SAP Collections Management

Solution in Detail

Legal Disclaimer

This presentation 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 2009. All rights reserved. / Page 2

Agenda

1.
2.
3.
4.
5.
6.
7.
8.

SAP Collections Management Introduction

Roles and Processes
Process Collection of Receivables
Process Control Collections of Receivables
Process Data Synchronization and Creation of Worklist
Analytics
Deployment Options
Summary

SAP AG 2009. All rights reserved. / Page 3

Financial Supply Chain Management with SAP

SAP Credit
Management

Check
Credit
Worthiness

Issue
Invoice

SAP Biller Direct

(Electronic Bill Presentment and Payment)

Forecast
Cash

Finance
Working
Capital

SAP Dispute
Management

Resolve
Disputes

Order-to-Cash

SAP AG 2009. All rights reserved. / Page 4

Collect
Cash

SAP Collections
Management

Settle
& Pay

Reconcile

What is Collections Management?

Collections Management is an established expression

for customer centric receivables management*
Collections Management supports

Evaluation, identification, stratification and prioritization of

accounts

From a risk management perspective

From a customer relationship perspective

Proactive collection of receivables

Payment reminders

Promise to pay arrangements

Follow-ups

Process optimization and automation for high volumes of

open items

Workforce management

* Definition: Meta Group

SAP AG 2009. All rights reserved. / Page 5

Collections Management
Important Business Issue
Increasingly bad payment behavior

Increasing Days Sales Outstanding (DSO)

No reaction on automatic correspondence like dunning

Financial situation influences customer relationship

Collections Management today is mostly a time-consuming, costly and

cumbersome process

Select and prioritize customers to be collected

Search for account information

High volumes

SAP AG 2009. All rights reserved. / Page 6

What Are the Business Objectives?

Increase share of collected receivables

Reduce Days Sales Outstanding (DSO)

Avoid write-offs

Increase payments on time

Decrease cost of cash collection

Improve Customer Relationship Management

SAP AG 2009. All rights reserved. / Page 7

Retain valuable customers and convert difficult customers by

providing the right interaction in delicate scenarios

Provide complete picture of customer history

Increase customer satisfaction

How Does SAP Collections Management Help?

SAP Collections Management provides collection strategies that allow to select and
prioritize customers for the collection of receivables
Collection strategies are the basis for the automatic creation of daily worklists for collection
specialists.

Worklists ensure evaluation, identification, stratification and prioritization of customers according to collection
strategy
Daily worklists improve user productivity and efficiency

SAP Collections Management offers special collection procedures to document and react
on customer contacts

Promise to pay agreements

Dispute cases (via integration with SAP Dispute Management)
Resubmissions
Customer contacts

Collection managers will find a variety of options to control the collection of receivables

Define and adapt strategies

Maintain collection groups
Workforce management by reassigning worklist items and monitoring degree of worklist processing

SAP AG 2009. All rights reserved. / Page 8

Agenda

1.
2.
3.
4.
5.
6.
7.
8.

SAP Collections Management Introduction

Roles and Processes
Process Collection of Receivables
Process Control Collections of Receivables
Process Data Synchronization and Creation of Worklist
Analytics
Deployment Options
Summary

SAP AG 2009. All rights reserved. / Page 9

Roles and Processes in SAP Collections

Management
2 Roles

Collection Specialist

is responsible for

Collection of
Receivables

Collection Manager

is responsible for

Control Collection of
Receivables

3 Processes
SAP AG 2009. All rights reserved. / Page 10

Data Synchronization
and Creation of Worklist

Two Roles: Collection Manager and Collection

Specialist
Collection Group

Collection Specialist
Collection Manager

Collection Specialist

Main Tasks:

Define or adapt collection strategies

Keep collection groups up-to-date
Adjust business partners
Supervise collection process

Collection Specialist

Main Tasks (are all about

processing the daily worklist):

SAP AG 2009. All rights reserved. / Page 11

Prepare customer contact

Contact customer
Document customer contact

Collection of Receivables Process

Collection Specialist

Prepare
Customer
Contact

Access
Worklist

Get overview of all

worklist entries
Check degree of worklist
processing

SAP AG 2009. All rights reserved. / Page 12

Check valuation of
customer according to
collection strategy
Get overview of
customer account

View past contacts

View past payments

Check resubmissions

Select contact person

Contact
Customer

Create promises to pay

Renew promises
to pay
Create dispute cases
Create resubmissions
Document customer
contact

Control Collection of Receivables Process

Collection Manager

Define
Collection
Strategies*

Create collection
strategies
Adapt collection
strategy
Assign strategy to
collection group(s)

SAP AG 2009. All rights reserved. / Page 13

Adjust
Business
Partner
Master Data

Maintain
Collection
Groups
Assign specialists
to collection groups
Enter substitutes
for specialists
Assign strategy to
group
Assign group to
collection segments

Assign collection
specialists
Temporary
assignments

Supervise
Collection
Process

Check degree of
worklist processing
Allocate worklist
items
Re-assign worklist
items

* No technical expertise necessary

Data Synchronization and Creation of Worklist

Process

Replicate
Customer
Master
Data

Master data
synchronization
Contact persons
Collections
Management
specific data

SAP AG 2009. All rights reserved. / Page 14

Transfer
Data from
Accounts
Receivable

Initial transfer
Periodic transfer
Selected transfer

Create
Worklists

Create worklist
items
Distribute
unassigned items

Monitoring

Monitor master
data
synchronization
Monitor parallel
runs

Agenda

1.
2.
3.
4.
5.
6.
7.
8.

SAP Collections Management Introduction

Roles and Processes
Process Collection of Receivables
Process Control Collections of Receivables
Process Data Synchronization and Creation of Worklist
Analytics
Deployment Options
Summary

SAP AG 2009. All rights reserved. / Page 15

Functionality Supporting the

Collection of Receivables Process

Collection Specialist

Prepare
Customer
Contact

Access
Worklist

Automatically created
Personalization
Search function
Statistics

SAP AG 2009. All rights reserved. / Page 16

Key figures per worklist item

Valuation detail
Due date grid
Invoice overview
Overview of customer account
Overview of past payments
Overview of past contacts
Check resubmissions

Contact
Customer

Promises to pay
Dispute cases
Resubmissions
Customer contact

Collection Worklist
Each collection specialist gets a daily worklist containing all customers who should be contacted.
Customers are valuated and prioritized according to collection rules in a collection strategy.
Detail valuation of customer
per collection rule

Aging of receivables per

selected customer

Assign items

Link to business partner

Refresh worklist
Display completed items

Search for other business partner

Summarizes information concerning

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Customer account in Accounts Receivable

Past collection activities
Credit Management

Main Features of the Collection Worklist

Automatic creation of worklists based on collection

strategies
Summarized information per customer regarding

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Customer account in Accounts Receivable

Past collection activities

Credit Management data

Detailed information per customer about

Valuation according to collection strategy

Aging of the customers receivables (due date grid)

Personalize worklist by setting as default

Search function (view other customer account or

other worklist)

Navigation to business partner master from the worklist

Statistics about degree of worklist processing

Collection Activities
Preparing Customer Contact
View information on the worklist

View customer specific data on the worklist

Check valuation of customer according to collection strategy

View aging of receivables (Due Date Grid)

Navigate to function Process Receivables

All open invoices of customer account with their current status with the option to

View promises to pay per invoice

View dispute cases per invoice

View invoice history

Define various display layouts

Past payments navigation to payment history possible

Open promises to pay navigation to detail view possible

Open dispute cases navigation to detail view possible

Past customer contacts navigation to detail possible

Open resubmissions navigation to detail possible

Customer contact person navigation to all contact persons per customer possible

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Worklist as Starting Point for Customer

Contact
1

Select worklist item and view data

Maximum amount
to be collected

View valuation of customer according to collection strategy

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View aging of customers receivables

Process Receivables Function Main Area

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

Navigation

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Process Receivables Invoices (Open)

On the Invoices tab page the collection specialist gets an overview of all open invoices of a
customer in a collection segment. Per invoice the status is displayed including the amount
invoiced, open amount, disputed amount, amount promised to pay, state of promise etc.

Customer Data

View invoice history

of selected invoice

View promises to pay

per selected invoice

View dispute case(s)

per selected invoice
Customer Contact Person

Display or print
billing document in
PDF format

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Example Printing Invoice in Worklists

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Process Receivables Past Payments

The overview on past payments allows collection specialists to check past payments of the
customer he or she is contacting. The payment history lists all invoices that have been fully or
partially paid by the selected payment.

Payment History for selected payment

All documents related to the

payment are highlighted
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Process Receivables Promise to Pay

The overview on promise to pay shows all promises to pay that were given for the open invoices
displayed on the invoices tab. You can navigate to the details of a selected promise to pay,
change or withdraw a promise to pay.
View promise
to pay

SAP AG 2009. All rights reserved. / Page 25

Change
promise to pay

Withdraw
promise to pay

Process Receivables Dispute Case

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

SAP AG 2009. All rights reserved. / Page 26

View assigned
invoices

Process Receivables Past Customer

Contacts
Past customer contacts include data such as contact date and time, result of contact, contact
person, number of dispute cases and promises to pay created during the contactand the first
line of the note. Navigation to detail information per customer contact is possible.
View
complete
note

View assigned
dispute cases

View assigned
promises to pay

View assigned
resubmissions
First line
of note
Number of
dispute cases

List of dispute
cases per selected
customer contact

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Collection Activities
Documenting Customer Contact
The collection specialist has the following
possibilities to document his or her
collection activities
Create

promises to pay

Create

dispute cases

Create

resubmissions

Document

SAP AG 2009. All rights reserved. / Page 28

the customer contact itself

Promise to Pay Process

Hello Mrs. Brown, did you

recognize that invoice 4711 has
been overdue since 4 weeks?

Hello Mr. McFee, thank

you for reminding me.
We will pay the full
amount by Wednesday
next week.

Collection Specialist
Tom McFee

Accounts Payable Manager

Sue Brown

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

Tom McFee enters promise to pay

in the system
SAP AG 2009. All rights reserved. / Page 29

Promise to Pay in
SAP Collections Management
Customer promises to pay one or several invoices
Collection

specialist creates promise to pay

Creation possible for one or several invoices
Promise is traced on single invoice level

Collection

specialist renews promise to pay

Existing promises can be renewed
Renewed promises get higher promise level

Promises to pay are updated by incoming payments

State

kept if incoming payment equals promised amount

State partially broken if payment amount is smaller than promised amount

Promises that are not kept get state broken

Customers

with broken promises will automatically appear on the worklist if defined

so in the collection strategy

SAP AG 2009. All rights reserved. / Page 30

Create Promise to Pay

The collection specialist can create a promise to pay in the system for the selected invoices.
The total of all open amounts is proposed by the system as promised amount. If the promised
amount is less than the proposed amount, the promised amount can be distributed to the invoices.

SAP AG 2009. All rights reserved. / Page 31

Dispute Cases in SAP Collections Management

Collection specialist can create dispute case for one or several

invoices
System

offers all open items of selected invoices for selection of disputed items
Collection specialist selects disputed items
Collection

specialist enters all required information and saves dispute case

Dispute resolution process can start immediately

Collection specialist can collect disputed amount of dispute cases

where the status is to be collected
If

the outcome of dispute resolution is that the dispute was not justified, the dispute
case gets the status to be collected
Status to be collected is used in collection rule, customer with dispute cases of this
status will appear on the worklist
Status of dispute case is displayed per invoice

SAP AG 2009. All rights reserved. / Page 32

Create Dispute Case

The collection specialist can create a dispute case for the selected invoices. The total of all open
amounts is proposed by the system as disputed amount. The collection specialist can enter all
necessary information such as dispute reason and a note.

SAP AG 2009. All rights reserved. / Page 33

Resubmission
Collection specialists can set a resubmission for a customer. They can enter a note and a
resubmission reason. The customer will re-appear on the worklist at the resubmission date.
It is also possible to suppress a customer from the worklist until the resubmission date.
Create resubmission

Overview of existing resubmission

First line of note

Suppress customer from worklist
until resubmission date

SAP AG 2009. All rights reserved. / Page 34

Create Customer Contact

The collection specialist can document the outcome of the whole customer contact. Dispute
cases, promises to pay and resubmissions created during the contact will be automatically
assigned. A default note is set by the system and can be enhanced by the specialist.
Controls if worklist item remains on
worklist or will be removed

Default note automatically

created by the system

SAP AG 2009. All rights reserved. / Page 35

Agenda

1.
2.
3.
4.
5.
6.
7.
8.

SAP Collections Management Introduction

Roles and Processes
Process Collection of Receivables
Process Control Collections of Receivables
Process Data Synchronization and Creation of Worklist
Analytics
Deployment Options
Summary

SAP AG 2009. All rights reserved. / Page 36

Functionality Supporting the

Control Collection of Receivables Process

Collection Manager

Define
Collection
Strategies

Collection rules
Collection strategy

Adjust
Business
Partner
Master Data

Maintain
Collection
Groups

Collection group

Business partner
Collection profile

Supervise
Collection
Process

SAP AG 2009. All rights reserved. / Page 37

Allocate worklist
items
Control statistics

Collection Rules

Collection rules reflect the reason why a customer is to be contacted. A collection rule
formulates the prerequisites and conditions that a customer in a collection segment must fulfill in
order to receive valuation points. SAP delivers various collection rules in the standard.
Collection rules are listed for each collection strategy.

Prerequisite
(Optional)

Condition

Total of Open Items

Due Since N Days

Risk Class

Examples
Broken Promises to Pay

=
SAP AG 2009. All rights reserved. / Page 38

Collection Rule

Data Sources for Collection Rules

SAP Accounts
Receivable

SAP Dispute
Management

SAP Collections
Management

SAP Credit
Management

SAP 2008
AG 2009.
/ Page
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rights reserved. / Page 39

Open Item Data

Dunning Data
Payment Data
Customer Data

Dispute Case Data

Promise To PayData
Contact Data
Resubmission Data

Risk Class
Credit Limit Utilization

Collection Strategies

Collection strategies comprise company-specific

rules for collecting receivables
Collection strategies have the following purpose

SAP AG 2009. All rights reserved. / Page 40

Determine which customers are to be contacted in Collections

Management (basis for automatic worklist creation)

Prioritize customers on the collection worklist

Define the currency in which the amounts are to be displayed

on the worklist

Determine the time intervals of the aging of receivables per

customer in a segment (due date grid)

Define the type of integration with dunning in Accounts

Receivable Accounting

Determine the influence of the terms of payment on Collections

Management (consideration of cash discounts)

Maintain Collection Strategy

The collection manager decides on the kinds of collection rules customers are to be contacted.
The corresponding collection rules are assigned to the strategy. Per rule the collection manager
enters the relevant parameters and the valuation points a customer receives when he fulfills the
rule.
Determines structure of
Due Date Grid

Enter parameters
of collection rule

SAP AG 2009. All rights reserved. / Page 41

Collection Group Assignment Of Specialists

A collection group consists of collection specialists who are to make contact which customers to
collect receivables. The collection manager defines collection groups in the Collections
Management system. For each specialist it is possible to enter a temporary substitute, for
example, in the case of vacation.

Specialists

Temporary Substitutes

Collection

Group

Collection Specialist
Henry Smith

US East
From 07/18/ to 07/22

Collection Specialist
Tom McFee

SAP AG 2009. All rights reserved. / Page 42

Collection Specialist
Henry Smith

Collection Group and Collection Strategy

All specialists in a collection group collect open receivables with the same collection strategy.
This ensures that the performance of all specialists in a group is comparable. The collection
manager assigns a strategy per group. One strategy can be assigned to several groups.

Define and adjust

strategies

Define and adjust

groups
Collection Manager

Collection Strategy A

Collection
Group
US East

Collection Strategy B

Assign strategies
to groups
Collection
Group
US West

SAP AG 2009. All rights reserved. / Page 43

Collection Segments and Collection Profile

Collection
Group
Europe East

Collection
Segment
Europe

Collection
Group
Europe West

Collection
Profile A
Collection
Segment US

Collection
Group
US East
Collection
Group
US West

SAP 2008
AG 2009.
/ Page
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rights reserved. / Page 44

Business Partner
Business partners in Collections Management have the role Collections Management and are
assigned to a specific collection profile. Collection groups and specialists are assigned. A business
partner is valuated according to the collection strategy of the assigned collection group. The
collection manger can assign a different specialist or a temporary collection group and specialist.
New business partner role

Per collection segment is assigned

Collection group

Collection specialist

Temporary assignments possible

SAP AG 2009. All rights reserved. / Page 45

Supervise Collection Process

Collection Manager
Helen Green

Supervise

Collection Specialist
Henry Smith

Collection Specialist
Tom McFee

Collection Group
US East

Collection Specialist
Caroline Cash

Collection Specialist
Gordon Duffy

Collection Group
US West

Show worklists of all specialists

Show statistics (degree of processing)
Re-assign worklist items
SAP AG 2009. All rights reserved. / Page 46

Allocation of Worklist Items to Collection

Specialists
The collection manager can view all worklist items assigned to his or her collection groups. The worklist items
are allocated automatically to the collection specialists. The collection manager can re-allocate worklist items
among specialist of one group. (Example: A collection specialist will not be able to finish his or her worklist
during the day.)

Worklist items of all collection groups

Reallocation only possible to other

specialists of the same collection group

SAP AG 2009. All rights reserved. / Page 47

Supervise Progress of Worklists Processing

The collection manager can view the worklist statistics of all collection groups he or she is responsible for.
The statistics show the total number of worklist items, the number of open worklist items, the number of
completed worklist items where the contact person was reached and the number of completed worklist items
with an unsuccessful contact.
Number of open
worklist items

SAP AG 2009. All rights reserved. / Page 48

No. of completed
worklist items
where the customer
was reached

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

Total number of
worklist items

Agenda

1.
2.
3.
4.
5.
6.
7.
8.

SAP Collections Management Introduction

Roles and Processes
Process Collection of Receivables
Process Control Collections of Receivables
Process Data Synchronization and Creation of Worklist
Analytics
Deployment Options
Summary

SAP AG 2009. All rights reserved. / Page 49

Functionality Supporting the Data

Synchronization and Creation of Worklist Process

Replicate
Customer
Master
Data

Customer /Vendor
Integration
Create Collections
Management role
Change collection
segment data

SAP AG 2009. All rights reserved. / Page 50

Transfer
Data from
Accounts
Receivable

Initial transfer
Periodic transfer
Selected transfer

Create
Worklists

Create worklist
items
Distribute worklist
items

Monitoring

Monitor master
data
synchronization
Monitor parallel
runs

Process Master Data Synchronization

The creation of worklists requires that customer master data is replicated to business partners.
This replication is performed by the Customer/Vendor Integration (CVI) function as part of the new Master
Data Synchronization cross function.

Leading customer master data

for SAP Collections Management

Customer
Electronics Inc.

Title and names

Search terms
Standard address
Bank details
Company code specific

Business Partner
Electronics Inc.

data

Role General BP
Role CVI: FI Customer

Customer / Vendor
Integration
Accounts Receivable
SAP AG 2009. All rights reserved. / Page 51

SAP Collections Management

Replication of Contact Persons

Contact persons that are maintained in the customer master record are also replicated to business
partners. The business partner created for the customer (here Electronics Inc.) has the relation
has contact person to the business partners that were created for the contact persons.

Relation
Business Partner
Henry Smith
Customer
Electronics Inc.

Contact persons:

Henry Smith

Helen Back

SAP AG 2009. All rights reserved. / Page 52

Business Partner
Electronics Inc.
Business Partner
Helen Back

Business Partner Relation

Has Contact Person

Business Partner
Electronics Inc.
(Customer)

Attributes of relation Has Contact Person

Communication data:
Telephone number
Calling hours
Visiting hours
e-mail address

Address data (in company)

Business Partner
Henry Smith
(Contact Person)

Used by SAP Collections Management

in the collection workist

SAP AG 2009. All rights reserved. / Page 53

Complete Business Partner Master Data

To make business partners available for SAP Collections Management, the following steps are
necessary:

Report: Assign/Change Business

Partner Collection Profile

Create
Collections
Mgmt
business
partner role

Assign
collection
profile

Assign
collection
group
different
to default
group
(optional)

Assign
collection
specialist
(optional)

Report: Change Business

Partner Segment Data

SAP AG 2009. All rights reserved. / Page 54

Create Collections Management Role and

Assign Profile
The Assign/Change Business Partner Collection Profile report creates a collection role and
assigns a collection profile according to the entered select options. Collection segments and
groups are derived according to Customizing. Optionally, the report can be used in conjunction
with a Business Add-In where company specific rules to assign collection profiles can be defined.
Select Options

Result of Report
2 Options for Use

1
2
Target Collection Profile

3
1

Collection role is created

Collection profile is assigned

Collection segments with default

collection groups are assigned

SAP AG 2009. All rights reserved. / Page 55

No specialist assigned yet

Change Business Partner Segment Data

With the Change Business Partner Segment Data report it is possible to assign a collection group
different to the default group and/or to assign collection specialist to the business partner.
Optionally to the entered target group or specialist, a Business Add-In can be implemented to
define company specific rules how to assign groups and / or specialists.
Select Options

Result of Report

Target group and

Specialist (optional)

SAP AG 2009. All rights reserved. / Page 56

Correct collection group

is assigned per Segment

Collection Specialist is
assigned per Segment

Data Transfer from Accounts Receivable

Prerequisite for creating a worklist is to transfer data from Accounts Receivable to Collections
Management. The report Send FI-AR relevant Data to Collections Management only transfers
data of company codes relevant for Collections Management.

Open Items
(reduced fields)

Last Payments

Report:
Send FI-AR relevant
data to Collections
Management

Customer Key
Figures

Accounts Receivable
SAP AG 2009. All rights reserved. / Page 57

Business Partner
Key Mapping

SAP Collections
Management

Types of Data Transfer from Accounts

Receivable
Initial Data Transfer

Transfers data of all company codes that participate in Collections Management (full update).
This type of transfer activates the delta update capability.

Periodic Data Transfer

Only new data and changed data is transferred (delta transfer). This option is used for the
regular data transfers from Accounting.

Data Transfer According to Selection

This type of data transfer is used in exception situations to rebuild selected customers in
Collections Management.
Three types of data transfer

SAP AG 2009. All rights reserved. / Page 58

Creation of Worklist Two Parts

The report to create worklists comprises two parts. In the first part the creation of worklist items
takes place. All business partners that have open items are selected and valuated per collection
segment according to the collection strategy of the assigned collection group. The worklist item
is assigned to the regular specialist. Unassigned worklist items are distributed according to
distribution method.

Distribution of
Unassigned
Worklist Items

Creation of
Worklist Items

Select
Business
Partners

Read
Collection
Segment
Data

Get
Collection
Strategy

Valuate
According
to
Strategy

Store
Worklist
Items*

Distribute
According to
Distribution
Method**

* assigned to regular specialist

** standard method is equal distribution
SAP AG 2009. All rights reserved. / Page 59

Creation of Worklists

Distribution of worklist items if no regular

specialist is assigned to the customer

Parallel processing
possible

SAP AG 2009. All rights reserved. / Page 60

Equal Distribution of Unassigned Worklist

Items
Worklist items
Assigned directly

Worklist items
distributed by
worklist creation

Unassigned
worklist items

47 Worklist items
(Average valuation 76 %)

Collection Specialist
Henry Smith

50 Worklist items
(Average valuation 71 %)

Worklist item 1

98 %

Worklist item 2

95 %

Worklist item 3
Worklist item 5

Worklist item 1

98 %

92 %

Worklist item 2

95 %

88 %

Worklist item 3

92 %

Worklist item 4

89 %

Worklist item 5

87 %

1
Worklist item 4

89 %

Collection Specialist
Tom McFee
Distribution according to following rules:
1
1. Distribute to specialist with lowest number of worklist items
2. If number is equal distribute to specialist with lowest average valuation
SAP AG 2009. All rights reserved. / Page 61

Monitor Parallel Runs

The monitor for parallel runs supports monitoring of the reports to assign/change collection
profiles, creation of worklists and distribution of items to collection specialists. Besides viewing
the log it is also possible to edit runs. (Example: you can delete old worklists.)
1

Select run

Choose relevant program

Edit runs

SAP AG 2009. All rights reserved. / Page 62

Analyze log

Big Picture Interdependencies of Processes

Master Data Synchronization

Create Collection Profile for
New Business Partners

Adjust Business Partner

Segment Data

Define / Adjust Collection Strategies

Collection Manager

Maintain Collection Groups

Collection Manager
Maintain Business Partner Segment Data
Collection Manager
Transfer Data from
Accounts Receivable
Evaluation of Promises to
Pay

Creation of
Worklists

Collection Receivables

Collection Specialist

SAP AG 2009. All rights reserved. / Page 63

Supervise Collection of
Receivables
Collection Manager

Head Offices / Branches

(as of SAP Enhancement Package 4)
Before SAP enhancement package 4 for SAP ERP 6.0 SAP Collections
Management did not take into account any head office / branch relationship data
defined in Accounts Receivables.
As of SAP enhancement package 4 for SAP ERP 6.0 SAP Collections
Management can support collection of outstanding receivables from customers with
head office / branch structures:

Worklist entries are created per branch account

Customer contacts can be done and documented per branch account

Resubmissions per branch account

Visibility of dispute cases per branch account

Visibility of promise-to-pays per branch account

Switch to head office possible

Switch to other branch accounts belonging to the same head office possible

In the standard delivery the branch account is derived from the BSEG-FILKD field,
like in the FI-AR standard. However, with the FDM_COLL_DETERMINE_BRANCH
BAdI you can define your own derivations, which consider, e.g., data from Sales &
Distribution.
SAP AG 2009. All rights reserved. / Page 64

Collection from Head Offices / Branches

Business Challenge
In many companies the transactional accounts payables processing
is centralized:

Supplier invoices are entered, formally checked and posted in a shared service center / a
central entity

Outgoing payments to suppliers are technically carried out by the central entity

However: Verification of the invoice with regard to content and approval for getting paid are
done in local entities / by accounts payable clerks who are assigned to local entities

Example:

A retailer processes the supplier invoices centrally or regionally

However, each outlet has to approve its invoices so that they are paid

Basically, it depends on the outlet if and when an invoice is paid or not

Consequently, the collection specialist at the retailers supplier has to interact with the outlet

Collection of outstanding receivables at customers branches

needs to be supported by SAP Collections Management

SAP AG 2009. All rights reserved. / Page 65

Head Offices / Branches

Existing FI-AR Functionality
In the Accounts Receivables module of SAP ERP there is a head office account / branch
account functionality:

Invoices entered for branch accounts are posted automatically to the head office account
No line items are managed in the branch account
Payments are made from the head office account

Invoice 1800000111 entered for account HMYDEB2, but posted on account HMYDEB1
SAP AG 2009. All rights reserved. / Page 66

Head Offices and Branches on the Worklist

With SAP enhancement package 4 for SAP ERP 6.0, you can distinguish between head offices
and branch accounts on the collection worklist:

Two branch accounts with the same head office,

but different collection specialists assigned to
each branch.

SAP AG 2009. All rights reserved. / Page 67

Here the head office has invoices posted to it

directly

Head Offices and Branches on Process

Receivables
In Process Receivables you can work on one branch account at a time:

You can get a

complete view (only
display) on the head
office and all linked
branch accounts.

You can do everything you are used to do in

Process Receivables. You do this for the branch
account you work on.

SAP AG 2009. All rights reserved. / Page 68

You can drill down to the customer master record

of the head office or the branch account.

Extended View of the Head Office

In the Extended View of the Head Office you can see all invoices of the affiliated branch
accounts and invoices which are directly posted to the head office:

You reach the Extended Head Office view from Process Receivables

Therefore you are in display mode

You can drill down to related promise to pays, dispute cases, customer contact and
resubmissions per branch account

SAP AG 2009. All rights reserved. / Page 69

Agenda

1.
2.
3.
4.
5.
6.
7.
8.

SAP Collections Management Introduction

Roles and Processes
Process Collection of Receivables
Process Control Collections of Receivables
Process Data Synchronization and Creation of Worklist
Analytics
Deployment Options
Summary

SAP AG 2009. All rights reserved. / Page 70

Analytics in SAP Collections Management

(as of SAP Enhancement Package 1)
Analytics for SAP Collections Management enable you to control and optimize
your collection activities
Analytics for SAP Collections Management comprises the following analysis
scenarios:

Analysis of worklists

Analysis of customer contacts

Analysis of invoices and promises to pay

Analysis of open items linked with organizational units of Collections Management

SAP AG 2009. All rights reserved. / Page 71

Analysis of Worklists

Business value:

Measure performance and productivity of collection

groups/collections specialists

Measure effectiveness of collection strategies

Main key figures:

Number of worklist items

Number of completed worklist items

% Completed worklist items

Amount to be collected

Amount processed (including amount promised to pay and

amount disputed)

Main characteristics:

SAP AG 2009. All rights reserved. / Page 72

Collection specialist

Collection group

Collection segment

Collection strategy

Analysis of Worklists Daily Collection

SAP AG 2009. All rights reserved. / Page 73

Analysis of Worklists Daily Collection

SAP AG 2009. All rights reserved. / Page 74

Analysis of Customer Contacts

Business value: Measure performance and productivity of

the collection specialists
Main key figures:

Number of customer contacts

Amount promised during the customer contact
Original disputed amount of dispute cases created during contact
Number of promises to pay created during contact
Number of dispute cases created during contact
Number of resubmissions

Main characteristics:

SAP AG 2009. All rights reserved. / Page 75

Contact date
Contact result
Contact type
Collection group
Collection specialist
Collection segment
Collection strategy
Business partner

Analysis of Invoices and Promises to Pay

Business value: Measure effectiveness of collection

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

Amount promised
Amount paid (referring to promise to pay)
Amount invoiced
Amount paid (of invoice)
Number of invoices
Number of promises to pay
% Kept / % Broken
True DSO
Days in arrears

Main characteristics:

SAP AG 2009. All rights reserved. / Page 76

Promise to pay level / Promise to pay state

Invoice number
Document date
Payment date (of invoice)
Customer

Analysis of Open Items Linked with Organizational

Units of Collections Management
Business value: Due date analysis for organizational units
of SAP Collections Management, ability to plan ahead
Main key figures:

Overdue for more than 90 days

Overdue from 61 to 90 days
Overdue from 31 to 60 days
Overdue from 1 to 30 days
Due within 30 days
Due within 30 to 61 days
Due within 61 to 90 days
Due within more than 90 days

Main characteristics:

SAP AG 2009. All rights reserved. / Page 77

Collection segment
Collection group
Collection specialist
Business partner

Due Date Analysis

SAP AG 2009. All rights reserved. / Page 78

Agenda

1.
2.
3.
4.
5.
6.
7.
8.

SAP Collections Management Introduction

Roles and Processes
Process Collection of Receivables
Process Control Collections of Receivables
Process Data Synchronization and Creation of Worklist
Analytics
Deployment Options
Summary

SAP AG 2009. All rights reserved. / Page 79

Deployment Scenarios

SAP Collections Management 6.0 can be set up in

two different ways

One-System Scenario

Accounts Receivables Accounting in SAP ERP 6.0

Two-System Scenario

SAP AG 2009. All rights reserved. / Page 80

Accounts Receivable Accounting in SAP ERP 6.0

Accounts Receivable Accounting in SAP ERP 2004

Accounts Receivable Accounting in SAP R/3 Enterprise 4.7

Deployment for SAP R/3 Enterprise 4.7

SAP R/3 Enterprise

4.7

SAP Collections
Management
6.0*
ALE
SAP ECC 6.0

SAP Web AS 6.20

SAP Netweaver 2004s

Accounts Receivable System

Collections Management System

*SAP ECC 6.0 already comprises Financial Basis 6.0

SAP AG 2009. All rights reserved. / Page 81

Deployment for SAP ERP 2004

SAP Collections
Management
6.0*

SAP ECC 5.0

ALE

SAP ECC 6.0

SAP Netweaver 04

SAP Netweaver 2004s

Accounts Receivable System

Collections Management System

*SAP ECC 6.0 already comprises Financial Basis 6.0

SAP AG 2009. All rights reserved. / Page 82

Deployment for SAP ERP 6.0 (One System)

SAP ECC 6.0*

SAP Collections
Management
6.0*

SAP Netweaver 2004s

*SAP ECC 6.0 already comprises Financial Basis 6.0

SAP AG 2009. All rights reserved. / Page 83

Deployment for SAP ERP 6.0 (Two Systems)

SAP ECC 6.0

ALE

SAP Netweaver
2004s

Accounts Receivable System

SAP Collections
Management
6.0

SAP Netweaver 2004s

Collections Management System

**XI can be used for master data distribution optionally

SAP AG 2009. All rights reserved. / Page 84

Agenda

1.
2.
3.
4.
5.
6.
7.
8.

SAP Collections Management Introduction

Roles and Processes
Process Collection of Receivables
Process Control Collections of Receivables
Process Data Synchronization and Creation of Worklist
Analytics
Deployment Options
Summary

SAP AG 2009. All rights reserved. / Page 85

SAP Collections Management Business

Benefits

Safeguard liquidity
Increase on time payments
Reduce Days Sales Outstanding (DSO)
Reduce write-offs

Increase collection specialist efficiency and decrease cost

of customer centric receivables management
Automatic worklists containing prioritized customers

SAP AG 2009. All rights reserved. / Page 86

Summarize all relevant information and necessary

activities for collection of receivables in one
application

Ensure execution of company specific collection

strategies

Element of holistic customer relationship management

Decrease reliance on and risk of third party debt

collectors

SAP Collections Management Summary

Challenges

Inconsistent account prioritization

Labor intensive and long cycle times

Inconsistent collection strategies

High costs of collections

Increase bad debt risk

Functionality

Benefits

Rules-based collections strategies

Improved collections rates

Prioritization via worklists

Reduced bad debt expense

All relevant information at a glance

Proactive targeting of late pays

Streamline collections and reduce

operating costs

Reduce DSOs

SAP 2007 / Page 87

Further Information

SAP Public Web

http://www.sap.com/fscm

SAP Service Marketplace

(log-on required)

https://service.sap.com/fscm

Documentation on SAP Help Portal

http://help.sap.com
(SAP ERP >> SAP ERP Central Component >> SAP ERP EHPs)

Training / SAP Education

http://www.sap.com/education

User Groups

http://www.asug.com

http://www.dsag.de

http://www.sap.com/communities/usergroups.epx for more

Contact

Your SAP Account and Consulting Engagement Manager

SAP AG 2009. All rights reserved. / Page 88

Copyright 2009 SAP AG

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