Migrating to Oracle Advanced Collections: An Overview for Oracle Receivables Users

An Oracle White Paper Winter 2007

Part One – A Better Collections Management Paradigm

Oracle Advanced Collections, an Oracle E-Business Suite product recognized as the leading enterprise-wide collections management solution, replaces the Collections Workbench in Oracle Receivables in Release 12.0. Current Receivables customers, implementation teams, Oracle partners, and prospective Oracle customers need to understand the benefit, impact, and migration steps necessary to migrate an Receivables-based collections operation to one using Advanced Collections.

Collections and receivables management organizations are under pressure to collect more while reducing their cost to collect. Oracle Advanced Collections provides the tools needed to efficiently manage collections processes in today’s complex economies, growing businesses, and increased globalization. Collections managers and collections organizations are challenged with a number of business and operational problems that Advanced Collections solves: • Providing collections agents with accurate and complete data about transactions and delinquent customers. This has often been impeded because of data synchronization flows run between disparate corporate systems or batch processes done during off hours. It may also be caused by outdated and inaccurate information about the customer such as old addresses, contact information, phone or fax numbers.

Identifying delinquent transactions accurately, consistently and timely. The longer an invoice is unpaid, the less likely payment will be made. Collectors often don’t know which customers are delinquent until aging reports are run. Because they have no way of prioritizing their work, they frequently focus on individual invoices or more cooperative customers while ignoring customers with large balances. Identifying customers who have high dollar service contracts or who have large payments coming up and have habitually paid late. If these customers can be notified before the next payment is due, corporate cash flow is less likely to be negatively impacted. Knowing which accounts need attention and which don’t. Inexperienced collectors often neglect the accounts that are most likely to pay, thus impacting collections goals. Unresolved issues such as broken promises to pay or disputes often slip through the cracks.

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Managing different customer segments differently. Regional regulations, customers in stressed or volatile industries, or new customers may need different treatment plans. Ensuring that best-collection practices are consistently applied within collections teams to provide uniform treatment of similar customers. Reducing the hours per day collectors spend performing manual, time-consuming tasks that take them away from interacting with customers to get payment.


“..the consistent achievement of exceptional results is indicative of a new process or paradigm, and that is exactly what collection software provides. Collection software is not simply a tool, among possibly many others, to help collectors do better. Rather, collection software provides an entirely new approach to collecting a portfolio of … receivables within a unified process. “ David Schmidt, Paystream Advisors, Inc. “Receivables and Collections: Buyer Guide””

The Collections Workbench in Receivables was originally intended for AR clerks who occasionally performed collections activities. These clerks also performed the account management, cash application, transaction management and other accounting related activities in a receivables department. Over time, as more manual functionality was added to the Collections Workbench in the form of new windows, navigation became more complex, and usability decreased. Oracle Advanced Collections leverages both transactional and customer data. It applies customer relationship management concepts to receivables management processes. It also automates collections processes that had been previously manual and streamlines user flows. It seamlessly integrates with other E-Business Suite applications. Since its initial release in 2001, industry analysts and early adopters of Oracle Advanced Collections have recognized it as the next-generation collections management enterprise-wide solution.
Key Features

If you migrate from the Receivables Collections Workbench to Advanced Collections you can: • Leverage real-time transactional and customer data
• • • • • • • • •

Execute proven collections best practices Use configurable scoring, strategies, dunning plans Treat different customers differently Proactively manage collections issues Automatically identify delinquent/pre-delinquent customers Push only actionable, prioritized work to collectors Use Call Center enabled tools for multi-channel customer contact Streamline collections process Navigate more easily through collections screens

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This person uses Advanced Collections’ HTML screens to review and manually assign White Paper Title Page 4 .The person who is generally a functional manager or supervisor in a collections organization. credit memo. Advanced Collections identifies delinquencies by running a ‘delinquency status determination’ concurrent program and maintains this information in delinquency tables. receipts.The person using Advanced Collections to work with and resolve customer non-payments. The collections agent’s primary job is to contact a customer regarding a collections issue in a collections organization. It’s important to understand these concepts and to know how Advanced Collections uses them. it is a transaction that is overdue. chargebacks and debit memos. The criteria used to determine which transactions are delinquent are configurable. Receivables maintains transaction tables which Advanced Collections accesses.The person using the Collections Workbench in Receivables. For additional information on Advanced Collections refer to the Implementation Guide and User Guide available on Metalink. or bill receivable. Manual Research/Prep Customer Contact Automated Follow Up Delinquency In Advanced Collections.• • Automate correspondence notification Track payments. chargeback. This person performs receivables related activities (such as cash application. incomplete work. Receivables Clerk . and transactions management) along with occasional collections activities with customers. The seeded delinquency configuration uses a payment schedule for which the dispute amount is less than the total amount overdue and the due date is prior to the current date to determine delinquency. Collections Manager . User Role/Responsibility These terms describe the functional person who normally uses part or all of the applications. promises. Delinquencies are identified from invoices. interactions automatically streamlining interactions between various team members KEY CONCEPTS AND DEFINITIONS TO UNDERSTAND Automation Improves Collections Efficiency 7 6 Advanced Collections supports a number of innovative processes and concepts that are different from traditional collections practices. Transaction Hours/day 5 4 3 2 1 0 In Receivables. Collections Agent . Invoices can include one or more payment schedules. debit memo. an invoice.

Customer (TCA Party) . enlist the support of the sales and service organizations in collections.of customers. The data levels controls numerous features in Advanced Collections including visibility to nodes on collectors work queue. and bill to level. proactively manage and track customer interactions. generally for billing purposes. Transaction Bill To Location Site– – In terms of operational data level.Receivables creates accounts for parties when an order is generated. Most collections organizations operate and do business with their customers at one of these data levels most of the time. strategies (or dunning). ultimately to improve days sales outstanding (DSO) and customer value through more effective relationships… “ John VanDecker. They also use HTML manager screens to view data regarding later-stage delinquency situations that require their review for further action. “Leveraging Revenue and Receivables Management” Collector’s Work Queue provides a high-level list of all actionable work assigned to or owned by a collections agent. account. Meta Group/Gartner Group. Other operational data levels include one or more transactions. this is a specific delinquent transaction. and default displays. Accounts can have one or more Bill To addresses. Scoring Engines and Scoring Components Scoring engines consist of one or more scoring components and they can be configured to provide a score at the customer. schedule concurrent programs. This work is automatically ‘pushed’ to the agent as part of the automated collections management flow provided by Oracle Advanced Collections Operational Data Level Oracle Advanced Collections supports four data levels and displays most information at all four levels. Account (Receivables Customer) The address in an account to which a specific group of transactions are associated. Or the collections organization may collect from individual transactions.work when agents are temporarily away (vacations or illness). Collector’s Work Queue “Solutions that provide decision support for collections analysis and strategies. White Paper Title Page 5 . Displays cumulative data and balances to the user. and configure system lookups. These data levels are: – Also called “Organization”. dunning and strategy parameters system profiles. Ability to drill down or roll up from data level to another is provided in Advanced Collections. Advanced Collections uses configurable scoring engines for two purposes: to determine whether a transaction is delinquent and to determine the business value –or collections score . and provide portfolio performance measurements.The person uses the Advanced Collections implementation and setup module to set collections scoring. Collections Administrator . Not always the same as “ship to”.

If the payment is not made a ‘broken promise’ is created and posted to the agent’s Work Queue. Collections can use the customer’s collections score and the oldest aged invoice to determine the content and delivery method of the dunning notice. Advanced Collections can automatically assign a ‘dunning callback’ to a collector who will see that action on their Task node in the Collector Work Queue. delinquency amount/range. sales revenue to collecting organization. industry or virtually anything else. company size. Additionally. Payment Oracle Advanced Collections supports the ability for collectors to take payment from customers through either credit card or bank Electronic Fund Transfers. Payments may also come from the lockbox process in Receivables or self-service payments from customers using Oracle iReceivables.The traditional method used to notify a delinquent customer about an unpaid balance. Promise information is maintained by Collections and used to reconcile promises against actual payments. email or printed letter. Collections Method Deploying organizations may choose from two collections methods supported by Advanced Collections: dunning plans and collections strategies: Dunning Plan . Advanced Collections provides the ability to send dunning letters via fax.Compared to Dunning Plans. Segments are used by scoring engines to facilitate the processing of the score calculation. These segments are then applied to Strategies (optional) or Scoring Engines (required) in order to apply the most appropriate strategy and scoring engine to a particular set of customers. Promise to Pay Oracle Advanced Collections supports the ability for a collector to take a customer’s promise to pay in the future for one or more transactions. If payment is not made within a specified period of time. this collections method supports more complex means to contact and manage customers about their receivables situation. Segmentation provides the means to create sub-sets of the entire customer database. This allows for different scoring engines and strategies to be used for different groups of customers. Segments A way to group customers based on any database criteria including geography. payment schedule due dates. Collections Strategy . Collections strategies White Paper Title Page 6 .Collections scores are similar to a customer’s credit score but they generally guide how aggressively the customer is treated during collection activities.

Work items are timed to be executed serially. which are actions performed by either the system (send a reminder letter) or the collector (call this customer). Click on the section name in the Appendix to return back to this chart. NOTE: You can click on links in this chart to see a screen shot of the described feature in an Appendix.consist of one or more work items. IMPACT ON RECEIVABLES USERS: COMPARATIVE CHART Let’s take a look at what Oracle Advanced Collections offers for Oracle Receivables users. the best practice recommendation is to use collections strategies. strategies (or dunning). Unless a deploying organization has no need to do anything more complex than simple dunning. This allows for flexibility as the organization changes in the future. This section compares previous functionality in Receivables with what is now provided by Advanced Collections. Collections strategies can also be used to alert pre-delinquent customers about a pending payment. Functional Comparison Chart Receivables 11i Navigator Menu: Customer Calls Customer Account Account Overview Aging Correspondence Account Details Transaction Overview Scheduler Work Prioritization: Customer Search Call Scheduler Aging Reports Advanced Collections r12 Navigator Menu: Collector Work Queue Collections Statements Search Reports Navigation Details and Comments Login as Collections Agent > Collections Navigator Menu. Strategies are based on collections scores so different strategies can be used for customers with ’good’ or ‘bad’ value scores. and default displays Receivables Reports can be added to the Collections menu Work Prioritization Collector Work Queue Login as Collections Agent > Collectors Work Queue Select Navigator Menu > selected record from list will automatically appear on Collections header White Paper Title Page 7 . Search: controls numerous features in Collections including visibility to nodes on collectors work queue.

collections agents can select the data level that sets the View of the data displayed. Used in Dunning Plans and Strategies Segments: N/A Segments: Set up during implementation Default segment is “all customers” Dunning Plans: Dunning Plans: -Set up during implementation -Generated as report -Preconfigured Dunning letters are -Sample Letters included available via XML Publisher tool -Dunning History displayed in . Customer collections score is displayed on the Collections header. Account collections score is displayed on the Account tab Additional segments can be configured when Advanced Collections is licensed to deploying organization. Additional optional tabs are displayed when Advanced Collections is licensed to deploying organization: Strategy Lifecycle (for later stage collections management) Custom Tab 1 Custom Tab 2 Case Management (for Lease Collections) Contracts (for Lease Collections) – not currently accessible Loans (for Loans Collections) On the Collections main header screen.Receivables Dunning history is dunning letters -Ability to manually exclude or displayed on Correspondence History include in dunning activity table .Receivables 11i Advanced Collections r12 Navigation Details and Comments Collections Main Screen contains a header and tabs.Ability to resend Collections’ dunning is provided . Manager login as Collections Administrator Select Setup Checklist > Collections Method > Dunning Plans -Add details including dunning correspondence templates and delivery method Single Screen Navigation Single Screen Navigation: N/A Collections header with tabs below: Multiple screens need to be opened Profile with Metrics History Account Transaction Aging Notes Tasks Operational Data Level: Account Bill To Site Transaction Scoring: N/A Operational Data Level: Customer (Party) Account Bill To Site Transaction Scoring: Set up during implementation and managed by the system.Statements accessible from Ability to generate and reprint Navigator menu Statements -Receivables will continue to support Statements Collectors logs in as Collections Agent > History tab > Correspondence to see dunning history > Resend Dunning button to resend Dunning callbacks are automatically posted to Collector Work Queue Login as Collections Agent > Navigator menu > Statements For Statement history: Collectors logs in as Collections Agent > History tab > All history to see statements White Paper Title Page 8 .Ability to include or exclude customer.Optional dunning callbacks can be Correspondence -Ability to add Finance Charges to assigned to agents .Ability to Resend Receivables dunning letters will be accomplished by using Receivables’ modified Dunning process which will print only historical dunning notices. account or bill in dunning activity . Users can change the View to drill down or rollup customers’ data. Statements: Statements: .

Collector can turn on /off credit hold -Ability to place an Account on Credit Hold or remove them from .Promise record automatically saved on History tab Credit Management integration: Credit Management integration: . Tolerance.Ability to see across operating units .Two fields (amount and date) plus two forecasting fields used to transactions . Credit Rating. From Collections Header. Aging tab.Profile tab displays Credit Rating. Aging tab. Multi Org Access: Multi Org Access: . -Account tab displays Status. .Automated Promise Reconciliation collecting on the promise process matches promises to payments.Promise note manually track likelihood of .Controlled by User Security Profile units settings . -Fields in Receivables display: Credit Limit. Not all details are displayed on the transaction details page. with customer name and contact name displayed > Actions from toolbar > select Credit hold or Credit release Status is displayed on Profile tab From Collections header. Credit and Order Limits Credit Hold: Credit Hold: .Ability to see across operating .Receivables 11i Advanced Collections r12 Navigation Details and Comments Log in as Collections Agent Collector name is displayed in Profile tab From Collections header > Operating Unit field Collector field: Collector field: Customers are manually assigned a -New concurrent program automatically creates Collector collector in Customer form resource in Resource Manager. Risk Code.Customer call history is displayed displayed Log in as Collections Agent From Collections Header.Ability to submit disputes screens From Transaction tab > Transaction Details button Collector will able to navigate to Receivables Transaction Workbench from the Navigator menu.Ability to take customer credit card and Bank EFT payment for one or more transactions . Collectable. Tolerance.Ability to view details for specific for specific transactions on various transactions .Ability to see summary and detail . click on History > AR Calls White Paper Title Page 9 .Automatic payment authorization via Oracle Payments module .Controlled by User Security Profile settings Transaction Details Transaction Details . Credit Status Account Status. Account tab by clicking on the Payment Processing button where Promise or Mass Promise tab is accessible From Collections header > Profile tab to see Credit Risk and Credit Status or Account tab to see Tolerance From Collections header.Payment note . promises to pay for one or more transactions can be taken from Transaction tab. payments can be taken from Transaction tab.Payment record automatically saved on History tab Promises to Pay and Promises to Pay and Promise Reconciliation: Promise Reconciliation: -Promise to Pay for single or multiple .Broken Promises automatically created and posted to Collector Work Queue for follow up .Enabled through IEX: Enable Credit Hold profile Credit Hold -Status is displayed in Customer Profile screen Calls/Interactions: Calls/Interactions: Customer Receivables call history is . Account tab by clicking on the Payment Processing button Payment Processing Payment Processing . Risk Code Review Cycle.

comments. account.Receivables 11i Scheduler: . related to -New notes can be created in Collections’ notes fields throughout specific transaction . transaction and other object types specific to the activity Concurrent programs: Concurrent programs: Advanced Collections uses a number of concurrent programs to automate collections processes.Calls manually scheduled by collector Advanced Collections r12 Navigation Details and Comments From Collections header.New notes are automatically related to party. and special instructions throughout the application where logically applicable Login as Collections Forms Administrator > Submit Request See Preconfigured Elements Section for list White Paper Title Page 10 .New calls can be created manually in Tasks tab and will be viewable in Collector Work Queue Cash Application: Cash Application: Screens being moved to Receipts Collectors will have access to receipt workbench Workbench Presented Bills: Presented Bills: Use Bill Presentment Architecture Use Bill Presentment Architecture Collections Reports: Collections Reports: Reports Receivables reports can be added to Collections Navigator Notes/Comments: Notes/Comments: Comments/notes fields. See next section for flows From Collections header > Navigate to > Receipt Workbench From Collections header > Transactions tab > right click and select View Invoice to launch BPA From Navigator > Reports > select from list Notes are visible throughout Collections on various screens Notes tab displays all notes relating to the customer and customer activities Collections will display Receivables notes. bill to. click on Task tab to create new call Collection Work Queue .

New Update Customer Data Take Payment. EFT Credit Card Submit Adjustment Submit Dispute Take Promise to Pay Record a note or automatically insert an Interaction Update and close record Collector Work Queue Nodes Table 1 – Collections Agent Process Process Prioritize Work Step Login Description Provides secure access to Advanced Collections and based on configuration can restrict the data the collector can access Comment White Paper Title Page 11 . Details/ Dispute. Dunning Callbacks. Dispute. Tasks. Summary Data Automatic manager notification if no action taken by action Profile Tab: Credit. These provide a road map on how collections work flows through the application. Delinquent Customers Select Work View Customer Data Header: Customer Contact.FUNCTIONAL BUSINESS PROCESSES AND FLOWS The following section contains three flows that show the agent. Payment. Adjustment. link to Customer Standard. Payments. manager and system process flows available in Advanced Collections. Figure 1 – Collections Agent Flow Collections Agent Flow Prioritize Work Login Collector Work Queue Nodes Strategy Work Items. Correspondence. Payment Processing Strategy Tab: Assigned/Statusing Notes Tab: All Notes Tasks Tab: Previous. Metrics History Tab: All. Adjustments. Broken Promises. Interaction. Promise Account Tab: Account Details. Payment Processing Aging Tab: Summary / Aged Transactions. Promises. Payment Processing Transaction Tab: Summary.

Actions include payment. the system automatically refers back to the UWQ to get the collectors next work activity Comment No more paper reports Pre-identified customers at your finger tips. this information can be sorted and exported to Excel spreadsheets if required Select Work The collector will select a customer based on the prioritized work provided within the UWQ and drill directly into Advanced Collections with the customer information pre-populated Once a customer is selected. promise. dispute. Actions submitted by a collector can launch automated processes that eliminate the need for manual intervention while adhering to a company’s collection policies. Update and The collector can add additional documentation on Close Record a customer by manually entering notes or automatically recording interactions activities. send correspondence. The update customer data processes allow the collector to track and manage all collection activities for a customer. one click No more retyping One form to review and take the appropriate action for a customer Automatically push approvals to the appropriate persons White Paper Title Page 12 . etc.Process Step Use Collector’s Work Queue Use UWQ Nodes View Customer Data Update Customer Data Description Provides collectors with a configured list of customers the collector should focus their collection activities on UWQ provides information in logical groupings. Upon closing the customer record. the collector can review and take action. disposition a transaction.

repossession. litigation. Assign New/Backup Collector. promise activity and customers to assist in load balancing User friendly tool to locate and assign back up collector for short term assignments due to vacation or a leave of absence Specialists view into customers in later-stage of the collections lifecycle with status of bankrupt. Review Assigned Broken Promises Reassign Work Yes Collections Agent No End (responsibility of Collections Administrator) Collector Assignment Collector Reassignment Find Current Collector. Third Party Assignment Table 2 – Collections Manager Process Process Collector Work Assignment Step Login Description Provides secure access Advanced Collections Comment Collector Assignment Manage Delinquencies Use Ownership Tab Reassign collectors Review Delinquent Customer Summary Manager tool to review and move assigned work items. Set Start Date Later Stage Collections (Bankruptcy. Provides at a glance a way to better understand issues your customers are having Triage view into customers following a critical care path White Paper Title Page 13 .Figure 2 – Collections Manager Flow Collections Manager Flow (Collections Manager Responsibility) Collector Work Assignment Login Ownership Tab Review Assigned Strategy Work Items. Litigation. Lease write-off or reported to credit bureau. Repossession. Collections Agent Manage Delinquencies Notification from Agent UI Delinquent Customers Summary Bankruptcies Litigations Repossessions Lease Write Offs Report to Credit Bureau.

Get. Strategies. promise broken and promise task in UWQ IEX: Promise Reconciliation Concurrent Programs and Workflows Up to five scoring engines can be scheduled at one time.Collections System Flow Collections System Processes Update Customer Data Score. IEX Strategy Management would not be run Send Dunnings for Delinquent customers IEX: Create Dunning and Broken Promise Call Backs Workflow Backgroup Process Advanced Collections Data Table 3 – Collections System Process Process Update Customer Data Step Run Scoring. strategies and dunning components and the supporting programs to insure customers receive the appropriate communications. or Dunning Plans Description Advanced Collections seeded standard processes Advanced Collections provides preconfigured scoring engines.Figure 3 . If payment not received by promise date. strategies and work items. Comment Automates the process of scoring and applying work items based on the customers score White Paper Title Page 14 . Cancel Authorization Credit Memo Workflow Request Y AR: Refresh Summary Table Approved? Compares promise against payments received. Strategy or Dunning Adjustment Payment Dispute Take a promise Lockbox process updates based on payments received APIs Customer/ Receivables Data Y Payment Authorization approved N Message Payment Processing: Create. and correspondence templates) can be utilized by the implementation team or they may configure new data elements based on the customers business requirements. Delinquency Status Determination must be run to determine overall delinquency. OPTIONAL: IEX: Purge / Score History Table N Rejection Notification IEX: Scoring Engine Harness IEX: Strategy Management If using Dunning. The preconfigured data elements (scores.

“check is the mail” response. From the Navigator Menu.Process Step Process adjustments Description The system utilizes the Receivable approval limits to insure policy is followed and processes the adjustments Payment system is called using the standard API allowing for real-time collections Process payments Comment No more transferring phone calls for simple adjustments that collectors are approved for No more. Timely and accurate information depends on the concurrent programs being processed at regular intervals. These programs would need to be scheduled by the implementation team to run based on business requirements. which launch the Receivables Credit memo Workflow insuring appropriate approval hierarchy is followed. COLLECTOR AND MANAGER REPORTS Advanced Collections users need summary and detail level reports to support and assess the effectiveness of their collections activities. Take the payment while the customer is on the phone Process disputes Take a promise APIs Concurrent Programs and Workflow Collectors can process disputes. Advanced Collections provides a number of reports for collections agents and collections managers. collectible work is pushed to the collector Scheduled jobs insure accurate and timely data is available for collectors. Provides the tool to document and follow-up on promises made by customers. No tickler files. users can access the following reports from Advanced Collections: • • • • • • Campaign Outcome Summary Report Collector Outcome Detail Report Payment Collector Summary Report Payment Collector Detail Report Payment Campaign Summary Report Payment Campaign Detail Report White Paper Title Page 15 . Collectors can be automatically notified of promises that are not met Advanced Collections uses all the standard APIs provided by Receivables and other applications to automate processes Advanced Collections utilizes concurrent programs and workflow to process work requests through the system in an automated manner.

users can access a number of Receivables reports that have been used by collections personnel.Days Late Receipt Register Receipt Awaiting Bank Clearance Report Receipts Awaiting Remittance Report Remittance Batch Management Report Transaction Awaiting Consolidation White Paper Title Page 16 . These reports can be added to the collections agent responsibility and be accessible from the Collections menu: • • • • • • • • • • • • • • • • • • • • • • • Account Status Report Adjustment Register Aging Reports (6 reports) Applied Receipts Register Automatic Receipt Batch Management Report Automatic Receipt Awaiting Confirmation Bad Debt Provision Report Billing History Billing and Receipt History Collections Effectiveness Indicators Credit Hold Report Customer Credit Snapshot Disputed Invoice Report Invoice Print New Invoices Past Due Invoice Report Publish Actual Receipt Publish Receipt Forecast Receipt Analysis .• Campaign Schedule or Collector Promise Reconciliation Report Summary Campaign Schedule or Collector Promise Reconciliation Report Detail • Additionally.

Please see the Advanced Collections implementation guide for the optional required application setup steps.Part Two – Migrating to Advanced Collections PRE-IMPLEMENTATION CHECKLIST As noted in the Functional Comparison Chart in Part One of this white paper. Advanced Collections Checklist White Paper Title Page 17 . USING ADVANCED COLLECTIONS’ IMPLEMENTATION CHECKLIST Functional and technical managers responsible for setting up and implementing Advanced Collections start the process by navigating to the Collections Checklist. Advanced Collections uses a number of other E-Business Suite products to provide functionality for some features. an setup tool designed to ease implementation and provide a single place to record and manage operational setup decisions.

Advanced Collections Task Page The Questionnaire also enables or disables a set of Task Pages on which the manager provides additional detailed information that set additional settings for Advanced Collections.Advanced Collections Questionnaire Page The Checklist guides the manager through a Questionnaire that asks a few key questions about the intended use of Advanced Collections. White Paper Title Page 18 . The manager’s responses to these questions automatically set system profiles and settings for Advanced Collections.

Since some system profiles used by Advanced Collections come from other E-business Suite modules. setup Dunning Plan You can use the preconfigured dunning letters or optionally create new ones Refer to XML documentation See below for additional details Install XML Publisher ( if sending dunning letters) Run convert script to display Receivables Scheduled Calls in Collections History tab (optional) Evaluate Menu access and Responsibilities Schedule concurrent processes Determine how users will access Collections functionality and reports Refer to Advanced Collections User Guide for detailed information White Paper Title Page 19 . determine operational data level.The benefit of using the Collections Checklist is that it allows functional experts to do an ‘out of the box’ set up of Advanced Collections independent of corporate IT staff. See Advanced Collections Implementation Guide for a list of non-Collections profiles EASY SETUP STEPS FOR MIGRATING FROM RECEIVABLES For deploying organizations that have decided not to license Advanced Collections. managers will need to use the standard Forms Profile screen to set these profiles. here are the setup tasks you need to do: Task Complete Setup Questionnaire and Tasks Configure Dunning Letters (optional) Description For example.

and a 15 to 25 percent reduction in bad debt reserves. These metrics mean productivity gains. They are enjoying a 10 to 20 percent reduction in days sales outstanding (DSO). Paystream Advisors. Indeed. Additionally they can also be used (or easily amended) for use in production systems. a 25 percent reduction in past due receivables. they can be added during implementation. “Receivables and Collections: Buyer Guide” Implementing Advanced Collections is facilitated by the use of a number of preconfigured elements that deploying organizations can use during their planning and testing phases. • • • • • Weighted Average Days Paid (WAP) Weighted Average Days Late Weighted Average Terms Average Days Late Conventional Days Sales Outstanding (DSO) White Paper Title Page 20 . the results of automating collections are dramatic. without increasing staff. If new elements are required to match specific corporate processes. Included in the product are the following templates and queries that can be used at all operational data levels: • • • • • • • • • • • • • • • Payment Confirmation Letter Dispute Confirmation Letter Promise Confirmation Letter Adjustment Confirmation Letter Payment Reversal Confirmation Letter Consolidated Invoice Confirmation Letter Invoice Letter Pre-delinquent Letter Soft Dunning Letter 1 Soft Dunning Letter 2 Moderate Dunning Letter 1 Moderate Dunning Letter 2 Hard Dunning Letter 1 Hard Dunning Letter 2 Hard Dunning Letter 3 Metrics Formulas The following formulas are used in the Profile tab of Advanced Collections. Correspondence Templates and Queries. Advanced Collections uses XML technology to generate and deliver all customer correspondence."The promise of collection automation software is a dramatic improvement in receivables performance. Detailed information on these preconfigured elements is provided in the Implementation Guide for Advanced Collections. Inc. for most companies. that translate into better cash flow." David Schmidt.

• • • • • Delinquency Status Determination Customer Scoring Account Scoring Bill To Scoring Case Scoring (used with Lease Management) Strategy Templates and Work Items Advanced Collections provides preconfigured strategy templates and preconfigured work item templates for deploying organizations using Collections Strategy as its collections method. Dunning Plans do not use templates.• • • • • • • • • True DSO Collection Effectiveness Index (CEI) NSF History Amount NSF History Count Deductions Amount Deductions Count Sales Credit Limit High Credit YTD Scoring Engines Advanced Collections includes preconfigured scoring engines. Deploying organizations that have licensed Advanced Collections use strategies and their associated Work Items. • • • • • • • • • Pre-delinquent Strategy Soft Collections Strategy Moderate Collections Strategy Hard Collections Strategy Catch-all Collections Strategy Litigation Strategy Repossession Strategy Write-off Strategy (for use with Leasing) Bankruptcy Strategy Preconfigured work items are also included: White Paper Title Page 21 .

not all fields are displayed. Most flexfields are also accessible from Advanced Collections. deploying organizations will need to determine where and how. If these fields need to be displayed. there is no need for deploying customers to migrate data. White Paper Title Page 22 . However following analysis of known customer usage.• • • • • • • • • • • • • • • • • • • • Pre-delinquency Courtesy Letter Pre-delinquency Courtesy Call Soft Dunning Letter 1 Soft Dunning Letter 2 Soft Collections Call 1 Soft Collections Call 2 Moderate Dunning Letter 1 Moderate Dunning Letter 2 Moderate Collections Call 1 Moderate Collections Call 2 Hard Dunning Letter 1 Hard Collections Call 1 Hard Collections Call 2 Final Demand Letter Review Customer Customer Site Visit Review Pending Bankruptcy Review Pending Repossession Review Pending Litigation Review Pending Write off (for use with Leasing) MIGRATION CONSIDERATIONS Since most of the historical data generated in Oracle Receivables is now accessible in Oracle Advanced Collections.

Single Screen Navigation Collections Main Screen Return to Functional Comparison Chart Section . Click on the section name below each screenshot here to return to the Functional Comparison chart.APPENDIX 1 – ADVANCED COLLECTIONS SCREEN SHOTS NOTE: You can click on any link in the Functional Comparison Chart to see a screen shot of the described feature in this Appendix. Collections Navigator Menu Return to Functional Comparison Chart – Navigator Menu.Single Screen Navigation White Paper Title Page 23 .

Collector’s Work Queue Return to Functional Comparison Chart Section .Collector’s Work Queue Profile Tab with Metrics Return to Functional Comparison Chart Section – Single Screen Navigation White Paper Title Page 24 .

History Tab Return to Functional Comparison Chart Section .Single Screen Navigation Correspondence History Return to Functional Comparison Chart Section .Dunning Plans White Paper Title Page 25 .

Single Screen Navigation Transactions Tab Return to Functional Comparison Chart Section .Account Tab Return to Functional Comparison Chart Section .Single Screen Navigation White Paper Title Page 26 .

Navigate to Transaction Workbench Return to Functional Comparison Chart Section .Transaction Workbench Aging Tab Return to Functional Comparison Chart Section .Single Screen Navigation White Paper Title Page 27 .

Tasks Tab Return to Functional Comparison Chart Section .Single Screen Navigation Notes Tab Return to Functional Comparison Chart Section .Single Screen Navigation White Paper Title Page 28 .

Payment and Promise Processing White Paper Title Page 29 .Transaction Details Screen Return to Functional Comparison Chart Section .Transaction Details Payment and Promise to Pay Processing Return to Functional Comparison Chart Section .

Dunning Plans White Paper Title Page 30 .Actions list – Credit Hold Return to Functional Comparison Chart Section .Actions Menu Collections Setup Dunning Plans Return to Functional Comparison Chart Section .

View Invoice (using Bill Presentment Architecture) Return to Functional Comparison Chart Section .Single Screen Navigation White Paper Title Page 31 .View Invoice The following tabs are available if you license Advanced Collections: Strategy Tab Return to Functional Comparison Chart Section .

Single Screen Navigation The following tabs are available if you license Advanced Collections and either Oracle Loans or Oracle Lease Management: White Paper Title Page 32 .Single Screen Navigation Custom 1 and Customer 2 Tabs Return to Functional Comparison Chart Section .Lifecycle Tab Return to Functional Comparison Chart Section .

Single Screen Navigation Case Management Tab Return to Functional Comparison Chart Section .Single Screen Navigation White Paper Title Page 33 .Contracts Return to Functional Comparison Chart Section .

Single Screen Navigation White Paper Title Page 34 .Loans Tab Return to Functional Comparison Chart Section .

This includes: Oracle Advanced Collections Implementation Guide Oracle Advanced Collections User Guide Oracle Receivables Implementation Guide Oracle Receivables Reference Guide Oracle Receivables User Guide Oracle University provides product training in many formats including instructor-led classes. These provide functional and technical information for internal users.APPENDIX B –RESOURCES Product documentation is available from OracleMetaLink. internal readers of this whitepaper can refer to Product Portals Advanced Collections Receivables OracleMetaLink Forum Boards (account required) Advanced Collections Receivables Sales and Consulting sites Business Flows and Business Flow Accelerators Global Customers References White Paper Title Page 35 . Product TOIs are available at time of product release. Oracle Advanced Collections Oracle Receivables Additionally. customer site training. and online courseware. customers and partner organizations.

 However. See: Reprinting Historical Dunning Letters. and payments White Paper Title Page 36 . reversals. or  delinquency data levels  Process payments  Create promises  Enter disputes and adjustments  View invoices using Oracle Bill Presentment Architecture  Run Receivables and Collections reports  Preconfigured delinquency creation engine  Preconfigured customer scoring engine  Configurable dunning tool including dunning correspondence and  callbacks  Note: You perform all dunning activities in Oracle  Advanced Collections. Oracle Receivables  provides you with the Dunning Letter Reprint ‐ Historical  Receivables Only program so that you can reprint historical  Days Overdue dunning letters that were sent to your  customers in a previous release of Receivables.APPENDIX C – COLLECTIONS FEATURES FOR ORACLE RECEIVABLES AND ORACLE ADVANCED COLLECTIONS A limited version of Oracle Advanced Collections functionality is available in Oracle Receivables and replaces the Receivables Collections Workbench. Collections Features for Oracle Receivables • • • Collectorʹs Work Queue  Search tool  Collections header and tabs  o Profile with preconfigured metrics  o History  o Account  o Transaction  o Aging  o Notes  o Tasks  Assign collectors using the AR Collector field  View collections information by customer. promises. bill to. adjustments. • • • • • • • • • • • Correspondence for disputes. invoices. Use this  program to conduct collections research for a specific  customer. Oracle  Receivables User Guide. account. Receivables users who have not purchased a license for Advanced Collections are not authorized to use the full feature set of this product. Use the following lists to identify the collections features available for Receivables and for Advanced Collections.

Oracle Advanced Collections Features Oracle Advanced Collections provides the functionality listed above plus the  following features:  • Configurable scoring  • Configurable strategies and work items  • Configurable segments (database views for use with scoring and  strategies)  • Create collections territories using Territory Manager  • Work reassignment  • Additional Advanced Collections tabs:  o Strategy  o Lifecycle  o Custom 1  o Custom 2  • Tabs available with additional licensing:  o If you use Oracle Loans – Loans  o If you use Oracle Lease Management – Case Management  o If you use Oracle Contracts ‐ Contracts      White Paper Title Page 37 .

nor subject to any other warranties or conditions.Migrating to Oracle Advanced Collections: An Overview for Oracle Receivables Customers 01 2007 Authors: Tina Cook. for any purpose.A. CA 94065 U. without our prior written permission. Oracle. electronic or mechanical.S.650.506. including implied warranties and conditions of merchantability or fitness for a particular purpose. Other names may be trademarks of their respective owners. . JD Edwards.7200 oracle. All rights reserved.506. and PeopleSoft. Carol King Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores. This document may not be reproduced or transmitted in any form or by any means.650. whether expressed orally or implied in law. Worldwide Inquiries: Phone: +1.7000 Fax: +1. We specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document.com Copyright © 2005. This document is not warranted to be error-free. are registered trademarks of Oracle Corporation and/or its affiliates. This document is provided for information purposes only and the contents hereof are subject to change without notice. Oracle.

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