Professional Documents
Culture Documents
CR and Collect PDF
CR and Collect PDF
Management
Vidar Greve Johannesson
vgj@scensum.com
Agenda
Sale + Actual
Order Delivery +
Delivery + payment
placed invoice
Invoice date
time
Days In
Payables Days In Receivables
(average time to (average customer payment time)
payment of supplier)
Cash
Expected
payment
payment date
for inventory
Accessing information 18 %
71
bn $
Payment reconciliation 26 %
49
bn $
110 Managing customer behavior 28 %
bn $
Invoice presentment 29 %
Check Finance
Issue Forecast Resolve Collect Settle
Credit Working Reconcile
Invoice Cash Disputes Cash & Pay
Worthiness Capital
Order-to-Cash
Default Probability
30 %
Cash on delivery
Letter of credit
20 %
Advance Payment
Invoice
Risk Class I = Customer
Credit Case
Credit case for structured processing of credit limit applications
Track status and result of credit limit applications
Credit Information
Interface to external credit agencies
Input parameters for scoring rules
BW Content
Functions
Alert Alert
Manages the credit profile of a customer
Monitor credit exposure / limit in a Credit
Limit
central system
Web-Based access to customer„s
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
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
Need more
information? yes
no
Approve / reject
credit limit application
Define details
Add note
Add Attachments
Confirmation
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)
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-do‟s
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
© 2011 SAP AG. All rights reserved. www.scensum.com. 24
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
© 2011 SAP AG. All rights reserved. www.scensum.com. 25
Integration with External Credit Agencies
SAP
Enterprise Portal
Credit
Manager Portal
Real Time
SAP
Credit
Management
D&B
Creditreform
External Credit
Information System
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.
© 2011 SAP AG. All rights reserved. www.scensum.com. 30
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
© 2011 SAP AG. All rights reserved. www.scensum.com. 31
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.
Scoring Rule:
Rules that define how
a customer is scored
(e.g. industry, D&B,
legal form, country)
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 €
Navigation
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
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
Collection Group
Collection Specialist
Collection Manager
Main Tasks:
Define or adapt collection strategies
Collection Specialist
Keep collection groups up-to-date
Adjust business partners
Supervise collection process
Collection Specialist
Main Tasks (are all about
processing the daily worklist):
Prepare customer contact
Contact customer
Document customer contact
© 2011 SAP AG. All rights reserved. www.scensum.com. 64
‘Data Synchronization and Creation of Worklist’ Process
Replicate Transfer
Customer Data from Create
Worklists
Monitoring
Master Accounts
Data Receivable
Collection Specialist
Prepare
Access Contact
Customer
Worklist Customer
Contact
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.
1
Select worklist item and view data
Maximum amount
to be collected
Navigation
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.
Display or print
billing document in
PDF format
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.
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.
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
Promise to Pay
Promised amount
Promised to date
Promised by
Note
Invoice reference
…
Tom McFee enters promise to pay
in the system
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.
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.
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
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
Collection Manager
Adjust
Define Maintain Supervise
Business
Collection Collection Collection
Partner
Strategies Groups Process
Master 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
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
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.)
Replicate Transfer
Customer Data from Create
Master Accounts Worklists Monitoring
Data Receivable
Assign
Create collection
Assign
‘Collections Assign group
collection
Mgmt’ collection different
specialist
business profile to default
(optional)
partner role group
(optional)
Business value:
Measure performance and productivity of collection
groups/collections specialists
Measure effectiveness of collection strategies
Main characteristics:
Contact date
Contact result
Contact type
Collection group
Collection specialist
Collection segment
Collection strategy
Business partner
© 2011 SAP AG. All rights reserved. www.scensum.com. 110
Analysis of Invoices and Promises to Pay
Main characteristics:
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
Main characteristics:
Collection segment
Collection group
Collection specialist
Business partner
Customer Challenges
Takes too long to evaluate credit
Inconsistent methods and policies
No global view of exposure
Evaluations hold up sales orders
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