collections management based on sap for utilities – new

Collections Managementbased on SAP for Utilities –New FunctionsMonika Bloching, SAP AG

SAP AG 2006, Title of Presentation / Speaker Name / 2

Note that the new collections functionality presented in thefollowing slides is a preliminary version and not subject to yourlicense agreement or any other agreement with SAP. This documentcontains only intended strategies, developments, and functionalitiesof the SAP® product and is not intended to be binding upon SAP toany particular course of business, product strategy, and/ordevelopment. Please note that this document is subject to changeand may be changed by SAP at any time without notice.

SAP assumes no responsibility for errors or omissions in thisdocument


Topics

Additional Flexibility in Dunning

Responsible Agents / Teams

Workload Balancing

Worklist Management

Processing of Work Items

Promise-to-pay / Payment Arrangements

Collection History / Success

Analytics

Appendix: Using BRF


Collections Management - Overview

ExecuteCollectionStrategies

DetermineAgents/Teams

BalanceCapacity

Supported functions• Integration with

Business RulesFramework brings fullflexibility regardingactivity determination

Supported functions• Collections organiza-

tion can be set up inSAP OrganizationalManagement

• Tasks, rules andresponsibilities areused to determine theresponsible team oragent

Supported functions• Capacity for each

activity and teamand/or agent can beset up

• Available capacitiesare taken into accountin activity determina-tion

• Priority assignmentthrough BusinessRules Framework

ManageWork Lists

Supported functions• Release of work lists• Monitoring of

collections progress• (Re-)assignment of

work items• (Re-)prioritization of

work

Process WorkItems

Supported functions• Processing of work

items in theinteraction center

• Promise-to-pay• Collection fact sheet• Collection progress

Issue correspondenceEtc.

Execute Activities:

Measuring Collections Success


Parameters for Collection Decisions (current solution)

DunningProcedure A

Days in arrears>= 10 AND

last level = 0 ANDfrequency >= 7 daysAND amount >= 10





Amount> 10

Amount> 100

Amount> 500

Creditw.> 0

Creditw.> 25

Creditw.> x

Level 1No InterestCharges: 5 €

Level 3Interest: 4 %Charges: 5 €

Activities

Reminder call

Activities

Dunning noticeReminder call

Dunning A

ctivity Run

Dunning Proposal R

un

Integrated Score fromCredit Management


Dynamic Determination of Collection Activities using BRF*)

Collection Strategy A

Rule Set

Expressions:

Actions:

(Result of) PreviousCollection

Activity

Openamount

CollectionAmount

RiskClass

Age ofdebt

Etc.

Get Data

Formula

FunctionModule

Logicaloperators

Mathematicalfunctions

Date / timefunctions

Etc.

Function FKK_XXX

IF RISK-CLASS =„HIGH“ AND

COLLAMOUNT >…..

NEXTSTEP =SPECIAL_TREATMENT

Return Result

Return Score

Issue Message

Event

*) Business Rules Framework


CollectionsTeam 1Collections

Team 1

Collections Embedded in Organizational Structure

Multiple independent collectionsorganizations can be set up

Teams or individuals can bedetermined based on tasks andresponsibilities

Taking into account absence ofagents

Automatic determination andmanual intervention by collectionmanager

Allowing workload balancing

Collection CenterRegion West

Postion:Collection Manager

Sandy

Responsiblefor CollectionsIn Region West

CollectionsTeam 1

CollectionsTeam 2

Postion:Team Lead

John

Responsiblefor PrivateCustomers

Postion:Collection Agent

CathyPostion:Collection Agent

Fred

For customersrange A-K

Responsible

For bankruptcustomers

Responsible


Responsible Determination

Standard Tasks and Rules

Collection Center– Responsibility for example based on business partner country, type of

business partner

Collection Unit– Responsibility for example based on collection activity, type of business

partner, risk class, postal code

Collection Agent– Responsibility based for example on business partner ID, contract account,

contract, collection amount


Tasks of the Manager Transaction

Create new worklists

Release new worklists

Select worklists

Update attributes of a worklists

Select workitems

(Re-)assign workitems to an agent or to a unit

Unassign workitems

Cancel workitems

Reopen workitems


Created from To

Display Currency

Worklist ID End Date Closed


SAP

Net

Wea

ver/

XI

SAP ERP

Telephony DiallerEmail ServerFax Server

Interaction Center / WebClient

CollectionsWorklist Management

Multi-Channel Communications

Phon

e

Fax

Lette

r

E-m

ail

Archive

Worklist Management based on SAP NetWeaver

Multiple processingoptions…

Worklist can beprovided to agents/teams for manualprocessing

Worklists can besubmitted to externalsystems (such asdiallers) via SAPNetWeaver / XI11

11

11

22

22

22


Worklist Overview and Collector‘s Progress

UnholdHold DialHang Up EndTransfer Dial Pad Not ReadyReady Wrap Up

My Collection Work Lists

Worklist Details My Work Progress

Worklist Description

Creation Date

Ranking Rule

Text

Mandatory reminder calls week 01

02.01.2006

Max 255 Char.

Oldest open items first, independent of risk

| |

Worklist Progress

Mandatory reminder calls week 01 10.10.06 500 400 100 60 125.385,00 EUR 30 %

Warning List Januar 15.02.06 1000 1000 0 0 261.615,00 EUR 0 %

Worklist Overview Search Worklist Items

Total * 1500 1400 100 60 287.000,00 EUR 10 %

Description Due date Total entries Unassigned My items My open items Total amount Curr. % assign. to me

Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectionCollection WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter

UnholdHold DialHang Up EndTransfer Dial Pad Not ReadyReady Wrap UpAccept Reject

Fred Smart/New York City NY 10035

Customerin Collections Phone Outbound 0170 3699965Connected2:40 / 2:40 Phone 1

Interaction Center Lisa Miller

Assign next items automaticallyMy items

My progress today Worklist progress

# of items Percentage AmountStatus

Completed 40 40 % 7.200 EUR 29 %Resubm. 10 10 % 2.800 EUR 11 %

Perc. of Amt.

%

In process 50 50 % 15.000 EUR 60 %

Closed 0 0 % 0 EUR 0 %

New 0 0 % 0 EUR 0 %

0 %Cancelled 0 0 % 0 EUR

Total items 100 100 % 25.000 EUR 100

DRAFT!


Work Items in a Work List

UnholdHold DialHang Up EndTransfer Dial Pad Not ReadyReady Wrap Up

My Collection Work Lists

Worklist Details My Work Progress

Worklist Description

Creation Date

Ranking Rule

Text

Mandatory reminder calls week 01

02.01.2006

Max 255 Char.

Oldest open items first, independent of risk

| |

Worklist Progress

Mandatory reminder calls week 01 10.10.06 500 400 100 60 125.385,00 EUR 30 %

Warning List Januar 15.02.06 1000 1000 0 0 261.615,00 EUR 0 %

Worklist Overview Search Worklist Items

Total * 1500 1400 100 60 287.000,00 EUR 10 %

Description Due date Total entries Unassigned My items My open items Total amount Curr. % assign. to me

Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectionCollection WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter





Assign next items automaticallyMy items

My progress today Worklist progress

# of items Percentage AmountStatus

Completed 40 40 % 7.200 EUR 29 %Resubm. 10 10 % 2.800 EUR 11 %

Perc. of Amt.

%

In process 50 50 % 15.000 EUR 60 %

Closed 0 0 % 0 EUR 0 %

New 0 0 % 0 EUR 0 %

0 %Cancelled 0 0 % 0 EUR

Total items 100 100 % 25.000 EUR 100

DRAFT!


P2P Open

Open item

Promise-to-pay

EvaluationRun

P2PFulfilled P2P Broken

CorrespondenceP2P initiated

Correspondence Update Credit-worthiness

Execute custom-specific activity

CollectionActivity Run

Worklist entryIf P2P is broken theoriginal open itemswill be evaluated

again by the collectionactivity run

Promise-to-Pay Overview

Temporarily no money

P2P-Category

Reason Code No printingPrint ParametersPromise to Pay with items

Create Cancel

Calculate interest

Promise to pay

Select items for Promise to Pay

DRAFT!


Interaction Center Based UI for Collectors: Payment Promise


Payments

Other Clearing

Promised (partial) Payments/Payments |Original Items

PaymentsPromised (partial) payments

17.01.2006

Value Date

USD

Currency

0.00

OtherClearing

53.000000003600

PaymentAmountDocument

USD

USD

USD

Crcy

Visa,***3123, 12/2007

PaymentVia

53,001.01.2006

53,001.02.2006

53,001.12.2005

AmountPromiseDate

Delete Payment Data Change Payment Data

Back Save WithdrawSubstituteChange Status Change

General Data | Correspondences

Creation Date

Created by

146.00 USD

13.00 USD

0.00 USD

Total Item Amount

Total InterestAmount

Total Charge Amount

18.11.2006

03.02.2006Next check

Reason

53.00 USD

0.00 USD

Check of Fullfillment Rate

Total Promise to Pay Amount

Status/CurrentFulfillment rate

Category

159.00 USD

Not calculated

Still open 119.00 USD

Currentlydue 66.00 USD

Lisa Miller

3 part. payments



Monday, January 9th 2006 5:43 pm


Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectonCollecton WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter

DRAFT!


Processing Work Items

Additonal functions …

Collection fact sheet

Extended collections history

Action list to support collectorsAutomatic resubmission of workitemsLink to respective functions

Additional BI extractors


Collection Fact Sheet - Sample



Customer in Collections Phone Outbound 0170 3699965Connected2:40 / 2:40 Phone 1

Monday, January 9th 2006 5:43 pm


Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectonCollecton WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter

Fullfill-ment

brokenUSD900,00800,0010023456

Date whenbroken

paid

open

Status

USD

USD

Crcy

200,00

1200,00

Totalamount

0,00

900,00

Openamount

10020644

300,0001.11.200612344456

Nex dueamount

Next duedateDocument

0,00

0,00

0,00

0,00

0,00

Open Payments

USD

USD

USD

USD

USD

Currency

Agreement 2

Contract 1

Agreement 1

Fred Smart

Description

10,00300,00No contract20,00800,00510000016001001Contract

400,00

1.100,00

2.500,00

Open Amount

150,00

30,00

250,00

AmountDue

510000016002Business Agreement

510000016001Business Agreement

5100000160Account

NumberCategory

Collection Workitem | Collection Strategy | Additional Collection Information

More Details

Risk Class

Locked due to

Exposure

Standard Address

Duration/Start of Partnership

Age / Date of Birth

Additional Information | Credit Segment | DisputesPromise to Pay | Last Interactions | Collection History

Collection Step First (friendly) Reminder Call Reminder Call

01.04.2006

Category

Trigger amount

Remaining Amount

Released

EUR

EUR

1.000,00

1.000,00

Status/ Mandatory

Processing Deadline

yes Creation Date 29.03.2006

Mo. – Fr. 08:00 – 12:00

16.02.2006Last Coll. Contact

Work item update | Notes

Sarah Cash * (if not unique)

Central Collection Department

Save Cancel

Back 1 | 2 Forward

Number of Promises broken within last 12 months Go

Fred Smart

X

04.07.2006

100%

Score

Acc. with Special Attention

Limit

36 Years 31.07.1969

175

Risk of Fraud

Very high Risk

400,00250,00

01.01.19987 Years

USDUSD

New York City NY 10035

Collector /Unit

Collection Center

Reassignm. Reason

Resubmission Date

Contact person

Contact hours

Contact person for all master data groups

Account Overview | Period Balances Sheet | Account Balance | Document Display

Disp. Locks Inst.

DRAFT!


Extended Collections History

Description Currency Original Amount Still Open

Collection Run, 22.01.2007 EUR 29,50 29,50

Open Item 11310074/0001, due 20.12.2006 EUR 29,50 29,50

Collection Activity: Reminder Call

Reminder call, status: in process

Collection Run, 08.01.2007 EUR 59,60 29,50

Open Item 11310074/0001, due 20.12.2006 EUR 29,50 29,50

Open Item 11300342/0001, due 20.11.2006 EUR 30,10 30,10

Collection Activity: Reminder Letter

Reminder letter, status: printed

Incoming call, 11.01.2007

Promise-to-pay, status: broken EUR 59,60 29,50

Payment 8834590, 15.01.2007 EUR 30,10

Hierarchical display of collections details


Appendix:

Using BRF


ApplicationAn application is the software component that uses the BRF.

Application ClassAn application class is the highest level of organization in BRF.All BRF customizing components must belong to an application class.

RuleA rule consists of exactly one expression whose functional result can beeither true or false, and of at least one action to be performed if theexpression is true.

ExpressionOn the basis of a freely definable (calculation) rule, data of anapplication object or data of objects related to the application object (orindeed any data at all) is processed, delivering a result of any (primitive)type.

Overview: Terminology I


Overview: Terminology II

ActionAny manipulation of any data sets that makes sense from a businesspoint of view and that can be performed technically.Actions can be dependent on a expression, in which case it is part of arule, or can be specified to execute unconditionally within an event.An action may or may be part of a rule, but must be specified within anevent in order to be executed.

EventAn event triggers rule processing. More precisely: rules are (usually)assigned to an event.Events are typically triggered at suitable points in the application. Atthese events, rules that have been assigned through configuration arethen evaluated.Unconditional actions can also be specified in an event.


Overview – Rules Definition

Dat

a R

eque

stAll data available in the system can be used toform the basis for the determination of theappropriate collection step:

CreditworthinessDunning BalanceHighest Amount of Items within Dunning HistoryLatest Due DatePostal CodeIndustry CodeNumber of Broken Promise-to-PayMinimum Days in Arrears…

Decision TreeThe expression type of thedecision tree is used for thederivation of the collectionstep and the evaluationnumberAll data requested can beused in the other expressiontypes (Ranges, Formulas,Truth Table etc.) to define aconditional step within thedecision tree. The result ofeach step is either false ortrueAs target you define within thedecision tree the collectionstep

Col

lect

ion

Step

Collection steps are defined as constants:Reminder CallEnforcement CallEnforcement Workitem…


Data Request - Examples

Formula SY-DAT minus LATEST DUE DATE from Items Dunning History ($FKKMAZE-FAEDN withaggregation MIN)

Minimum Days inArrears

PPSTA = NOTFULFILLED

COUNTPPSTADFKKPPNumber of BrokenPromise-to-Pay

IND_SECTORBUT000Industry Code

POST_CODE1FKK_GPSHADPostal Code

MAXMBETM$FKKMAZEHighest Amount ofItems within DunningHistory

MSALM$FKKMAKODunning Balance

BONIT$FKKMAKOCreditworthiness

Where-Condition

AggregationFieldTableAttribute


Configuring the decision tree (1/3)



FeaturesThe maintenance type determines iftargets can be maintained only on theend node or on any node. For thedetermination of the collection step atarget shall only be maintained on theend node of a branch.

When setting up the decision tree youcan create new nodes using thefollowing options:• Create Node as First Subnode

• Create Node as Last Subnode

• Create Node at Same Level, After

• Create Node at Same Level, In Front

• Delete Node, including Subnodes



FeaturesConditions are Boolean Expressions.From the decision tree you can:• Select Existing Condition

• Create New Condition

• Remove Condition

• Navigate to Condition

Targets represent the collection steps.From the decision tree you can:• Select Target of Same Type

• Select Target of Different Type

• Remove Target

• Create New Target

• Navigate to Target


Configuring the action for the collection step & eval. no.

FeaturesIn this action you can assign theexpression for deriving thecollection step

FeaturesYou can use the existingexpression types to define a pre-defined valuation number forprioritizing your worklists.Additionally you can enhance thedunning history header table tocover additional scores such aspayment history, invoice historyetc. which can be used as a valuevector.


Create and Assign Event per Collection Strategy

FeaturesWithin the event the individualrules are maintained.

If you need additional data whichis not part of the context you caninitialize additionl data for thecontext.

Within the event you have toassign the action for determiningthe collection step and the score.

FeaturesApplication class and event then need to beassigned to the collection strategy.


Copyright 2006 SAP AG. All Rights Reserved

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 bechanged without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Outlook, and PowerPoint 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, and Informix are trademarks or registered trademarks of IBM Corporation.

Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C 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.

MaxDB is a trademark of MySQL AB, Sweden.

SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registeredtrademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies.Data contained in this document serves informational purposes only. National product specifications may vary.

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 priorwritten 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 thisdocument 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 itemscontained 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. Thislimitation 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 inthese materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.

collections management based on sap for utilities – new

Documents