CR and Collect PDF

SAP Credit and Collection
Management
Vidar Greve Johannesson
vgj@scensum.com
Agenda
1.SAP Financial Supply Management Business Issues and value

proposition
2.SAP Credit Management
3.SAP Collection Management
4.Summary
2011 SAP AG. All rights reserved. www.scensum.com. 2

Does this Sound Familiar?
Copyright 2002 by Randy Glasbergen

www.glasbergen.com

Cash Flow Cycle
Sale + Actual
Order Delivery +
Delivery + payment
placed invoice
Invoice date
Days In Inventory Days Sales Outstanding
time
Days In
Payables Days In Receivables
(average time to (average customer payment time)
payment of supplier)
Cash
Expected
payment
payment date
for inventory
Cash Flow Cycle

Free Up Cash with SAP FSCM
Companies have big potential to free up working
Painpoints in Order to Cash Cycle
capital by applying best practices
321 91
bn $ bn $ Cash application 18 %
Accessing information 18 %
71
bn $
Payment reconciliation 26 %
49
bn $
110 Managing customer behavior 28 %
bn $
Invoice presentment 29 %
Current Payables Receivables Inventory Best Practice Discrepancy resolution 47 %

Working Working
Capital Cash NPV released from best practice: 211 bn USD Capital
Source: Paystream Advisors, 2007
Source: McKinsey (sample of 24 corporate clients) (percentage of highest pain scores)
With SAP Financial Supply Chain Management customers were able to

Reduce the number of bad debt using SAP Credit Management
Reduce efforts and costs for invoicing using SAP Biller Direct
Reduce DSO through improved discrepancy resolution with SAP Dispute Management and
SAP Collections Management

Typical Barriers of the Order-to-Cash Cycle
Independent functions Fragmented and inefficient
No coordination in collections/ Paper-based and labor-

dispute resolution intensive
Inconsistent credit Lack of standardization

policies across divisions High Cost of
Finance Operations
Poor insight into High Bad Debt Risk Fragmented stand-alone

customer Credit risk systems
High DSOs
No insight into process No workflow or data
bottle necks management
Lack control over processes, No integration with GL or

workflow or prioritization AR systems

Overcome Your Barriers by Optimizing the
Order-to-Cash Cycle with SAP
Barriers Finance Strategies SAP Solutions
Monitor performance of financial processes SAP CPM

Optimizing the Order-to-Cash Cycle
Insight & Implement financial controls and fraud

SAP GRC
Control detection mechanism
SAP Credit Management
Control global credit risk
Establish greater cross-functional coordination SAP ERP Financials

Define global customer credit policies
Organization SAP Credit Management
Establish clear lines of ownership and
SAP Dispute Management
escalation policies
Organize unstructured data and collaborate

via workflows SAP Collections & Dispute Mgmt
Processes Streamline labor-intensive processes via SAP Biller Direct
standardization and automation SAP Accounts Receivable
Straight-through payment processing
Utilize open standards to connect financial Enterprise Service Bundles
systems with customers, suppliers and banks SAP Biller Direct
IT Systems Integrate collections / dispute systems with SAP ERP Financials
accounting and AR systems
SAP NetWeaver/SWIFT integration

Agenda
1.SAP Financial Supply Management - Introduction

4.Summary

Agenda
1.SAP Credit Management Introduction

2.User Interface of the Credit Manager
3.Master Data
4.Credit Rules Engine
5.Reporting & Mass Change

Financial Supply Chain Management with SAP
SAP Credit SAP Biller Direct

(Electronic Bill Present- SAP Dispute SAP Collections
Management ment and Payment) Management Management
Check Finance
Issue Forecast Resolve Collect Settle
Credit Working Reconcile
Invoice Cash Disputes Cash & Pay
Worthiness Capital
Order-to-Cash

Credit Management Business Facts
Year 2007: approximately 129,822 corporate bankruptcies

in Western Europe*
Average delay in payments for Western Europe between

8 days and 21 days*
Ineffective credit management in distributed sales

systems
Information needed for credit decisions is spread out all

over the company
No credit history available when doing business with

new customers
Communication between sales, credit, and finance

departments is very time-consuming
A customer is treated differently in different business units

within the same company
2011 SAP AG. All rights reserved. * Source: Creditreform

www.scensum.com. 12
SAP Credit Management Focus
System to implement a company wide credit policy

Central credit management in a distributed system landscape
Monitor a customers credit exposure in one central system
Customer scoring using own scoring rules creating new
reports and queries
Automatically calculate and assign a customer-specific
credit limit
Interface to external credit agencies
Web-based access to credit information for sales people
Distribute customer master data via Master Data Management
(MDM)
Strategic credit analysis with predefined reports
Credit Manager Portal to speed up credit decisions
Improves productivity by automating credit decision process
and focusing on the processing of exceptions

How to Manage the Credit Risk ?
Collect internal and external information about the

customer
Evaluate and classify the customer according to
this information
Assign a credit limit according to the risk assessment of
the customer
Collect information about the credit exposure of business
transactions with this customer
Ongoing monitoring of the credit limit usage
Hedge business transactions for high risk customers
Monitor early warning signs
Plan sales and marketing activities for low risk customers
Compare credit portfolio with companies strategic goals
Share credit information with sales
Default Probability Sets Risk Hedging
Default Probability
30 %
Cash on delivery
Letter of credit
20 %
Advance Payment
Risk Class III

Check by ext.
Credit Agency
10 %
Risk Class II
Invoice
Risk Class I = Customer
Very Good Very Bad Score

Treatment of Clients Depending on Sales and Default Risk
Sales with client
High
Sales
Possible Actions: Possible Actions:
Lower sales prices Reduce business with
this customer
Reduce use of hedging
Change dunning procedure
instruments
Permanent credit

risk monitoring
Customer A Customer B
Best Case Client: Possible Actions:

Customer C
Intensify Customer Increase sales prices
Relationship Increase use of hedging
instruments

Low Customer D
Sales
High Risk Low Risk Risk of

default
Functional Overview
Credit Limit Management

Implement a company wide credit policy
Manage a customer credit profile
Central credit management in a distributed system landscape
Credit Case
Credit case for structured processing of credit limit applications
Track status and result of credit limit applications
Credit Rules Engine

Categorize customers by scoring rules
Automatically calculate and assign a customer-specific credit limit
Credit check rules
Model and implement own customer credit score cards
Credit Information
Interface to external credit agencies
Input parameters for scoring rules
BW Content
Credit Manager Portal

Role-based access to credit management information and analysis

Credit Limit Management
Functions
Alert Alert
Manages the credit profile of a customer
Monitor credit exposure / limit in a Credit
Limit
central system
Web-Based access to customers
credit profile Credit
Exposure
Rules Engine for implementing own scoring January March
February April
and limit rules
Scalable platform to use in B2B and
B2C Scenarios
Score customers and vendors
Business Benefit
Imlement company wide credit policy
Early identification of default risk
Reduce processing costs by automating credit decisions

Credit Case
Functions
Virtual Folder to track credit applications
A credit case contains
Major customer master data & credit profile
Status
Organizational data
Documents
Orders
Notes
Inbox
A credit case can be sent from user to user
It is linked to the customer credit data
SAP Workflow Integration
Business Benefit
Sales people can enter an application for credit limit
change
Track status of the application
2011 SAP AG. All rights reserved. Inform sales when decision is made www.scensum.com. 19
Create Limit Application (Example)
Customer exceeds
credit limit frequently
Sales assistant enters credit Send credit case to

limit application (credit case) financial analyst
Assign credit manager Send workflow item to

manually / automatically financial analyst
Send workflow item to Send back credit case

credit manager with financial data
Need more
information? yes
no
Approve / reject
credit limit application
Change limit in Close credit Send notification to

master data (manually) limit application sales assistant (workflow)
Creating Credit Limit Request
Select Business Partner
Define details
Add note
Add Attachments
Review and save
Confirmation

Integration
Functions
Central credit management in a heterogeneous
system landscape
Import exposure information from various systems
Perform credit limit check in real-time
Integrate services from external credit agencies into
the credit decision process
Distribution of customer master data by MDM
Business Benefits
Minimal effort for connecting SAP and non-SAP Systems and low TCO due to XI
Seamless integration of external services increases user productivity
Real-time credit limit check guarantees consistent credit decisions
Provide customer credit profile to other applications (e.g. CRM)

Credit Manager Portal
Functions
Role based application providing analytical
tools
needed for quick credit decisions
Single point of access for all relevant
credit information
Work lists inform the user about to-dos
Platform to make credit information available
for sales people
Business Benefits
Improves user efficiency due to consolidation
of various information sources
Improves communication between sales,
credit
and accounting department
Sales people can access credit information
from customer site
Credit Analysis
Functions
Company-wide monitoring of credit risk
Analysis of customer payment and order
behavior
Alert on high risk customers
Risk structure analysis of the customer base
by country / business unit / customer group
Business Benefits
Proactive credit management
Identification of risks before customer
gets insolvent
Hedging of high risk customers reduces
unexpected losses
Aim marketing and sales activities to low-
risk customers
Drive price policy by a customer risk
category
Integration with External Credit Agencies
SAP
Enterprise Portal
Credit
Manager Portal
Real Time
SAP
Credit
Management
D&B
Creditreform
XML Real Time
External Credit
Information System
Original XML Document is stored in the

Credit-
SCHUFA
reform
document management system that is
D+B .......
used by the SAP Business Partner
Comparison R/3 Credit Management
with SAP Credit Management
R/3 Credit Management SAP Credit Management
Master Data FI-AR Account SAP Business Partner
FI Data SAP Business Partner FI-AR, FI-CA, others
Monitor Credit Exposure Only for simple system- Distributed system-landscape
landscape (1xFI, 1xSD) (multiple FI, SD and CRM
systems)
Customer Scoring/Rating Not available Credit Rules Engine
External Credit Information Only through partner products any XML based credit
(e.g. D&B) information service
Rule based definition of Not available Credit Rules Engine
credit limits
Workflow Only in SD Create Workflow for any
Credit Event
Analysis Customer fact sheet Credit Manager Portal (incl.
BW Content) and OLTP
reporting
Connectivity for non Not available PI Server
SAP-systems
Agenda

3.Master Data

Work Center for SAP Credit Management Modeling the
Role of the Credit Manager
Each Work Center
represents a certain
area of activity:
Worklist
Processing of credit
limit requests
Processing of blocked
sales orders
Processing of blocked
customers
Each work center provides access to a range of work lists, pre-filled reports and
services appropriate to the tasks performed by the user.
Worklist
User receives
Detailed Navigation = notifications on
View Switch credit events
(e.g. changes in
risk class, score etc.)
Links launch
applications in
Activity Window
(user can also
start applications
related to master
data and mass
User can view details
data processing here)
and access directly the
dialogue processing
of business partner
maintenance
Credit Limit Requests Overview
Detailed Navigation = Pre-delivered
View Switch default queries with
customized values
Links launch
applications in
Activity Window
User can access
directly the dialogue
processing of the
respective request.

Blocked Customers
Detailed Navigation = Pre-delivered
View Switch default queries with
customized values
Links launch Action button leads

applications in the user directly to
Activity Window the exact location of
the block information
in the business
partner master data

Agenda

3.Master Data
5.Integration with External Information Providers

Master Data in SAP Credit Management
Credit data is a component of SAP Credit Management

and is stored in SAP Business Partner. It consists of the
credit profile data and credit segment data.
The credit profile is used for the central storage of

customer data relevant for risk assessment (scoring, risk
class, external rating, credit check rule).
Credit segments can map various areas of a company

(such as sales area, countries, company codes). They
are used for area-specific administration of credit limits
(and their utilization) and to store information on the
payment behavior of the customer. The corresponding
credit segment data is used for credit checking when the
order is created or on delivery within a company area.
By using relationships you have the possibility of

creating customer hierarchy.

Business Partner in SAP Credit Management
Scoring Rule:
Rules that define how
a customer is scored
(e.g. industry, D&B,
legal form, country)
External Rating from D&B

Credit Check Rule:
Rules that define how a
customer is credit checked
(e.g. static / dynamic check,
oldest open item )

Relationship
Higher-level credit management account of
Business Partner 4711 Total Credit Exposure:

Segment 0000
Credit Exp.: 1.000.000 3.100.000
Is the higher
level credit
management
account of Business Partner 4712 Total Credit Exposure:
Segment 0000
Credit Exp.: 1.500.000 2.100.000
Is the higher
level credit
management
account of Business Partner 4713 Total Credit Exposure:
Segment 0000
Credit Exp.: 700.000 700.000

Agenda

3.Master Data

Credit Rules Engine
Create scoring formula and credit limit formula by
using the formula editor. Parameters (for example
business partner data) and functions are used as input
parameter.
One scoring formula and several credit limit formulas (for
each credit segment) are assigned to the rule for scoring
and credit limit calculation, which is assigned to each
customer in the credit profile. The risk class is determined
directly from the score.
In customizing, specific score ranges which do not
overlap are assigned to each risk class. For the check
rule, the system determines the steps which are taken to
check the creditworthiness of a customer when a sales
order is created. This may include the static check of the
credit limit or the check of the highest dunning level.
Customer-specific process chains in SAP Credit
Management can be defined through events which
trigger follow-up actions
Calculate Internal Credit Scoring
(Existing Customer)
Customer Sales
Birth Date Profession Dunning Payments
Address Volume
RegionAge GroupProfession Score Sales Volume Score SV

... 0 100 0
ATL <20 Student 17 Credit Information 101 300 5
NYC 20-30 Student 18 301 1000 10
Score C: 17 Score D: 3
... ...
Dunning Score DU
Credit Rules Engine
0 0
Credit Agency I Mapped Score A:
1 3
AAA AAA = 50 ...
IF (Black List Entry exists): Paym. (days after Due) Score PY
S=0 0 0
Credit Agency II Mapped Score B: ELSE <5 4
B+ B+ = 30 S = (2*A + 3*B + 5*C
5*C)+/ 5*D)
10 / 15 <10 8
<20 15
...
Score D = SV DU PY = 3
Black List 27.5

Int. Scoring S = 19.3
Agenda

3.Master Data

Reporting
Ad hoc reporting in SAP Credit Management

Various reporting and analysis options are available in SAP Credit Management,
such as creating warning lists, analyzing liability data for one or more customers, or
logging the last order-related credit check for a customer
Various mass changes are available in SAP Credit Management, such as

calculating the creditworthiness, risk class, or credit limit for the first time for a
number of customers

Report UKM_MASS_DSP2
UKM_MASS_DSP2 Report for Credit Segment Data:

Credit Limit (current /calculated) + validity date
Blocked Customers in SAP Credit Management
Customers to monitor
Resubmission Date
Assigned Credit Analyst
Plus all UKM_MASS_DSP1 Fields e.g. 80% for early warning list

Report UKM_MALUS_DSP
UKM_MALUS_DSP Report for Credit Limit Utilization

Credit Exposure (%)
Credit Limit Still Available / Amount by which credit limit exceeded (absolute)
Customer Credit Group
Credit Analyst or Group
Resubmission Date
Blocked Customer in SAP Credit Management

Report UKM_VECTORS
UKM_VECTORS Payment Behavior KPIs

Total Sales Volume in last 12 months
Gross Total of Cleared Items with Cash Discount Not Taken
Gross Total of Cleared Items without Cash Discount Loss
Av. Arrears with cash discount payments
Av. Arrears without cash discount payments

Report UKM_COMMITMENTS
UKM_COMMITMENTS Display / Correction of Commitment Data

(Credit Exposure)
Display of commitments, for example, by commitment type or credit horizon
Detail view of commitment items (e.g. open items, open orders )
Due date of open items and open orders
Navigation

Agenda

4.Summary

Agenda
1.SAP Collections Management Introduction

2.Process Collection of Receivables
3.Process Control Collections of Receivables
4.Process Data Synchronization and Creation of Worklist
5.Analytics

Financial Supply Chain Management with SAP
SAP Credit SAP Biller Direct

(Electronic Bill Present- SAP Dispute SAP Collections
Management ment and Payment) Management Management
Check Finance
Issue Forecast Resolve Collect Settle
Credit Working Reconcile
Invoice Cash Disputes Cash & Pay
Worthiness Capital
Order-to-Cash
Collections Management Important Business Issue
Increasingly bad payment behavior

Increasing Days Sales Outstanding (DSO)
No reaction on automatic correspondence like dunning
Financial situation influences customer relationship
Collections Management today is mostly a time-consuming, costly and

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

What Are the Business Objectives?
Increase share of collected receivables

Reduce Days Sales Outstanding (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

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

Agenda

5.Analytics

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
Supervise collection process
Main Tasks (are all about
processing the daily worklist):
Prepare customer contact
Contact customer
Document customer contact
Data Synchronization and Creation of Worklist Process
Replicate Transfer
Customer Data from Create
Worklists
Monitoring
Master Accounts
Data Receivable
Master data Initial transfer Create worklist Monitor master

synchronization Periodic transfer items data
Contact persons Distribute synchronization
Selected transfer
Collections unassigned items Monitor parallel
Management runs
specific data

Functionality Supporting the
Collection of Receivables Process
Prepare
Access Contact
Customer
Worklist Customer
Contact
Automatically created Key figures per worklist item Promises to pay

Personalization Valuation detail Dispute cases
Search function Due date grid Resubmissions
Statistics Invoice overview Customer contact
Overview of customer account
Overview of past payments
Overview of past contacts
Check resubmissions
Collection Worklist
Each collection specialist gets a daily worklist containing all customers who should be contacted.
Customers are valuated and prioritized according to collection rules in a collection strategy.
Aging of receivables per Detail valuation of customer

selected customer per collection rule
Link to business partner Assign items

Refresh worklist
Display completed items
Search for other business partner
Summarizes information concerning

Customer account in Accounts Receivable
Past collection activities
Credit Management

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
Detailed information per customer about
Valuation according to collection strategy
Aging of the customers receivables (due date grid)
Personalize worklist by setting as default
Search function (view other customer account or
other worklist)
Navigation to business partner master from the worklist
Statistics about degree of worklist processing

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

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

Process Receivables Invoices (Open)
On the Invoices tab page 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 View promises to pay View dispute case(s)

Customer Data of selected invoice per selected invoice per selected invoice
Customer Contact Person
Display or print
billing document in
PDF format

Example Printing Invoice in Worklists

Process Receivables Past Payments
The overview on 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
Process Receivables Promise to Pay
The overview on promise to pay shows all promises to pay that were given for the open invoices
displayed on the invoices tab. You can navigate to the details of a selected promise to pay,
change or withdraw a promise to pay.
View promise Change Withdraw

to pay promise to pay promise to pay

Process Receivables Dispute Case
The overview on dispute case shows all dispute cases that are related to the open invoices
listed on the invoices tab. You can navigate to a selected dispute case and if you have the
authorization process the dispute case. Furthermore, you can display which invoices are
assigned to the dispute case.
Navigate to selected View assigned
dispute case invoices

Collection Activities
Documenting 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

Promise to Pay Process
Hello Mrs. Brown, did you

recognize that invoice 4711 has
Hello Mr. McFee, thank
been overdue since 4 weeks?
you for reminding me.
We will pay the full
amount by Wednesday
next week.
Tom McFee
Accounts Payable Manager

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

Tom McFee enters promise to pay
in the system

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 promises 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

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.

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.

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
First line of note

Suppress customer from worklist
until resubmission date

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

Agenda

2.Roles and Processes
6.Analytics

Functionality Supporting the
Control Collection of Receivables Process
Collection Manager
Adjust
Define Maintain Supervise
Business
Collection Collection Collection
Partner
Strategies Groups Process
Master Data
Collection rules Collection group Business partner Allocate worklist

Collection strategy Collection profile items
Control statistics

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)

Data Sources for Collection Rules
SAP Accounts Open Item Data

Receivable Dunning Data
Payment Data
Customer Data
SAP Dispute
Management Dispute Case Data
Promise To PayData
Contact Data
SAP Collections Resubmission Data
Management
Risk Class
Credit Limit Utilization
SAP Credit
Management

Maintain Collection Strategy
The collection manager decides on the kinds of 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

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

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 No. of completed No. of completed Total number of
worklist items worklist items worklist items worklist items
where the customer where the customer
was reached was not reached

SAP AG 2009. All rights reserved. / Page
Agenda

6.Analytics

Functionality Supporting the Data Synchronization and Creation of
Worklist Process
Replicate Transfer
Customer Data from Create
Master Accounts Worklists Monitoring
Data Receivable
Customer /Vendor Initial transfer Create worklist Monitor master

Integration Periodic transfer items data
Create Collections Distribute worklist synchronization
Selected transfer
Management role items Monitor parallel
Change collection runs
segment data

Complete Business Partner Master Data
Report: Assign/Change Business

Partner Collection Profile
Assign
Create collection
Assign
Collections Assign group
collection
Mgmt collection different
specialist
business profile to default
(optional)
partner role group
(optional)
Report: Change Business

Partner Segment Data

Agenda

6.Analytics

Analytics in SAP Collections Management
(as of SAP Enhancement Package 1)
Analytics for SAP Collections Management enable you to control and

optimize your collection activities
Analytics for SAP Collections Management comprises the following analysis

scenarios:
Analysis of worklists
Analysis of customer contacts
Analysis of invoices and promises to pay
Analysis of open items linked with organizational units of Collections
Management

Analysis of Worklists
Business value:
Measure performance and productivity of collection
groups/collections specialists
Measure effectiveness of collection strategies
Main key figures:

Number of worklist items
Number of completed worklist items
% Completed worklist items
Amount to be collected
Amount processed (including amount promised to pay
and amount disputed)
Main characteristics:
Collection specialist
Collection group
Collection segment
Collection strategy
Analysis of Worklists Daily Collection

Analysis of Worklists Daily Collection

Analysis of Customer Contacts
Business value: Measure performance and productivity of

the collection specialists
Main key figures:

Number of customer contacts
Amount promised during the customer contact
Original disputed amount of dispute cases created during contact
Number of promises to pay created during contact
Number of dispute cases created during contact
Number of resubmissions
Contact date
Contact result
Contact type
Collection group
Collection segment
Collection strategy
Business partner
Analysis of Invoices and Promises to Pay
Business value: Measure effectiveness of collection

activities and volume of invoices managed in SAP
Collections Management
Main key figures:

Amount promised
Amount paid (referring to promise to pay)
Amount invoiced
Amount paid (of invoice)
Number of invoices
Number of promises to pay
% Kept / % Broken
True DSO
Days in arrears
Promise to pay level / Promise to pay state
Invoice number
Document date
Payment date (of invoice)
2011 SAP AG. All rights reserved. Customer www.scensum.com. 111
Analysis of Open Items Linked with Organizational Units of
Collections Management
Business value: Due date analysis for organizational units

of SAP Collections Management, ability to plan ahead
Main key figures:

Overdue for more than 90 days
Overdue from 61 to 90 days
Due within 30 days
Due within 30 to 61 days
Due within 61 to 90 days
Due within more than 90 days
Collection segment
Collection group
Business partner

Due Date Analysis

Agenda

4.Summary

SAP Credit Management Summary
Customer Challenges
Takes too long to evaluate credit
Inconsistent methods and policies
No global view of exposure
Evaluations hold up sales orders
SAP Functionality Benefits

Analyze risk and set policy quickly Faster credit decisions
Consistent evaluation and policy Lower
costs and resource
demands
Global view of credit exposure
Reduce bad debt write-offs
Automatically update exposure
throughout customer lifecycle Reduce sales order delays

SAP Collections Management Summary
Challenges
Inconsistent account prioritization
Labor intensive and long cycle times
Inconsistent collection strategies
High costs of collections
Increase bad debt risk
Functionality Benefits
Rules-based collections strategies Improved collections rates
Prioritization via worklists Reduced bad debt expense
All relevant information at a glance Streamline collections and
reduce operating costs
Proactive targeting of late pays
Reduce DSOs

Thank you
For more information feel free to contact:
Vidar Greve Johannesson

vgj@scensum.com
www.scensum.com

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SAP Credit and Collection

1.SAP Financial Supply Management Business Issues and value

2011 SAP AG. All rights reserved. www.scensum.com. 2

Copyright 2002 by Randy Glasbergen

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Days In Inventory Days Sales Outstanding

Cash Flow Cycle

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Current Payables Receivables Inventory Best Practice Discrepancy resolution 47 %

With SAP Financial Supply Chain Management customers were able to

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Independent functions Fragmented and inefficient

No coordination in collections/ Paper-based and labor-

Inconsistent credit Lack of standardization

Poor insight into High Bad Debt Risk Fragmented stand-alone

Lack control over processes, No integration with GL or

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Monitor performance of financial processes SAP CPM

Insight & Implement financial controls and fraud

Establish greater cross-functional coordination SAP ERP Financials

Organize unstructured data and collaborate

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1.SAP Financial Supply Management - Introduction

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1.SAP Credit Management Introduction

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SAP Credit SAP Biller Direct

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Year 2007: approximately 129,822 corporate bankruptcies

Average delay in payments for Western Europe between

Ineffective credit management in distributed sales

Information needed for credit decisions is spread out all

No credit history available when doing business with

Communication between sales, credit, and finance

A customer is treated differently in different business units

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System to implement a company wide credit policy

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Collect internal and external information about the

Risk Class III

Very Good Very Bad Score

Best Case Client: Possible Actions:

High Risk Low Risk Risk of

Credit Limit Management

Credit Rules Engine

Credit Manager Portal

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Sales assistant enters credit Send credit case to

Assign credit manager Send workflow item to

Send workflow item to Send back credit case

Change limit in Close credit Send notification to

Review and save

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XML Real Time

Original XML Document is stored in the

1.SAP Credit Management Introduction

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Links launch Action button leads

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1.SAP Credit Management Introduction