Collections - New Functions in SAP ISU

Collections Management
based on SAP for Utilities –

New Functions
Monika Bloching, SAP AG
Note that the new collections functionality presented in the
following slides is a preliminary version and not subject to your
license agreement or any other agreement with SAP. This document
contains only intended strategies, developments, and functionalities
of the SAP® product and is not intended to be binding upon SAP to
any particular course of business, product strategy, and/or
development. Please note that this document is subject to change
and may be changed by SAP at any time without notice.
SAP assumes no responsibility for errors or omissions in this

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

Topics
Additional Flexibility in Dunning
Responsible Agents / Teams
Workload Balancing
Worklist Management
Processing of Work Items
Promise-to-pay / Payment Arrangements
Collection History / Success
Analytics
Appendix: Using BRF

Collections Management - Overview
Execute Activities:
Issue correspondence
Etc.
Execute
Determine Balance Manage Process Work
Collection
Agents/Teams Capacity Work Lists Items
Strategies
Supported functions Supported functions Supported functions Supported functions Supported functions
• Integration with • Collections organiza- • Capacity for each • Release of work lists • Processing of work
Business Rules tion can be set up in activity and team • Monitoring of items in the
Framework brings full SAP Organizational and/or agent can be collections progress interaction center
flexibility regarding Management set up • (Re-)assignment of • Promise-to-pay
activity determination • Tasks, rules and • Available capacities work items • Collection fact sheet
responsibilities are are taken into account • (Re-)prioritization of • Collection progress
used to determine the in activity determina- work
responsible team or tion
agent • Priority assignment
through Business
Rules Framework
Measuring Collections Success

Parameters for Collection Decisions (current solution)
Dunning Proposal Run

Dunning
Procedure A
Days in arrears Days in arrears Days in arrears

>= 10 AND >= 20 AND >= 28 AND
Level 1 last level = 0 AND last level = 1 AND last level = 2 AND Level 3
No Interest frequency >= 7 days frequency >= 7 days frequency >= 5 days Interest: 4 %
Charges: 5 € AND amount >= 10 AND amount >= 10 AND amount >= 10 Charges: 5 €
Amount Amount Amount

> 10 > 100 > 500
Dunning Activity Run

Creditw. Creditw. Creditw. Integrated Score from
>0 > 25 >x Credit Management
Activities Activities
Reminder call Dunning notice

Reminder call

Dynamic Determination of Collection Activities using BRF*)
Collection Strategy A (Result of) Previous Collection

Collection Amount
Etc.
Event Activity
Open Age of
Rule Set amount debt
Logical
Risk operators
Class
Get Data
Mathematical
Expressions: functions
IF RISK-CLASS = Formula Date / time

„HIGH“ AND functions
COLLAMOUNT >…..
Function Etc.
Module
Function FKK_XXX
NEXTSTEP =
SPECIAL_TREATMENT
Return Result
Actions:
Return Score *) Business Rules Framework
Issue Message
Collections Embedded in Organizational Structure
Collection Center
Region West
Multiple independent collections

Responsible Postion:
organizations can be set up
for Collections Collection Manager
In Region West
Teams or individuals can be
Sandy
determined based on tasks and
Collections
TeamCollections
1
Collections
responsibilities
Team Collections
1
Team 1 Team 2
Taking into account absence of

Responsible
for Private
Postion:
Team Lead
agents
Customers
John
Automatic determination and
manual intervention by collection
For customers
range A-K
Collection Agent
manager
Cathy
Allowing workload balancing
For bankrupt Collection Agent
customers
Fred

Responsible Determination
Standard Tasks and Rules
Collection Center
– Responsibility for example based on business partner country, type of
business partner
Collection Unit
– Responsibility for example based on collection activity, type of business
partner, risk class, postal code
Collection Agent
– Responsibility based for example on business partner ID, contract account,
contract, collection amount

Tasks of the Manager Transaction
Create new worklists
Release new worklists
Select worklists
Update attributes of a worklists
Select workitems
(Re-)assign workitems to an agent or to a unit
Unassign workitems
Cancel workitems
Reopen workitems

Display Currency
Created from To
Worklist ID End Date Closed

Worklist Management based on SAP NetWeaver
Multi-Channel Communications
Phone
Letter
E-mail
Fax
Multiple processing
options…
Archive Fax Server Email Server Telephony Dialler Worklist can be
11 provided to agents/
teams for manual
11 processing
SAP NetWeaver / XI
22
Worklists can be
22 submitted to external
systems (such as
Interaction Center / WebClient 22 diallers) via SAP
11 NetWeaver / XI
Collections
Worklist Management
SAP ERP

Worklist Overview and Collector‘s Progress
Interaction Center Lisa Miller

Fred Smart/ Customerin Collections Phone Outbound 0170 3699965
New York City NY 10035 Connected 2:40 / 2:40 Phone 1
Hold Unhold Hang Up Dial Transfer End Dial Pad Ready Wrap Up Not Ready
Accept Reject Hold Unhold Hang Up Dial Transfer End Dial Pad Ready Wrap Up Not Ready
My Collection Work Lists

Identify Account
Interaction Record Worklist Overview Search Worklist Items
Collection Worklist Description Due date Total entries Unassigned My items My open items Total amount Curr. % assign. to me
Collect. Fact Sheet Mandatory reminder calls week 01 10.10.06 500 400 100 60 125.385,00 EUR 30 %
Payment Data
Warning List Januar 15.02.06 1000 1000 0 0 261.615,00 EUR 0%
Disputes Total * 1500 1400 100 60 287.000,00 EUR 10 %
Payment Promises
Invoices
Account Balance
Item Display
T !
Account History
Worklist Progress
AF
DR
Payment My items Assign next items automatically
Payment Search
Dunning Notice
Installment Plan Worklist Details My progress today | My Work Progress | Worklist progress
Document Search
Knowledge Search Status # of items Percentage Amount Perc. of Amt.
Worklist Description Mandatory reminder calls week 01
Call List Total items 100 100 % 25.000 EUR 100 %
Creation Date 02.01.2006
E-Mail
Ranking Rule Oldest open items first, independent of risk
New 0 0% 0 EUR 0%
Fax In process 50 50 % 15.000 EUR 60 %
Text
Letter
Completed 40 40 % 7.200 EUR 29 %
Max 255 Char. Resubm. 10 10 % 2.800 EUR 11 %
Closed 0 0% 0 EUR 0%
Cancelled 0 0% 0 EUR 0%

Work Items in a Work List

Hold Unhold Hang Up Dial Transfer End Dial Pad Ready Wrap Up Not Ready
My Collection Work Lists

Identify Account
Interaction Record Worklist Overview Search Worklist Items
Collection Worklist Description Due date Total entries Unassigned My items My open items Total amount Curr. % assign. to me
Collect. Fact Sheet Mandatory reminder calls week 01 10.10.06 500 400 100 60 125.385,00 EUR 30 %
Payment Data
Warning List Januar 15.02.06 1000 1000 0 0 261.615,00 EUR 0%
Disputes Total * 1500 1400 100 60 287.000,00 EUR 10 %
Payment Promises
Invoices
Account Balance
Item Display
T !
Account History
Worklist Progress
AF
DR
Payment My items Assign next items automatically
Payment Search
Dunning Notice
Installment Plan Worklist Details My progress today | My Work Progress | Worklist progress
Document Search
Knowledge Search Status # of items Percentage Amount Perc. of Amt.
Worklist Description Mandatory reminder calls week 01
Call List Total items 100 100 % 25.000 EUR 100 %
Creation Date 02.01.2006
E-Mail
Ranking Rule Oldest open items first, independent of risk
New 0 0% 0 EUR 0%
Fax In process 50 50 % 15.000 EUR 60 %
Text
Letter
Completed 40 40 % 7.200 EUR 29 %
Max 255 Char. Resubm. 10 10 % 2.800 EUR 11 %
Closed 0 0% 0 EUR 0%
Cancelled 0 0% 0 EUR 0%

Promise-to-Pay Overview
Collection Open item

Activity Run
If P2P is broken the

Worklist entry original open items
will be evaluated
Correspondence Promise-to- again by the collection
P2P initiated pay activity run
Evaluation
Run
P2P
P2P Open P2P Broken
Fulfilled
Update Credit- Execute custom

Correspondence
worthiness -specific activity

Select items for Promise to Pay
Promise to pay
T !
AF
DR
P2P-Category Promise to Pay with items Calculate interest

Reason Code Print Parameters No printing
Temporarily no money
Create Cancel
Interaction Center Based UI for Collectors: Payment Promise
Identify Account
Promised (partial) Payments/Payments |Original Items
Interaction Record
Collecton Worklist
Promised (partial) payments Payments
Collect. Fact Sheet
Payment Data Delete Payment Data Change Payment Data
Disputes Promise Payment Other
Payment Promises Amount Crcy Payment Via Document Value Date Currency
Date Amount Clearing
Invoices 1.12.2005 53,00 USD 0000003600 53.00 0.00 17.01.2006 USD
Account Balance 1.01.2006 53,00 USD Visa,***3123, 12/2007
Item Display 1.02.2006 53,00 USD
Account History
T !
Payment
Payment Search
AF
DR
Dunning Notice
Back Save Change Substitute Withdraw Status Change
Installment Plan
Document Search General Data | Correspondences
Knowledge Search
Call List Total Promise to Pay Amount 159.00 USD Creation Date 18.11.2006
E-Mail
Still open 119.00 USD Created by Lisa Miller
Fax
Currently due 66.00 USD
Letter
Status/Current Fulfillment rate Not calculated Next check 03.02.2006
Category 3 part. payments Reason Check of Fullfillment Rate
Total Item Amount 146.00 USD

Total Interest Amount 13.00 USD Payments 53.00 USD
Total Charge Amount 0.00 USD Other Clearing 0.00 USD
Monday, January 9th 2006 5:43 pm

Processing Work Items
Additonal functions …
Collection fact sheet
Extended collections history
Action list to support collectors

Automatic resubmission of work
items
Link to respective functions
Additional BI extractors

Collection Fact Sheet - Sample
Fred Smart/ Customer in Collections Phone Outbound 0170 3699965
Identify Account Collection Workitem | Collection Strategy | Additional Collection Information Work item update | Notes
Interaction Record
Collecton Worklist More Details
Collector /Unit Sarah Cash * (if not unique)
Collect. Fact Sheet Collection Center Central Collection Department
Payment Data Collection Step First (friendly) Reminder Call Category
Reminder Call Reassignm. Reason
Disputes Status/ Mandatory Released yes Creation Date 29.03.2006 Resubmission Date
Trigger amount Processing Deadline
Payment Promises 1.000,00 EUR 01.04.2006
Remaining Amount Last Coll. Contact 16.02.2006
Invoices 1.000,00 EUR
Fred Smart
Contact person
Account Balance Contact hours Mo. – Fr. 08:00 – 12:00
Item Display Contact person for all master data groups X
Account History Save Cancel
T !
Payment
Payment Search
Additional Information | Credit Segment | Disputes
Promise to Pay | Last Interactions | Collection History
AF
DR
Dunning Notice Very high Risk Score
Risk Class 175
Next due Nex due Open Total
Installment Plan Document Crcy Fullfill- Status Date when
Locked due to
Risk of Fraud Acc. with Special Attention date amount amount amount ment broken
Document Search 12344456 01.11.2006 300,00 900,00 1200,00 USD open
250,00 USD Limit 400,00 USD
Exposure 10023456 800,00 900,00 USD broken 04.07.2006
Knowledge Search New York City NY 10035 10020644 0,00 200,00 USD 100% paid
Standard Address
Call List
Duration/Start of Partnership 7 Years 01.01.1998
E-Mail
Age / Date of Birth 36 Years 31.07.1969
Fax Number of Promises broken within last 12 months Go
Letter
Account Overview | Period Balances Sheet | Account Balance | Document Display
Category Number Description Open Amount AmountDue Open Payments Currency Disp. Locks Inst.
Account 5100000160 Fred Smart 2.500,00 250,00 0,00 USD
Business Agreement 510000016001 Agreement 1 1.100,00 30,00 0,00 USD
Contract 510000016001001 Contract 1 800,00 20,00 0,00 USD
No contract 300,00 10,00 0,00 USD
Business Agreement 510000016002 Agreement 2 400,00 150,00 0,00 USD
Back 1| 2 Forward Monday, January 9th 2006 5:43 pm

Extended Collections History
Hierarchical display of collections details
Description Currency Original Amount Still Open
Collection Run, 22.01.2007 EUR 29,50 29,50
Open Item 11310074/0001, due 20.12.2006 EUR 29,50 29,50
Collection Activity: Reminder Call
Reminder call, status: in process
Collection Run, 08.01.2007 EUR 59,60 29,50
Open Item 11310074/0001, due 20.12.2006 EUR 29,50 29,50
Open Item 11300342/0001, due 20.11.2006 EUR 30,10 30,10
Collection Activity: Reminder Letter
Reminder letter, status: printed
Incoming call, 11.01.2007
Promise-to-pay, status: broken EUR 59,60 29,50
Payment 8834590, 15.01.2007 EUR 30,10

Appendix:
Using BRF

Overview: Terminology I
Application
An application is the software component that uses the BRF.
Application Class
An application class is the highest level of organization in BRF.
All BRF customizing components must belong to an application class.
Rule
A rule consists of exactly one expression whose functional result can be
either true or false, and of at least one action to be performed if the
expression is true.
Expression
On the basis of a freely definable (calculation) rule, data of an
application object or data of objects related to the application object (or
indeed any data at all) is processed, delivering a result of any (primitive)
type.

Overview: Terminology II
Action
Any manipulation of any data sets that makes sense from a business
point of view and that can be performed technically.
Actions can be dependent on a expression, in which case it is part of a
rule, or can be specified to execute unconditionally within an event.
An action may or may be part of a rule, but must be specified within an
event in order to be executed.
Event
An event triggers rule processing. More precisely: rules are (usually)
assigned to an event.
Events are typically triggered at suitable points in the application. At
these events, rules that have been assigned through configuration are
then evaluated.
Unconditional actions can also be specified in an event.

Overview – Rules Definition
All data available in the system can be used to Decision Tree

form the basis for the determination of the The expression type of the
appropriate collection step: decision tree is used for the
Creditworthiness derivation of the collection
Data Request
step and the evaluation

Dunning Balance number
Highest Amount of Items within Dunning History All data requested can be
Latest Due Date used in the other expression
Postal Code types (Ranges, Formulas,
Truth Table etc.) to define a
Industry Code conditional step within the
Number of Broken Promise-to-Pay decision tree. The result of
Minimum Days in Arrears each step is either false or
true
…
As target you define within the
decision tree the collection
step
Collection steps are defined as constants:
Collection
Reminder Call
Step
Enforcement Call
Enforcement Workitem
…

Data Request - Examples
Attribute Table Field Aggregation Where-

Condition
Creditworthiness $FKKMAKO BONIT
Dunning Balance $FKKMAKO MSALM
Highest Amount of $FKKMAZE MBETM MAX

Items within Dunning
History
Postal Code FKK_GPSHAD POST_CODE1
Industry Code BUT000 IND_SECTOR
Number of Broken DFKKPP PPSTA COUNT PPSTA = NOT

Promise-to-Pay FULFILLED
Minimum Days in Formula SY-DAT minus LATEST DUE DATE from Items Dunning History ($FKKMAZE-FAEDN with
Arrears aggregation MIN)

Configuring the decision tree (1/3)

Features
The maintenance type determines if
targets can be maintained only on the
end node or on any node. For the
determination of the collection step a
target shall only be maintained on the
end node of a branch.
When setting up the decision tree you

can create new nodes using the
following options:
• Create Node as First Subnode
• Create Node as Last Subnode
• Create Node at Same Level, After
• Create Node at Same Level, In Front
• Delete Node, including Subnodes

Features
Conditions are Boolean Expressions.
From the decision tree you can:
• Select Existing Condition
• Create New Condition
• Remove Condition
• Navigate to Condition
Targets represent the collection steps.

From the decision tree you can:
• Select Target of Same Type
• Select Target of Different Type
• Remove Target
• Create New Target
• Navigate to Target

Configuring the action for the collection step & eval. no.
Features
In this action you can assign the
expression for deriving the
collection step
Features
You can use the existing
expression types to define a pre-
defined valuation number for
prioritizing your worklists.
Additionally you can enhance the
dunning history header table to
cover additional scores such as
payment history, invoice history
etc. which can be used as a value
vector.
Create and Assign Event per Collection Strategy
Features
Within the event the individual
rules are maintained.
If you need additional data which
is not part of the context you can
initialize additionl data for the
context.
Within the event you have to
assign the action for determining
the collection step and the score.
Features
Application class and event then need to be
assigned to the collection strategy.

Copyright 2006 SAP AG. All Rights Reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be
changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.
IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner,
WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBM Corporation.
Oracle is a registered trademark of Oracle Corporation.
UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.
HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C ®, World Wide Web Consortium, Massachusetts Institute of Technology.
Java is a registered trademark of Sun Microsystems, Inc.
JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.
MaxDB is a trademark of MySQL AB, Sweden.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies.
Data contained in this document serves informational purposes only. National product specifications may vary.
The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior
written permission of SAP AG.
This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments,
and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this
document is subject to change and may be changed by SAP at any time without notice.
SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items
contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability,
fitness for a particular purpose, or non-infringement.
SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This
limitation shall not apply in cases of intent or gross negligence.
The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in
these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.

Collections - New Functions in SAP ISU

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Collections - New Functions in SAP ISU

Uploaded by

Copyright:

Available Formats

Collections Management

based on SAP for Utilities –

SAP assumes no responsibility for errors or omissions in this

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

Additional Flexibility in Dunning

Responsible Agents / Teams

Processing of Work Items

Promise-to-pay / Payment Arrangements

Collection History / Success

Appendix: Using BRF

SAP AG 2006, Title of Presentation / Speaker Name / 3

Measuring Collections Success

SAP AG 2006, Title of Presentation / Speaker Name / 4

Dunning Proposal Run

Days in arrears Days in arrears Days in arrears

Amount Amount Amount

Dunning Activity Run

Reminder call Dunning notice

SAP AG 2006, Title of Presentation / Speaker Name / 5

Collection Strategy A (Result of) Previous Collection

IF RISK-CLASS = Formula Date / time

Multiple independent collections

Taking into account absence of

SAP AG 2006, Title of Presentation / Speaker Name / 7

Standard Tasks and Rules

SAP AG 2006, Title of Presentation / Speaker Name / 8

Create new worklists

Release new worklists

Update attributes of a worklists

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

SAP AG 2006, Title of Presentation / Speaker Name / 9

Worklist ID End Date Closed

SAP AG 2006, Title of Presentation / Speaker Name / 10

SAP AG 2006, Title of Presentation / Speaker Name / 11

Interaction Center Lisa Miller

My Collection Work Lists

SAP AG 2006, Title of Presentation / Speaker Name / 12

Interaction Center Lisa Miller

My Collection Work Lists

SAP AG 2006, Title of Presentation / Speaker Name / 13

Collection Open item

If P2P is broken the

Update Credit- Execute custom

SAP AG 2006, Title of Presentation / Speaker Name / 14

P2P-Category Promise to Pay with items Calculate interest

Total Item Amount 146.00 USD

Total Charge Amount 0.00 USD Other Clearing 0.00 USD

Monday, January 9th 2006 5:43 pm

SAP AG 2006, Title of Presentation / Speaker Name / 16

Collection fact sheet

Extended collections history

Action list to support collectors

SAP AG 2006, Title of Presentation / Speaker Name / 17

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

Back 1| 2 Forward Monday, January 9th 2006 5:43 pm

SAP AG 2006, Title of Presentation / Speaker Name / 18

Hierarchical display of collections details

Description Currency Original Amount Still Open

Collection Run, 22.01.2007 EUR 29,50 29,50

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

Collection Activity: Reminder Call

Reminder call, status: in process

Collection Run, 08.01.2007 EUR 59,60 29,50

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