Advanced Collections Workshop v1.1

Business Process Workshop
Advanced Collections
Consultant Name
Designation
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal
Fusion Advanced Collections
1 Introduction
2 Features & Benefits

3 Scoring and Strategy Management
4
Dunning and Customer Correspondence
5 Collection Dashboard
6
Process Collections Adjustments
7
Process Collections Disputes
8 Manage Promise To Pay
9
Process Collections Payments
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 3

Introduction
Allows to bridge the gap between back-office transactional data and front-office
customer management processes, Improving agent’s productivity and collection results.
Streamlined processes apply the right collections strategy to the right customer to help
business collect more money faster and with less effort.
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal 4
Introduction
Increase Collections Success

To efficiently manage your collections efforts, collections scoring and strategies can be
configured to run at the customer, account, bill-to, or delinquency levels. Configurable
dunning plans are also available.
Streamline the Collections Process
Numerous features facilitate a smooth and efficient collections process. For example,
agents can create "Mass Promises" for groups of invoices.
Increase Collections Effectiveness
The Collections Dashboard automatically assigns collections work with summary
information to help prioritize and update related activities for each delinquent customer
.
Introduction
Better Visibility of Customer Information

Automatically track and push data on delinquencies, broken promises, assigned tasks,
and strategy-related actions and delivers it to the appropriate collections agent. The
Customer Work Area provides summary and detail customer account information,
giving you complete visibility to transactions, correspondence, payments, disputes and
adjustments; notes written during previous collections activities; even aging data and
customer contacts – all in a single location..
Manage Disputes and Adjustments More Efficiently
Fusion Advanced Collections makes it easy to manage disputes at any level of
granularity . You can drill-down to invoice line details to capture more information on
the disputed amount. Integration with Fusion Receivables ensures that all stakeholders
across the credit to cash process are using a single source of information.
Introduction
Improve Accuracy with Integrated Customer Payment Processing

Oracle Fusion Advanced Collections reduces data entry errors by instantly validating
customer credit card or bank account information used to process customer payments.
Once the payment information is captured, your customer’s payment instantly updates
Oracle Fusion Receivables for receipt processing.
Send Dunning Notices for Faster Payment Approval
With Fusion Advanced Collections you can automatically send a dunning letter to one or
more individuals using their preferred mailing method (e-mail, fax, or hard copy) to
speed up the payment process and keep key stakeholders in the loop.
Introduction
1 Introduction

4 Dunning and Customer Correspondence
6 Process Collections Adjustments
7 Process Collections Disputes
9 Process Collections Payments 9
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Introduction
Better Visibility of Customer Information

Automatically track and push data on delinquencies, broken promises, assigned tasks,
and strategy-related actions and delivers it to the appropriate collections agent. The
Customer Work Area provides summary and detail customer account information,
giving you complete visibility to transactions, correspondence, payments, disputes and
adjustments; notes written during previous collections activities; even aging data and
customer contacts – all in a single location..
Manage Disputes and Adjustments More Efficiently
Fusion Advanced Collections makes it easy to manage disputes at any level of
granularity . You can drill-down to invoice line details to capture more information on
the disputed amount. Integration with Fusion Receivables ensures that all stakeholders
across the credit to cash process are using a single source of information.
Features & Benefits
1 Strategy Management
Strategy Management can build a series of tasks to help ensure timely collections of
overdue customers. These tasks can be manual or automated and can be customized
to suit business needs. Business can build strategies based on the customer score and
assign them accordingly. NOTE: Either strategies or simple dunning for each business
unit can be used.
2 Collections Dashboard
The Collections Dashboard displays a summarized and unified set of information that
allows for more efficient use of your collector’s time.
Features & Benefits
3 Customer Correspondence
Business can configure aged or staged dunning, correspondence settings, dunning
template assignments, and the timing of the execution. Business can send a dunning
letter to one or more individuals using the mailing methods of e-mail, fax, or hard
copy. Dunning history can be viewed.
4 Process Collections Adjustments , Disputes and Promise

Streamlined dispute , promise to pay and adjustment management (via automatic
credit memo process from Oracle Fusion AR) speeds the entire collections
management process, reduces outstanding balances and improves customer
satisfaction. As the collectors are talking to the customer contact, they are able to
quickly process a dispute or adjustment request. And they are able to review the
history of what’s been done with specific transactions, along with visibility to the line
level details of the transaction.
Features & Benefits
5 Process Payment
Integrated customer payment processing (via integration with Oracle Fusion Payments
and Oracle Fusion AR) speeds payment authorization and cash flow while it reduces
errors in data entry. As collectors are talking to the customer contact, they are able to
quickly take a payment.
Infolets
• Advanced Collections metrics provide the ability to measure and view the performance of the collections
organization at various levels.
• It uses industry standard formulas to measure and calculate these metrics. The metrics are also tracked
historically.
• There are 22 metrics:
• Promise Metrics: Promise Count, Promise Amount, Broken Promise Count, Broken Promise
Amount, Broken Promise Percent, Broken Promised Amount Percent.
• Sales Outstanding Metrics: Days Sales Outstanding (DSO), Best DSO, Sales Weighted DSO,
True DSO, Average Days Delinquent.
• Balance and Efficiency Metrics: Beginning Balance, Ending Balance, Credit Sales, Current
Receivables, Percent Current, Over 90 Days Delinquent, Percent Over 90 Days Delinquent, Collections
Efficiency Index, Weighted Average Terms, Weighted Average Days Late, Weighted Average Days Paid.
Metrics
1 Introduction
9 Process Collections Payments

16

Scoring and Strategy Management
Scoring
Scoring process helps a company determine which customers the company should
target in order to maximize profit.
Company evaluate past data to learn customers' purchasing , spending , paying pattern
etc. Based on which company devise strategies to rate their customer and forecast cash
flows.
In Fusion past data of customer can be collected using
- Configurable Data Points
- Scoring formulas
Scoring
Configurable Data Points

A data point is a measured quantity or attribute of a customer. It can be created from
any data stored in the Fusion database. Data points for collections typically measure
some form of “collectability.” For example, the rate of delinquency or the age of
delinquencies. Data points may be simple select statements or complex SQL functions.
Configurable scoring formulas
Allows you to build custom “formulas” based on multiple data points for customers,
accounts and sites. A formula can have multiple weighted data point that are added
together and result in a score. The resulting score is stored in the system and is
displayed on the customer work area.
Scoring
Scoring
Scoring
Collections Scoring program
Score collections customers by running the Collections Scoring
Collections Scoring program
A customer with a high ratio of late delinquencies will receive a lower score. The greater
the amount overdue and the older the amount overdue drives the score lower.
Strategy Management
Oracle Fusion Advanced Collections policy / strategies are a series of manual or

automated activities(Task) , collectors’ perform to collect delinquency.
Examples of tasks include:
Calling the customer to collect
Sending a letter, fax, or E-mail
Escalating to a supervisor
Strategy Management
Strategy Group
Define your own strategy group
Configurable Strategies
Add strategies into the strategy group
Assigned score to apply appropriate strategies to customer
Strategy Management Program
Schedule to run automatically and apply strategies to customer
Strategy Management
Strategy Management
Assigns strategy to customer based on assigned business level.
Strategy Management
Strategy Management
On completing the task follow-up Collector completes

the task with a note
1 Introduction

31

Send a dunning letter to one or more individuals using their preferred mailing method
to speed up the payment process and keep key stakeholders
in the loop. Simplified dunning setup makes customer send correspondence
quickly
The process can be set up to run automatically or be initiated by collections agent.
Delivery Options for Dunning Letters

Delivery of dunning letters to customer is:
E-Mail
Fax
Regular mail
Customer Correspondence
Provides preconfigured dunning letters
Fusion Advanced Collections provides pre-configured dunning letters that
can be used in pre- production environments and, if appropriate, in
production systems. Soft, medium, hard, final demand. Dunning output is
generated by the Business Intellgence Publisher tool. Emailed dunning
letters are sent as an attached PDF file
Configurable dunning setup

Supports Aged and Staged Dunning methods. Dunning letters can be
configured to include current transactions, credit memos and disputed
invoices. the ability to use different letters in different business units to
comply with cultural, regional or regulatory requirements.A dunning letter
can be sent to one or more customer contacts

Ability to send dunning letters

Send or resend to more than one contact. Different send methods: Mail, Fax,
E-Mail
Ability to view sent dunning letters
Collectors can view information on previously sent dunning letters on the
Correspondence tab in the Customer Work Area and include or exclude
customers from future dunning processes via a checkbox on the Profile tab
Collectors can resend letters as needed to selected contacts
Dunning history displayed on Customer Correspondence Tab

Ability to Include/Exclude
Customer from Dunning
• Collector clicks on Send
Dunning Letters checkbox to
include or exclude from
dunning
• Selected Collections Business
Level determines at which
level dunning is sent
• Preferred Contact Methods
are Print, Fax, E-Mail


Dunning Methods
Aged Method:
Used by companies sending collection letters to their customers, based on the
oldest aged transaction. Delinquent transactions are identified automatically
when the Delinquency Identification concurrent process is run. Preconfigured
dunning notice templates are available, or the deploying company can create
their own dunning notice templates. As the oldest aged transaction moves into
the next aging bucket, the content of the dunning letter can change. A single
consolidated letter can be sent to eliminate sending multiple aged dunning letters
to the same customer who has more than one delinquent transaction. The
templates are associated to aging buckets in the dunning configuration process
.

Dunning Methods
Aged Method
Dunning Methods
Staged Method:
Based on the number of days since the last dunning letter was sent, rather than
the number of days transactions are past due. Delinquent transactions are
identified automatically when the Delinquency Identification concurrent process
is run. In cases where transactions have installment due dates, the staged
dunning letter includes each overdue installment date in the body of the letter.
Staged dunning letters are sent at delayed intervals defined in the Dunning
Configuration process. These intervals control the timing of each letter sent.
.

Dunning Methods
Send Dunning Letters
Submit “Send Dunning Letters” Job to send letters to customers.
Send Dunning Letters
This example shows the result of using a pre-congfigured dunning letter that
has been sent to a customer

1 Introduction

45

Collections Dashboard
The Collections Dashboard helps each collector organize and track the work that has
been assigned to them. The Dashboard is automatically populated with summary data
about delinquent customers and activities assigned to the collector. It pushes work to
the place where they can organize and prioritize by collectors as they need.
The Dashboard is comprised of 5 areas:
1 Delinquent Customers list:
Collectors view the customers with over due bills for whom they are responsible for
working with
Work Status Feature
Used by collectors to further organize their work on the Dashboard.
Newly identified delinquent customers are always marked
Work Status = “Open”
Work Status Date = “when process was run”
User can update Work Status
Open: displays date work was identified as delinquent
Follow-up and Ignore: defaults date that can be updated by user to not exceed
the defaulted date set in Collections setup
Hold maintains the date work was identified delinquent
2 Activities list
It serves as a real-time “to do list” by displaying follow up activities related to a collector’s delinquent
customers. Tasks assigned to collectors such as follow up calls to dunning letters that were sent, or
payment dispute requests that have been rejected, are displayed on this list
3 Customer Search
Is a simple search tool where Business can search for customer, by customer name account or bill-to. It
also allows collectors to create unique lists of customers, based on search parameters and then save
them for later use. These lists can be used for special projects such as end of period calls, or contacting
customers with high or low balances.
4 Notification
Alerts and approvals are displayed on the Notification pop-up. This is useful for collectors to track work
such as rejected disputes that require follow-up actions.
Delinquent Customers List

Work Status
Notification
1 Introduction

54

Process Collections Adjustments
Process Collection Adjustments
Customers often pay late due relating to billing errors, shipping problems, service
Issues , or sales terms. They ask for an adjustment to a bill before paying the balance.
Managing these adjustment requests is time – consuming , delay in receipt of money.
Fusion Advanced Collections makes it easy to manage information relating to
Customers ’ adjustment requests can also be managed easily
Before a new adjustment request is submitted for approval, collection agents can see a
complete history of any previously requested, rejected and approved adjustments

Create New and Edit

Icons
• Create new or edit existing adjustment will open pop-up

Adjustment
Adjustme history appears here

1 Introduction

61

Process Collections Disputes
Process Collection Disputes
Fusion Collections streamlines the dispute management process for collectors and their
customers with an intuitive dispute creation screen. Agent reviews customer delinquent
information and the customer indicating an issue with a transaction(s) which are being
disputed for various reason(s). The agent will enter the information and submit if for
approval. Approval will automatically create a credit memo and apply it to the
associated transaction.

• Enables collectors to quickly capture important dispute information so that
subsequent review and resolution can be managed easily
• Direct integration with Oracle Receivables , the dispute request is routed to
the appropriate user for review and approval – expediting resolution and
ultimate payment
• Configurable and Automated approval routing to the appropriate user for
review and approval
• Ability to attach dispute related information (text, URL, file) as supporting
information used to review and approve the dispute

Dispute User Interface
Dispute Section selection determines if amount defaults or is user entered

Sample Notification Worklist
• Approving person will receive notification of pending dispute

• Depending on amount disputed, additional approvers may be required
Sample Notification Worklist
1 Introduction

69

Manage Customer’ Promise to Pay
Manage Promise to Pay
Allows to record a verbal commitment from a customer to pay a certain amount

by a certain date .Track delinquent customers commitment for future payment.
A customer can make a promise on one or more delinquent transactions.
The system automatically reconciles those promises that are kept and those that
are broken. A report provides statistics enabling management to better understand
their customers, collectors and paying habits.

• Tracks Commitment for future payment.

Provides agent with a tool to negotiate with customer for payment and increases
accuracy of cash flow forecast
• Automatically reconciles Promises
A scheduled job called Promise reconciliation automatically will reconcile the promises
• Provides Information for Management follow up
Automatically identifies promises that are kept and broken allowing for analysis on
customers paying habits as it relates to promises. Promise reconciliation report allows
the manager and collector understand how the collector is performing by reporting on
promises kept and broken.
Promise Reconciliation: Analyzes payment received and attempts to match them to

promises made.
Promise Reconciliation Report: Report based on payment received and promise status.
Promise Reconciliation Report
1 Introduction
8 Promise To Pay

77

Once the payment information is captured in collectors’ workbench , customer’s

payment instantly updates Oracle Fusion Receivables for receipt processing there by
speeds the collections process resulting in improved cash flow
79 Copyright © 2011, Oracle

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and Confidential
• Receive customer payments by credit card or from customer bank accounts

• Multi-currency payments allows the collector to process a payment using the
customer’s preferred payment currency that is converted to the transactional
currency.
80 Copyright © 2011, Oracle

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and Confidential

Manage Payments Screen

Transaction Activity Tab: Once the payment is successfully submitted the user can see the results against the
transaction by viewing the activity tab in the details area.
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Business Process Workshop

2 Features & Benefits

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 3

Fusion Advanced Collections

Increase Collections Success

Better Visibility of Customer Information

Improve Accuracy with Integrated Customer Payment Processing

2 Features & Benefits

4 Dunning and Customer Correspondence

7 Process Collections Disputes

8 Manage Promise To Pay

9 Process Collections Payments 9

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Better Visibility of Customer Information

4 Process Collections Adjustments , Disputes and Promise

2 Features & Benefits

3 Scoring and Strategy Management

4 Dunning and Customer Correspondence

6 Process Collections Adjustments

7 Process Collections Disputes

8 Manage Promise To Pay

9 Process Collections Payments

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Configurable Data Points

Oracle Fusion Advanced Collections policy / strategies are a series of manual or

On completing the task follow-up Collector completes

2 Features & Benefits

3 Scoring and Strategy Management

4 Dunning and Customer Correspondence

6 Process Collections Adjustments

7 Process Collections Disputes

8 Manage Promise To Pay

9 Process Collections Payments

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

The process can be set up to run automatically or be initiated by collections agent.

Delivery Options for Dunning Letters

Configurable dunning setup

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Ability to send dunning letters

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 11

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 9

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 10

2 Features & Benefits

3 Scoring and Strategy Management

4 Dunning and Customer Correspondence

6 Process Collections Adjustments

7 Process Collections Disputes

8 Manage Promise To Pay

9 Process Collections Payments

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

2 Features & Benefits

3 Scoring and Strategy Management

4 Dunning and Customer Correspondence

6 Process Collections Adjustments

7 Process Collections Disputes

8 Manage Promise To Pay

9 Process Collections Payments

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |