fscm-ar collections management ppt 02 ecc6 v2.0

A guide to Dispute ManagementRoles and Processes
Upon completion of this module, you should be able to:
Define Collections Management
Describe Roles and Processes in collections management
Describe various features in collection management
Elaborate important concepts
Explain Process Receivables
Collections Management supports:
From a risk management perspective
From a customer relationship perspective
Proactive collection of receivables
Process optimization and automation for high volumes of open items
Workforce Management
Increasingly bad payment behavior
No reaction on automatic correspondence (i.e., dunning)
Financial situation influences customer relationship
Today, Collections Management is mostly a time-consuming, costly, and cumbersome process
Select and prioritize customers to be collected from
Search for account information
Reduce DSO
Avoid write-offs
Improve Customer Relationship Management
Retain valuable customers and convert difficult customers by providing the right interaction in delicate scenarios
Provide a complete picture of customer history
Increase customer satisfaction
SAP Collections Management provides collection strategies that make it possible 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.
SAP Collections Management offers special collection procedures to document and respond to customer contacts.
Collection managers will find a variety of options to control the collection of receivables.
IBM Global Business Services
© Copyright IBM Corporation 2006
1. Collection Specialist – Who is responsible for collection of receivables
2. Collection Supervisor – Who is responsible for controlling the collection of receivables.
Collection Specialist will get the worklist for his customers based on which he will contact the customers and process the receivables.
Collection Supervisor will create strategies, generate worklist for Collection Specialist and monitor the activities of Collection Specialist
FSCM Collections Management Path
SAP Easy Access transactions
Business Partner
Collection Profile
Collection Segment
Collection Group
Collection Strategy
Collection Worklist
BP is automatically created when Customer is created.
Customer in AR = BP in FSCM
Business Partner in FSCM Collection Management will have a role Collection Management wherein Collection Profile is assigned.
Collection Segment, Collection Group & Collection Specialist will be assigned to the profile.
T. Code UDM_BP
Collection Mgt Role
Groups Company Code.
Transactions of Business Partner of these Company Code can be considered together.
Collection Group – T. Code - UDM_Group
Has the group of Collection Specialists who are to contact customers in Collection Management.
Has Collection Strategy for each group.
Collection strategy comprise of company-specific rules for collecting receivables
Collection strategies have the following purposes:
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)
Collection Rules assigned
Valuation Points assigned
Overdue Period specified
Contains the list of customers whom Collection Specialist should contact.
Customers are valuated & prioritized based on Collection Strategy.
Features in Collection Worklist
Summarized information per customer regarding:
Customer Account in Accounts Receivable
Past collection activities
Credit Management data
Aging of the customer’s 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
My Worklist – Summarized view
Detailed View
Detailed view in Worklist
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
Promise to Pay
Promise to pay is created when Customer agrees to pay an invoice at a specified date.
Promise to pay can be valuated to determine the status.
If the promise to pay is paid, then the status will be Kept.
If the promise to pay is not paid, then the status will be Broken.
If the promise to pay is partly paid, then the status will be Partially Kept.
Resubmission
Resubmission is created when Customer informs to contact at a specified date.
The Customer will not appear in Collection Specialist worklist till the resubmission date.
Process: Collection of Receivables
Transfer Data from AR to FSCM
Generate Worklist
Periodic activities in collection management
There are 3 steps which needs to be performed so that Worklist gets created for the Collection Specialist:-
1. Periodic Transfer of data from AR to Collection Management through Batch Jobs. T. Code FDM_COLL_SEND01.
2. Evaluation of Promise to Pay through Batch Jobs. T. Code FDM_JUDGE.
3. Creation of Worklist through Batch Jobs. T. Code UDM_GENWL.
Periodic Data Transfer
T. Code :- FDM_COLL_SEND01
This is required to transfer initial data, Periodic data or according to selection.
Valuating Promise to Pay
If the customer has paid the promised amount within the deadline agreed, the system valuates the promise to pay as Kept.
If the customer has only paid part of the amount promised within the deadline agreed, the system valuates the promise to pay as partially kept.
If the customer has not paid the promised amount within the deadline agreed, the system valuates the promise to pay as Broken.
T. Code FDM_JUDGE
Creation of Worklist
T. Code :- UDM_GENWL
This transaction will create the worklist so that it appear in the Myworklist of Collection Specialist.
Process: Collection of Receivables
Collection Specialist will get daily worklist for his BP (customers).
Worklist will contain details of amount outstanding, amount to be collected, no. of days due etc.
It will also provide in details for each customer, list of open invoices, dispute cases, promise to pay, resubmissions, payment history.
From the worklist, Collection Specialist can create Promise to Pay, Customer Contact, Dispute Case, Resubmissions.
Once Collection Specialist has performed an action, the customer will no longer appear in the open worklist of Collection specialist. It will be moved to Closed Worklist.
Prerequisite – Customers needs to be replicated as BP, Data Transfer from AR to Collection Management is done & Worklist is generated.
Activities in customer contact
The collection specialist can document his or her collection activities by:
Creating promises to pay
Documenting the customer contact itself
The starting point for most collection activities is the overview of open invoices
Create Promise to Pay from Process Receivables
Select the invoices for which the customer promises to pay and click Promise to Pay
Save. You will notice that the state of these invoices is changed.
Create Promise to Pay from Process Receivables
Post Incoming Payment – For Promise to Pay
An incoming payment is posted for the invoice for which the customer gave the promise to pay.
Promise to pay details before posting an incoming payment
Payment document posted for these promise to pay items
Post Incoming Payment – For Promise to Pay
Now in My worklist of Collection Specialist, there are no promise to pay items for Customer Ricky.
If the customer has paid the promised amount within the deadline agreed, the system valuates the promise to pay as Kept.
If the customer has only paid part of the amount promised within the deadline agreed, the system valuates the promise to pay as partially kept.
If the customer has not paid the promised amount within the deadline agreed, the system valuates the promise to pay as Broken.
Program name for Valuating Promise to Pay:FDM_P2P_JUDGE
Tcode : FDM_JUDGE
Output
Here the customer has paid the Promise to Pay for 4 invoices for Rs. 6100 as mentioned during post incoming payment and hence the status for these had been valuated as Kept.
For Invoice 1800000014, the Promise to Pay had been broken and hence it is valuated as Broken Promise to Pay.
In T. Code UDM_SPECIALIST, you can see the same:-
Since the Promised date was 05.08.2007 and the valuation was done on 08.08.2007, the status of this Promise to Pay is Broken (RED).
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 (use change option)
Renewed promises get a 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
Dispute Cases from Collection Management
Collection specialist can create a 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 for 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; customers with dispute cases of this status will appear on the worklist
Status of dispute case is displayed per invoice
Create Dispute Case from Process Receivables
Select an invoice for which Dispute case needs to be created and click on Create Dispute Case.
Create Customer Contact from Process Receivables
Click Customer Contact after selecting an item or without selecting an item
Create Customer Contact from Process Receivables
Save. After this, there will no longer be any Worklist after this for BP Ricky.
Create Resubmission from Process Receivables
In T. Code UDM_SPECIALIST, double click the open items of a business partner.
In the following screen, go to Tab Resubmissions and Click Create
You will get the following screen.
Fill in the details and save
You will get the information that Resubmission is created.
Click back button. The system will prompt to create customer contact. It will already have the text which was maintained in resubmission in the contact note.
Fill in the details in customer contact and save.
Completed Items
The items which were open and now addressed by Collection Specialist will be in completed item status and it will not appear in My Worklist as Open Items.
You can get the Completed items by clicking this icon.
Collections Management definition
Roles and Processes for Collection Specialist and Collection Supervisor
Features of Collections Management

fscm-ar collections management ppt 02 ecc6 v2.0

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