activities
Create promises to pay Create dispute cases Create resubmissions Document the customer contact itself

The starting point for most collection activities is the overview of open invoices

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Promise to Pay Process

Hello Mrs. Brown, did you recognize that invoice 4711 has been overdue since 4 weeks?

Hello Mr. McFee, thank you for reminding me. We will pay the full amount by Wednesday next week.

Collection Specialist Tom McFee

Accounts Payable Manager Sue Brown

Promise to Pay
Promised amount Promised to date Promised by Note Invoice reference

Tom Miller enters promise to pay in the system

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With SAP Collections Management you can create a promise to pay in the system that has been given by the customer.

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Promise to Pay in SAP Collections Management

Customer promises to pay one or several invoices
Collection specialist creates promise to pay
Creation possible for one or several invoices Promise is traced on single invoice level

Collection specialist renews promise to pay

Existing promises can be renewed Renewed promised get higher promise level

Promises to pay are updated by incoming payments

State kept if incoming payment equals promised amount State partially broken if payment amount is smaller than promised amount

Promises that are not kept get state broken

Customers with broken promises will automatically appear on the worklist if defined so in the collection strategy

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Create Promise to Pay

The collection specialist can create a promise to pay in the system for the selected invoices. The total of all open amounts is proposed by the system as promised amount. If the promised amount is less than the proposed amount, the promised amount can be distributed to the invoices.

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You can create a promise to pay for one or several invoices. The system proposes the total of all open amounts as the promised amount. You can use the proposed amount. You can overwrite the proposed amount. If you have selected several invoices and you want to enter a promised amount at invoice level, you can leave the promised amount blank. You have to enter a promised for date. The system proposes the current date as the promised on date. You can enter a note to further document the promise to pay. Note: Even if you select several invoices, the system will always create one promise to pay per invoice in order to enable the tracing of promises to pay per invoice.

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Dispute Cases in SAP Collections Management

Collection specialist can create dispute case for one or several invoices
System offers all open items of selected invoices for selection of disputed items Collection specialist selects disputed items Collection specialist enters all required information and saves dispute case Dispute resolution process can start immediately

Collection specialist can collect disputed amount of dispute cases where the status is to be collected
If the outcome of dispute resolution is that the dispute was not justified, the dispute case gets the status to be collected Status to be collected is used in collection rule, customer with dispute cases of this status will appear on the worklist Status of dispute case is displayed per invoice

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Create Dispute Case

The collection specialist can create a dispute case for the selected invoices. The total of all open amounts is proposed by the system as disputed amount. The collection specialist can enter all necessary information such as dispute reason and a note.

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You can create a dispute case directly in Collections Management from the invoice view. You can select one or several invoices. If more than one invoice is selected or if one invoice has more than one residual item, the system offers all open items for selection. The contact person data is automatically transferred to the dispute case. You can enter all dispute data in the same dialog box as in the Accounts Receivable system.

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Resubmission
Collection specialists can set a resubmission for a customer. They can enter a note and a resubmission reason. The customer will re-appear on the worklist at the resubmission date. It is also possible to suppress a customer from the worklist until the resubmission date. Create resubmission

Overview of existing resubmission

Suppress customer from worklist until resubmission date

First line of note

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Resubmissions represent specific reasons why a customer needs to be contacted again You can create resubmissions on the tab page Resubmission. By creating a resubmission you can intervene the automatically created worklist: If you can create a resubmission the customer will re-appear on the worklist when the resubmission date is reached. Prerequisite is that the collection strategy contains a corresponding collection rule. You can suppress the customer from the worklist by setting the flag no contact until resubmission date. The customer will not appear on the worklist even if other collection rules of the collection strategy are fulfilled. Resubmissions can be changed, for example, postponed by entering a new resubmission date. You need to confirm a resubmission manually when the reason for the resubmission is settled. You get on overview of all resubmission that have not be confirmed so far.

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Create Customer Contact

The collection specialist can document the outcome of the whole customer contact. Dispute cases, promises to pay and resubmissions created during the contact will be automatically assigned. A default note is set by the system and can be enhanced by the specialist.

Controls if worklist item remains on worklist or will be removed

Default note automatically created by the system

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Customer contacts enable you to get an overview of the outcome of past contacts with the customer and to track your activities. You can create a customer contact during the contact or after having contacted the customer. A dialog box will show up when you return to the worklist: If you have created dispute cases or promises to pay during the customer contact it is mandatory to document the customer contact. If you have not created dispute cases or promises to pay you can create a customer contact. You need to set a result type. The result type controls the following: If the workitem remains on the worklist or will be removed (status is set on open or confirmed) Statistics of the worklist When the system determines the last customer contact for creating the worklist, it only considers those customer contacts where the result was reached. You can define various result types in Customizing.

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Agenda
SAP Collections Management - Overview Roles and Processes Process Collection of Receivables Process Control Collections of Receivables Process Data Synchronization and Creation of Worklist Deployment Options and Availability Summary and Roadmap

SAP AG 2005

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New Functionality for Process Control Collection of Receivables

Collection Manager

Define collection strategies

Maintain collection groups

Adjust Business Partner Master Data

Supervise collection process

Collection rules Collection strategy

Collection group

Business partner Collection profile

Allocate worklist items Control statistics

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This process is performed by the collection manager. He or she is responsible for the execution of the collection of receivables according to the companys collection strategy.

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Collection Rules
Collection rules reflect the reason why a customer is to be contacted. A collection rule formulates the prerequisites and conditions that a customer in a collection segment must fulfill in order to receive valuation points. SAP delivers various collection rules in the standard. Collection rules are listed for each collection strategy.

Prerequisite
(Optional)
Risk Class

Condition
Total of Open Items Due Since N Days Examples Broken Promises to Pay

=
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Collection Rule

A collection rule formulates prerequisites and conditions that a customer in a collection segment must fulfill in order to receive valuation points. Rules are listed for each collection strategy. These rules reflect the reasons why a customer is to be contacted. For rules where parameters are required for the prerequisites or conditions (for example, amount limits or time intervals), you have to enter these parameters when you maintain the strategy.

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Data Sources for Collection Rules

SAP Accounts Receivable

Open Item Data Dunning Data Payment Data Customer Data

SAP Dispute Management

Dispute Case Data

SAP Collections Management

Promise To Pay Data Contact Data Resubmission Data

SAP Credit Management

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Risk Class Credit Limit Utilization

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Collection Strategies
Collection strategies comprise company-specific rules for collecting receivables Collection strategies have the following purpose
Determine which customers are to be contacted in Collections Management (basis for automatic worklist creation) Prioritize customers on the collection worklist Define the currency in which the amounts are to be displayed on the worklist Determine the time intervals of the aging of receivables per customer in a segment (Due date grid) Define the type of integration with dunning in Accounts Receivable Accounting Determine the influence of the terms of payment on Collections Management (consideration of cash discounts)

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Collection Strategies comprise company-specific rules for collecting customer receivables. They determine the selection and prioritization of customers to be contacted. Based on the collection rules in a collection strategy the worklists of collection specialists are automatically created.

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Maintain Collection Strategy

The collection manager decides based on which collection rules customers are to be contacted. The corresponding collection rules are assigned to the strategy. Per rule the collection manager enters the relevant parameters and the valuation points a customer receives when he fulfills the rule.

Determines structure of Due Date Grid

Enter parameters of collection rule

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Within a collection strategy you list all collection rules that are relevant to valuate your customers. A rule can be designated as a valuation rule by entering valuation points or as an exit rule. If the condition for an exit rule is fulfilled, no worklist item is created for the business partner in the segment concerned. You need to enter parameters per collection rule in order to specify the rule. Example: In collection rule CR0000013 the following parameters have been entered: - Total promised amount: more than 10 EUR - Level of promise to pay: larger than level 1 Parameter values influence the description of a collection rule. You can use one collection rule several times in a strategy by entering different parameter values (see rule CR000002A on the slide above). A customer in a segment (worklist item) is valuated according to the rules of the collection strategy. The points of all rules applicable are added together and result in the valuation. The maximum valuation is the maximum number that a customer can reach for a strategy. Using the ratio of points actually reached for the maximum valuation, the system calculates the percentage rate that defines the priority of the customer on the worklist.

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Collection Group Assignment Of Specialists

A collection group consists of collection specialists who are to make contact which customers to collect receivables. The collection manager defines collection groups in the Collections Management system. For each specialist it is possible to enter a temporary substitute, for example, in the case of vacation.

Specialists

Temporary Substitutes

Collection Group US East

Collection Specialist Henry Smith

From 07/18/ to 07/22

Collection Specialist Tom McFee

Collection Specialist Henry Smith

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A collection group consists of collection specialists that are to make contact with customers in order to collect receivables. As collection manager you define your collection groups in the Collections Management system. For each collection specialist you can also enter a temporary substitute (for example, for vacation or sickness). When the specialist is absent, the system assigns the worklist items to the substitute.

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Collection Group and Collection Strategy

All specialists in a collection group collect open receivables with the same collection strategy. This ensures that the performance of all specialists in a group is comparable. The collection manager assigns a strategy per group. One strategy can be assigned to several groups.

Define and adjust strategies

Collection Strategy A

Collection Manager

Define and adjust groups

Collection Group US East

Collection Strategy B

Assign strategies to groups

Collection Group US West

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All specialists in a collection group collect open receivables from customers with the same strategy. The worklists of all collection specialists in a group are therefore created based on the same collection strategy. Using the same collection strategy ensures that the performance of all collection specialists within a group is comparable. A collection strategy can be assigned to several collection groups.

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Business Partner in Collections Management

Business partners in Collections Management have the role Collections Management and are assigned to a specific collection profile. Collection groups and specialists are assigned. A business partner is valuated according to the collection strategy of the assigned collection group. The collection manger can assign a different specialist or a temporary collection group and specialist.

New business partner role

Per collection segment is assigned Collection group Collection specialist

Temporary assignments possible

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Customers that should be considered in Collections Management need a business partner master in the role Collections Management. A collection profile has to be assigned to the business partner. This is done automatically by a program which has to be scheduled regularly. Collection segments and the default collection group per segment are automatically derived from the assigned collection profile. You can assign a regular collection specialist per collection segment and group. You can assign temporarily a different collection group to the business partner if necessary such as a special collection group if the payment behavior decreases. Customers are automatically replicated to business partners using the function master data synchronization.

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Supervise Collection Process

Collection Manager Helen Green

Supervise

Collection Specialist Henry Smith

Collection Specialist Tom McFee

Collection Specialist Caroline Cash

Collection Specialist Gordon Duffy

Collection Group US East

Collection Group US West

Show worklists of all specialists Show statistics (degree of processing) Re-assign worklist items
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The collection manager is supposed to supervise the process of collecting receivables. He or she needs to check the degree of worklist processing and if necessary re-assign worklist items from specialist A to specialist B.

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Allocation of Worklist Items to Collection Specialists

The collection manager can view all worklist items assigned to his or her collection groups. The worklist items are allocated automatically to the collection specialists. The collection manager can re-allocate worklist items among specialist of one group. Example: A collection specialist will not be able to finish his or her worklist during the day.

Worklist items of all collection groups

Reallocation only possible to other specialists of the same collection group

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In general, all worklist items are automatically allocated to collection specialists during the creation of the worklist. However, the manual allocation of worklist items can be necessary because of the following reasons: No collection specialist has been assigned to the segment data of the business partner and during the worklist creation the indicator distribute items has not been set. A collection specialist has become sick and the worklist has already been created. His or her worklist items need to be distributed to other collection specialists of the group. A collection specialist will not be able to finish his or her worklist and thus the remaining items need to be distributed to other specialists of the group. You are only allowed to allocate worklist items to other collection specialists of the same group. Collection specialists need to refresh their worklist after the allocation.

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Supervise Progress of Worklists Processing

The collection manager can view the worklist statistics of all collection groups he or she is responsible for. The statistics show the total number of worklist items, the number of open worklist items, the number of completed worklist items where the contact person was reached and the number of completed worklist items with an unsuccessful contact.
Number of open worklist items No. of completed worklist items where the customer was reached No. of completed worklist items where the customer was not reached Total number of worklist items

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The statistics show the status of all worklist items per collection specialist. You can create a layout that allows to show the statistics per collection group and priority of the worklist item. The status of a worklist item is determined by customer contacts: No customer contact so far: worklist item has status open. Customer contacted and contact result is not reached: worklist item has status not reached. Customer contacted and contact result is reached: worklist item has status reached.

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Agenda
SAP Collections Management - Overview Roles and Processes Process Collection of Receivables Process Control Collections of Receivables Process Data Synchronization and Creation of Worklist Deployment Options and Availability Summary and Roadmap

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Process: Data Synchronization and Creation of Worklist

Replicate customer master data

Transfer data from Accounts Receivable

Create worklists

Monitoring

Customer /Vendor Integration Create role Collections Mgt. Change collection segment data
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Initial transfer Periodic transfer Selected transfer

Create worklist items Distribute worklist items

Monitor master data synchronization Monitor parallel runs

The process lines out that before creating worklists it is necessary to replicate customer maser data and to transfer data from Accounts Receivable. It is typically the system administrator who is responsible for this process. Since the system administrator is no specific role in Collections Management it is not described here.

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Master Data Synchronization

The creation of worklists requires that customer master data is replicated to business partners. This replication is performed by the function Customer/Vendor Integration (CVI) as part of the new cross function Master Data Synchronization.

Leading customer master data for Collections Management

Customer Electronics Inc.

Title and names Search terms Standard Address Bank details Company code specific data

Business Partner Electronics Inc.

Role General BP Role CVI: FI Customer

Customer / Vendor Integration

Accounts Receivable Collections Management

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Master data synchronization means: Newly created customers are replicated to business partners. SAP delivery Customizing enables the replication of a customer to a business partner of type organization with the role general business partner and the role CVI: FI Customer. Changes of the customer master are synchronized with the corresponding business partner. Newly created business partners are replicated to customers. Changes of business partners are synchronized with the corresponding customers. Although synchronization is possible in both directions the leading master data for customers in Collections Management is the customer master in Accounts Receivable.

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Replication of Contact Persons

Contact persons that are maintained in the customer master record are also replicated to business partners. The business partner created for the customer (here Electronics Inc.) has the relation has contact person to the business partners that were created for the contact persons.

Relation

Business Partner Henry Smith

H
H as co nt ac

Customer Electronics Inc.

Business Partner Electronics Inc.

Contact persons: - Henry Smith - Helen Back

as

co nt ac tp er so n
tp er so n

Business Partner Helen Back

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Business Partner Relation Has Contact Person

Business Partner Electronics Inc. (Customer)

Attributes of relation Has Contact Person

Communication data: Telephone number Calling hours Visiting hours e-mail address Address data (in company)

Business Partner Henry Smith (Contact Person)

Used by Collections Management in the collection workist

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Collections Management relevant data is stored as attributes of the relation between the business partner for the customer and the business partner for the contact person. The following data are used by the worklist in Collections Management: Telephone number Calling hours (the worklist shows the next calling hour of today) Visiting hours (the worklist shows the next visiting hour of today) All other functions of Collections Management such as Create customer contact Create promise to pay Create dispute case use data of the contact persons maintained in the customer master. Nevertheless, you can use the business partner data of the contact person in Collections Management to display contact persons.

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Complete Business Partner Master Data

To make business partners available for Collections Management, the following steps are necessary:
Report: Assign/Change Business Partner Collection Profile

Create business partner role Collections Management

Assign collection profile

Assign collection group different to default group (optional)

Assign collection specialist (optional)

Report: Change Business Partner Segment Data

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Create Role Collections Management and Assign Profile

The report Assign/Change Business Partner Collection Profile creates a collection role and assigns a collection profile according to the entered select options. Collection segments and groups are derived according to Customizing. Optionally, the report can be used in conjunction with a Business Add-In where company specific rules to assign collection profiles can be defined. Select Options

2 Options for Use

Result of Report 1 2

Target Collection Profile

3 1 2 3
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Collection role is created Collection profile is assigned Collection segments with default collection groups are assigned

No specialist assigned yet

In order to create the role Collections Management for the replicated business partners and assign a collection profile run report Assign/Change Business Partner Collection Profile. Alternatively, you can use the report to replace an existing collection profile of selected business partners. The upper part of the selection screen above consists of selection criteria: Business partner selection criteria Credit Management selections Note: Only business partners that fulfill all selection criteria will be taken into consideration. In the lower part you can enter the collection profile you wish to assign to all business partners that meet the selection criteria. By implementing Business Add-In Determination of Profile for Business Partners you can create your own rules how a collection profile should be assigned to a business partner. The report will then assign collection profiles according to the rules you have implemented in the BAdI. The result of running this report is that a business partner exists in the role Collections Management and is assigned to a collection profile. Per collection segment the default collection group that has been set up in Customizing is assigned.

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Change Business Partner Segment Data

With the report Change Business Partner Segment Data it is possible to assign a collection group different to the default group and/or to assign collection specialist to the business partner. Optionally to the entered target group or specialist, a Business Add-In can be implemented to define company specific rules how to assign groups and / or specialists. Select Options

Result of Report

Target group and Specialist (optional)

1 2

Correct collection group is assigned per Segment Collection Specialist is assigned per Segment

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If you want to assign a collection group per segment different to the default group and/or assign a collection specialist to the business partner per segment you need to run program Change Business Partner Segment Data. Alternatively, you can use the report to replace an existing collection group and/or specialist of selected business partners. The upper part of the selection screen above consists of selection criteria: Business partner selection criteria Credit Management selections Note: Only business partners that fulfill all selection criteria will be taken into consideration. In the lower part you can enter the collection group and collection specialist you wish to assign to all business partners that meet the selection criteria. By implementing Business Add-In Determination of Collection Group and Specialist per Segment you can create your own rules how a collection group and / or collection specialist should be assigned to a business partner. The report will then assign collection groups and or specialist according to the rules you have implemented in the BAdI The result of running this report is that a business partner segment data has been adapted: the proper collection group has been assigned and the right collection specialist has been assigned. This report needs to be scheduled regularly before creating the worklist. You can use the created on field to only select newly replicated business partners.

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Data Transfer from Accounts Receivable

Prerequisite for creating a worklist is to transfer data from Accounts Receivable to Collections Management. The report Send FI-AR relevant Data to Collections Management only transfers data of company codes relevant for Collections Management.

Open Items
(reduced fields)

Report:
Last Payments
Send FI-AR relevant data to Collections Management

Collections Management

Customer Key Figures Business Partner Key Mapping

Accounts Receivable
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In order to create a worklist you first need to transfer data from Accounts Receivable to Collections Management. The sending report does not transfer all open items to Collections Management. Only data relevant for Collections Management is transferred. You can, for example, exclude certain company codes or consider only direct payers. These settings are done in Customizing (see unit 6).

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Types of Data Transfer from Accounts Receivable

Initial data transfer Transfers data of all company codes that participate in Collections Management (full update). This type of transfer activates the delta update capability. Periodic data transfer: Only new data and changed data is transferred (delta transfer). This option is used for the regular data transfers from Accounting. Data transfer according to selection This type of data transfer is used in exception situations to rebuild selected customers in Collections Management.

Three types of data transfer

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You can choose the following types of data transfer: Initial Data Transfer: You usually run the program once with this option (initial load transaction). In doing this, you transfer data of all company codes defined in Customizing that participate Collections Management (full update). The initial load activates the trigger table. Periodic Data Transfer: You then run the program regularly with the option Periodic Data Transfer. In this case, only data that has been changed is considered (delta update). Data Transfer According to Selection: You use this option in exception situations to rebuild selected customers or company codes in Collections Management.

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Creation of Worklist Two Parts

The report to create worklists comprises to parts. In the first part the creation of worklist items takes place. All business partners that have open items are selected and valuated per collection segment according to the collection strategy of the assigned collection group. The worklist item is assigned to the regular specialist. Unassigned worklist items are distributed according to distribution method.

Creation of Worklist Items

Distribution of Unassigned Worklist Items

Select business partners

Valuate according to strategy

Store worklist items*

Distribute according to distribution method**

*assigned to regular specialist ** standard method is equal distribution

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The creation of worklists for collection specialists comprises two parts Creation of Worklist Items Distribute Worklist Items (only if not directly assigned before).

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Equal Distribution of Unassigned Worklist Items

Worklist Items Assigned Directly Worklist Items distributed by worklist creation Unassigned Worklist Items

47 Worklist Items
(Average valuation 76 %)
Worklist Item 1 Worklist Item 2 Collection Specialist Henry Smith Worklist Item 3 Worklist Item 5 98 % 95 % 92 % 88 %

1 1 1 1

Worklist Item 1 Worklist Item 2 Worklist Item 3 Worklist Item 4 Worklist Item 5

98 % 95 % 92 % 89 % 87 %

50 Worklist Items
(Average valuation 71 %)
Worklist Item 4 89 %

Collection Specialist Tom McFee

Distribution according to following rules:

1. Distribute to specialist with lowest number of worklist items 2. If number is equal distribute to specialist with lowest average valuation

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The distribution method delivered in standard distributes unassigned worklist items as follows: All unassigned worklist items belonging to one collection group are distributed evenly to specialists of the group Unassigned worklist items are sorted by percentage valuation. The distribution program starts to distribute the worklist items in the sequence of their percentage valuation following the rules: First priority is to distribute to the specialist with lowest number of workflow items. If the number of worklist items per specialist is equal for all specialists of the group distribute to collection specialist with the lowest average valuation of all his or her assigned worklist items. Example: Worklist items 1 3 are assigned to Henry Smith since he has 3 items less assigned to him compared to Tom Miller. Since after the distribution of items 1-3 Henry and Tom have the same number of worklist items, the system has now to check which collection specialist has the lower average valuation of all assigned worklist item. Toms average valuation is lower than Henrys. Thus, worklist item 4 is assigned to Tom. Worklist item 5 is assigned to Henry since Henry has now 50 worklist items whereas Tom has already 51. Note: you can create your own distribution method by implementing a BAdI.

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Monitor Parallel Runs

The monitor for parallel runs supports monitoring of the reports to assign/change collection profiles, creation of worklists and distribution of items to collection specialists. Besides viewing the log it is possible to edit runs. Example: you can delete old worklists.

1 2
Select run

Choose relevant program

Edit runs

Analyze log

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You can monitor all parallel runs from one monitor. The monitor can be used for the programs Assign / Change Collection Profile of Business Partners Create Worklist Distribute Items to Collection Specialists The monitors offers the possibility to process runs: Release run Restart run Stop run Delete run (recommended for old worklists) You can analyze the log of a selected run.

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Big Picture Interdependencies of Processes

Master Data Synchronization

Create Collection Profile for New Business Partners

Adjust Business Partner Segment Data

Define / Adjust collection strategies

Collection Manager

Maintain Collection Groups

Collection Manager

Maintain Business Partner Segment Data

Collection Manager

Transfer Data from Accounts Receivable Evaluation of promises to pay

Creation of Worklists Collection of Receivables

Collection Specialist

Supervise Collection of Receivables

Collection Manager
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The slide should give you an overview of all processes described before.

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Agenda
SAP Collections Management - Overview Roles and Processes Process Collection of Receivables Process Control Collections of Receivables Process Data Synchronization and Creation of Worklist Deployment Options and Availability Summary and Roadmap

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Deployment Scenarios

SAP Collections Management 6.0 can be set up in two different ways One-System Scenario
Accounts Receivables Accounting in mySAP ERP 2005

Two-System Scenario
Accounts Receivable Accounting in mySAP ERP 2005 Accounts Receivable Accounting in mySAP ERP 2004 Accounts Receivable Accounting in SAP R/3 Enterprise 4.7

SAP AG 2005

SAP Collections Management consists of two main software components: One component for the creation of worklists, promises to pay, customer contacts and resubmissions: Software component is Financial Basis 6.0. One component for Receivables Processing in Accounts Receivable Accounting (FI-AR): Software component is R/3 Plug-In 2004.1 SP 10 for SAP Enterprise 4.70 and mySAP ERP 2004. By reason of customer master replication, SAP ECC 6.0 is needed either in the Collections Management system or in the Accounts Receivable system. SAP Collections Management can be set up in two ways One system scenario: Accounts Receivable Accounting and Financial Basis run on one system. Two system scenario: Accounts Receivable and Financial Basis 6.0 run on separate systems. Prerequisite for an one system scenario is that Accounts Receivable Accounting is running on mySAP ERP 2005 since Financial Basis 6.0 needs SAP Netweaver 2004s as basis. Notes: Please note that with mySAP ERP 2005 the Financial Basis is delivered in two ways: Financials Basis 6.0 is part of SAP ECC 6.0 (no add-on installation necessary in a one system deployment). Additionally, Financial Basis 6.0 is delivered as add-on for a two system deployment option. SAP Collections Management 6.0 is restricted to one Accounts Receivable system (FI-AR). It is not possible to connect several Accounts Receivable system. If you use SAP Dispute Management and/or SAP Credit Management in addition to SAP Collections Management, ensure that SAP Collections Management, SAP Dispute Management and SAP Credit Management are installed on the same system. Otherwise the integration between these components does not work.
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Deployment for SAP R/3 Enterprise 4.7

SAP R/3 Enterprise 4.7

SAP Collections Management 6.0* ALE SAP ECC 6.0

SAP Web AS 6.20 SAP Netweaver 2004s

Accounts Receivable System

Collections Management System

*SAP ECC 6.0 already comprises Financial Basis 6.0

SAP AG 2005

The deployment option for SAP R/3 Enterprise requires SAP ECC 6.0 including SAP Netweaver 2004s to set up SAP Collections Management due to the master data replication of customers: Customer master data has to be distributed from SAP R/3 Enterprise to SAP ECC 6.0 via ALE. In the Collections Management system, customer master data will be replicated into business partner data. This replication requires SAP ECC 6.0 and SAP Netweaver 2004s. With mySAP ERP 2005 SAP ECC 6.0 already comprises Finbasis 6.0. Thus, you only have to install SAP ECC 6.0. It is not necessary to install Financial Basis 6.0 as add-on.

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Deployment for mySAP ERP 2004

SAP ECC 5.0 ALE

SAP Collections Management 6.0*

SAP ECC 6.0 SAP Netweaver 04 SAP Netweaver 2004s

Accounts Receivable System

Collections Management System

*SAP ECC 6.0 already comprises Financial Basis 6.0

SAP AG 2005

This deployment option requires SAP ECC 6.0 including SAP Netweaver 2004s to set up SAP Collections Management due to the master data replication of customers: Customer master data has to be distributed from SAP ECC 5.0 to SAP ECC 6.0 via ALE. In the Collections Management system, customer master data will be replicated into business partner data. This replication requires SAP ECC 6.0 and SAP Netweaver 2004s. With mySAP ERP 2005 SAP ECC 6.0 already comprises Finbasis 6.0. Thus, you only have to install SAP ECC 6.0. It is not necessary to install Financial Basis 6.0 as add-on.

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Deployment for mySAP ERP 2005 (One System)

SAP ECC 6.0*

SAP Collections Management 6.0*

SAP Netweaver 2004s

*SAP ECC 6.0 already comprises Financial Basis 6.0

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In this scenario you only have to install SAP ECC 6.0 which already included Financial Basis 6.0.

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Deployment for mySAP ERP 2005 (Two Systems)

SAP ECC 6.0 ALE*

SAP Collections Management 6.0

SAP Netweaver 2004s

SAP Netweaver 2004s

Accounts Receivable System

Collections Management System

*XI can be used for master data distribution optionally

SAP AG 2005

This deployment option only requires SAP Netweaver 2004s for the installation of SAP Collections Management (Financial Basis 6.0) since the master data replication of customers takes already place in the Accounts Receivable system: Customer master data will be replicated into business partners in the Accounts Receivable system The business partner data will be distributed to the SAP Collections Management system via ALE or XI. The latter is recommended if SAP Credit Management runs on the same system as SAP Collections Management.

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Availability
SAP Collections Management 6.0 is part of the Ramp-Up for mySAP ERP 2005 In Ramp-Up since October 24, 2005

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Agenda
SAP Collections Management - Overview Roles and Processes Process Collection of Receivables Process Control Collections of Receivables Process Data Synchronization and Creation of Worklist Deployment Options and Availability Summary and Roadmap

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SAP Collections Management - Business Benefits

Safeguard liquidity
Increase on time payments Improve DSO Reduce write-offs

Increase collection specialist efficiency and decrease cost of customer centric receivables management
Automatic worklists containing prioritized customers Summarize all relevant information and necessary activities for collection of receivables in one application

Ensure execution of company specific collection strategies Element of holistic customer relationship management Decrease reliance on and risk of third party debt collectors

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Roadmap SAP Financial Supply Chain Management

SAP FSCM 2.0 mySAP ERP 2004 (incl. SAP FSCM 3.0)
Ramp-Up

mySAP ERP 2005 (incl. SAP FSCM 6.0)

Plammed

Q2/2004
Release to Customer

Q3/2005

Q3/2003

Focus: Biller Direct

Dispute Management integration, collection authorization

Focus: Biller Direct

Improved integration with Dispute Management, super user

Dispute Management
Automation & prioritization, workflow integration, correspondence

Collections Management
Automatic worklists, collection rules and strategies, resubmissions, customer contacts

Collections Management
Manual worklists, promises to pay, integration with Dispute Mgmt.

Credit Management
Credit Limit Check, Credit Analysis, Credit Eventing, Workflow

Credit Management
Enhanced reporting

In-House Cash
Prima Nota, Integration with Cash and Treasury & Risk Mgmt

Treasury & Risk Management

Debt Management, Hedge Management, enhanced reporting

Treasury & Risk Mgmt

New instruments for forex and derivatives, Hedge Accounting, enhancements in Market and Credit Risk Analyzer SAP AG 2005

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Copyright 2005 SAP AG. All Rights Reserved

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The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.

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