implementing fscm

8/15/2019 Implementing FSCM

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Implementing FSCM:Tips, Tricks, and

Lessons LearnedJeff Hirsch

SAP America

What We’ll Cover …

Introduction

Dispute Management

Credit Management

Collections Management

Wrap-up

“FSCM is Like a Box of Chocolates …

… you never know what you’regonna get.”

That is, until you dig downto uncover hidden secrets.

In This Session … (Topics)

Dispute Management

Why you should create most dispute cases automatically

Avoid problems when closing cases automatically

Some things you may not know about correspondence Use SAP NetWeaver® Business Intelligence (BI) reports to manage

the dispute resolution process

Credit Management

Best practices for calculating credit scores and credit l imits

Integrate businesses with different credit polic ies

Manage large customers with credit hierarchies

Collection Management Integrate Collection and Credit Management through business

partners

How collectors can use Dispute Management to improve their

effectiveness

Introduction

Dispute Management

Credit Management

Wrap-up

Best Practices for Creating Dispute Cases

Create dispute cases automatically for deductions

Deductions created in lockbox processing

Deductions created by cash applier UNLESS cash applier canadd useful information

Dispute cases are created and immediately routed toCoordinator/Processor for action

Ensures that no deduction is overlooked

Build in a minimum threshold – only deductions over $50,for example

Report for Automatic Creation of Dispute Cases

SAP Note 925827 enables case creation f rom

ANY residual item

SAP Note 925827 enables case creation from

ANY residual item

TransactionFDM_AUTO_CREATE

Avoid Problems in Closing Cases

The case can be closed automatically when the disputed item isfully cleared

This configuration will change the status to 30 “ Closed”

The Secret is in the Status Profile

The Status Profile identifies the various status values that can beused, as well as the rules for changing status

The Low and High columns define the allowable range

e.g., to change the status to 50 (Voided), the status must be between

10 (New) and 20 (Being Processed)

Forget

The Problem …

GOTCHA!

An incoming payment tries to clear the disputed item when thecase status is 10 (New)

The Status Profile will not allow the status to be changed from 10to 30 (only status 20 is allowed)

Result: The item cannot be cleared because the case status

cannot be closed

The Solution …

Allow the closed status to be set from ANY earlier status value

Enhancing Correspondence

Did you know …

You can add additional recipients?

You can add attachments?

You can control which forms are proposed?

Enhancing Correspondence (cont.)

Apply SAP Note 888620

Enables you to add attachments before correspondence is sent

Configuration:

For each form type, define the “ Processing Time” as “ Processingusing selection report”

Setup:

Schedule program RSPPFPROCESS (transaction SPPFP) to run inthe evening – this program sends the correspondence that wascreated earlier

Configure Processing Time

Manually-Created Correspondence

Additional Recipient and Attachment Are Added

Additional

recipient

added Attachment

uploaded

from PC

ActionDetails

button

Letter and Attachment as Received

Controlling Choice of Manual Correspondence

Requirement:

You want the choice of correspondence to be determined by specificattributes in the case

For example: You want the Claim Denial letter to be proposed only when the case

status is set to “ To Be Collected” and the disputed amount is greaterthan $100

Configuration: Define a “ Schedule Condition” to test the case attribute(s)

Assign the Schedule Condition to the specific correspondence typesand methods

Example of a Schedule Condition

Example:

User Status = 25 (To Be Collected) AND

Disputed Amount > 100 AND

Currency = USD

Assign the Condition

Status is “To Be Collected”

Use the BI Dispute Management Reports

Dispute Management includes standard BI content that just needsto be activated

The standard content puts the “Management” in “ Dispute

Management” Evaluate the process of resolving disputes

Identify possible bottlenecks in the process

Evaluate and adjust workloads

Quantify the root causes of disputes Identify customers abusing the deduction

Enhance the reporting ODS with new case attributes as required

Enhance Reporting by Adding Tracking Attributes

Evaluate your dispute resolution process.

Do you have multiple phases in the process?

For example:

A central person determines who owns each dispute and assigns thecoordinator/processor

Invalid deductions are charged back to the customer, but there may be asignificant time before repayment

Enhance the case attributes by adding newtracking fields and BAdI code to fill them in.

For example:

Date Referred when Coordinator has changed

Date of Chargeback when case status is changed to Chargeback

Time Grid: Drill-Down to Customer

Example: Values and Life

Example: Time-Based Sorting

Introduction

Dispute Management

Credit Management

Wrap-up

R/3 Credit Management vs. SAP Credit Management

Any XML-Based Credit

Information Service

Only Through Partner

Products

External Credit

Information (e.g., D&B)

Credit Rules EngineNot AvailableCustomerScoring/Rating

Distributed System-Landscape (Multiple FI,SD, and CRM Systems)

Only for Simple

System-Landscape

(1xFI, 1xSD)

Monitor CreditExposure

FI-AR, FI-CA, OthersOnly FI-ARFI Data

SAP Business Partner FI-AR AccountMaster Data

SAP CreditManagement

R/3 CreditManagement

R/3 C dit M t SAP C dit

R/3 Credit Management vs. SAP CreditManagement (cont.)

SAP NetWeaverXI Server

Not AvailableConnectivity forNon-SAP Systems

Credit Manager Portal(incl. Fact Sheet andSAP BW Content)

SAP Analytics (6.0)

Customer Fact Sheet Analysis

Create Workflow forany Credit Event

Only in SDWorkflow

Credit Rules EngineNot AvailableRule-Based Definitionof Credit Limits

SAP CreditManagement

R/3 CreditManagement

FI-AR Account vs. SAP Business Partner

FI-AR Account

Limited data – mostly to supportthe credit check

Single role (customer)

Fixed design

SAP Business Partner

Central repository

Can be shared with other

applications using SAPBusiness Partner

Extensible design

A Multi-Division Business with Different

A Multi-Division Business with DifferentCredit Policies

Example:

Acme Chemical Company has two divisions:

Petrochemicals – high-volume, low-margin

Credit Policy: Very tight monitoring Fine Specialty Chemicals – low-volume, high-margin

Credit Policy: Generous

Solution:

Define each division as a Credit Segment

Use different formulas to calculate credit limit for eachCredit Segment

Example: Evaluating a Common Customer

Credit Segment

Petrochemicals

Credit Segment

Fine Specialty Chemicals

Customer:Whizzo Manufacturing

Credit Score = 84

High-MarginFormula

Limit = $800,000

Low-MarginFormula

Limit = $150,000

E t l C dit Hi h D fi d b R l ti hi

External Credit Hierarchy Defined by Relationships

Customer 4711Customer 4711Segment 0000Segment 0000

Exposure: $1,000,000Exposure: $1,000,000

Total Exposure: $700,000

Total Exposure: $3,100,000

Exposure: $1,500,000Exposure: $1,500,000

Exposure $700,000Exposure $700,000

Total Exposure: $2,100,000Is higher credit

account of …

Is higher creditaccount of …

Is higher credit account of …

Multi Level Credit Checking

Credit ManagementERP Customer

Multi-Level Credit Checking

Customer Electronics Inc.

Business Partner Electronics Inc.

Central

Customer Electronics Inc.West

Central

Business Partner Electronics Inc.West

A/R SummaryCredit Exposure

Business Partner Electronics Inc.Credit Account

CreditLimit

PaymentBehavior

A/R SummaryCredit Exposure

Credit Master Data

Credit Management

Credit Master Data

Central

Business Partner Electronics Inc.West

Calculate ScoreDetermine Risk

CalculateCredit Limit

External Credit Info

A/R Summary

C o p y S c o r e t o

L o w e r L e v e l B

CalculateCredit Limit

S u m m a r i z e C r e d i t L i m

i t s t o H i g h - L e v e l B P

What We’ll Cover

Introduction

Dispute Management

Credit Management

Wrap-up

Collections Management Master Data

The Collector’s Worklist uses the Collection Business Partnermaster data

A new Master Data Synchronization function in ECC 6.0 createsthe Collection Business Partner from the ECC A/RCustomer Master

Master Data Synchronization

Collections Management Accounts Receivable

Master Data Synchronization

Customer group KUNA

Role “ Gen. BP (000000)”Role “ CVI: FI Customer

(FLCU00)”

• Title and names• Search terms• Standard address• Bank details• Company code-specific data• …

Leading customer master datafor Collections Management

Customer/Vendor

Integration

Customers with Multiple A/R Accounts

Collections Management Accounts Receivable

Customers with Multiple A/R Accounts

Central

Credit Management

Manage Credit at Credit Account Level

Central

Credit Management

• Credit Score• Risk Class• Credit Limit• Credit Check

Risk Class(From Credit Account)

Collection

Strategy

Missing Documentation

Frequent reasons given to collectors for non-payment ofan invoice:

“ I never received the invoice”

“ I need a copy of a Proof of Delivery”

How does the collector respond?

After completing the call, the collector:

Obtains the missing documentation

Prints it out

Stands in line at the fax machine to send it to the customer

A Better Solution

Use Dispute Management to create a case

Select reason:

Invoice copy needed

Proof of Delivery needed

Assign the collector as the Coordinator and Processor

At end of day, the collector processes worklist

Use the Correspondence function to attach copy of missingdocumentation and email or fax it to customer

In addit ion to improved efficiency, you get statist ics that identify thefrequency of missing information by customer, etc.

Introduction

Dispute Management

Credit Management

Wrap-up

Resources

More information is available from the SAP Help Portal:http://help.sap.com/

Look under mySAP ERP> SAP ERP Central Component> Financials>SAP Financial Supply Chain Management

Also look at SAP Notes in the Service Marketplace Application Area FIN-FSCM

7 Key Points to Take Home

SAP Dispute Management

Consider creating cases automatically

Know the options for controlling external correspondence

Use SAP NetWeaver BI reports to manage the resolution process

SAP Credit Management

Use internal hierarchies to implement different credit pol icies

Use external hierarchies to consolidate large customers

SAP Collection Management

Use master data synchronization to enhance integration withSAP Credit Management

Let collectors use Dispute Management to improve their efficiency

Your Turn!

How to contact me:Jeff Hirsch

jeff.hirsch@sap.com

implementing fscm

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