Co

mySAP ERP Financials
Financial Supply Chain

Management (FSCM)
Peter Voss
SAP (UK) Ltd
Peter.Voss@sap.com
Agenda
Today‘s Business Issues
FSCM Components
Summary & Roadmap

Transaction Processing Time in the New Economy
1960s 2001
Order 4 - 7 days Today
Delivery 14 - 21 days Next day
Invoice 4 - 7 days Same day
Payment 45 - 60 days 45 - 60 days
Source:Killen&Associates, Inc., 2001
 SAP AG 2004, Title of Presentation / Speaker Name / 3

The Challenge In Finance
How can we integrate finance and day-to-day

operations?
How can we accelerate settlement processes
with our customers?
How can we systematically improve our control
over cash flow?
What can we do to reduce the cost of finance in
our company?
How can we get a high and fast return on our
investments?

Cashflow Cycle
Order Delivery Sale & Cash collection
placed & Invoice Invoice of receivables
Days In Days Sales
Inventory Outstanding
time
Days In Payables Days In Receivables

(average time to (average customer
payment of supplier) Cash payment payment time)
Due Date
for inventory
Cashflow Cycle
Overview O2C
Order-to-Cash Process
Cash Coll. Settle-

Credit
Billing & Dispute ment &
Evaluation
Resolution Payment
Creation of
“A sale is a gift - Invoice “Average delay in
until it is paid for" - printing
- put in envelope
payments for
Year 2003: ca. 270.000 - postage Western Europe 15
bankruptcies in Western days”
Europe Cost saving potential:
0,55 – 3 € per invoice
Source: Source D&B
Source: Creditreform Source: Beweco
FSCM: Business Process Flexibility
Order-to-Cash Process
Cash Coll. Settle-

Credit
Billing & Dispute ment &
Evaluation
Resolution Payment
SAP NetWeaver
Electronic
Credit Coll. & Dispute
Bill Present- Mgmt
Mgmt
ment

Indicators Of An Inefficient Financial Supply Chain
High DSO (Days Sales Outstanding)

High number of paper invoices
High cost of invoicing and reconciliation (resources,
time, etc.)
High percentage of disputed invoices
High number of days to reconcile a disputed invoice
Large amount of uncollectible receivables
Processes and systems not integrated with business
partners
Difficulty in predicting cash flow
se e!
l ea igat
P st
ve
In

Agenda
FSCM Components
Summary & Roadmap

Financial Supply Chain Management
Financial Supply Chain Management (FSCM) is an

integrated approach to provide better visibility and
control over ALL cash-related processes.
Better predictability of cash flow

Reduction of working capital
Reduction of operating expenses
End-to-end integration of business processes

mySAP Financials Solution Map
Stakeholder
Strategic Enterprise Performance Strategic Planning &
Relationship Strategy Management Business Consolidation
Management Measurement Simulation
Management
Customer Relationship Product Lifecycle

Business Analytics Financial Analytics Workforce Analytics Supply Chain Analytics
Analytics Analytics
Fast Close & Financial

Accounting Financial Accounting Management Accounting Corporate Governance
Statements
Electronic Bill
Financial Supply Chain Credit Collections Dispute Cash & Liquidity Treasury & Risk
Presentment & In-House Cash
Management Management Management Management Management Management
Payment
Corporate Services Real Estate Management Travel Management Incentive & Commission Management
Financial Portal
Manager Self-Service Employee Self Service
Solutions
Issue Finance
Evaluate Forecast Resolve Collect Settle
Working Reconcile
Credit Invoice Cash Disputes Cash & Pay
Capital

FSCM Components
SAP Credit Management
SAP Biller Direct
SAP Collections Management
SAP Dispute Management

Check Finance
Issue Forecast Resolve Collect Settle
Credit Working Reconcile
Invoice Cash Capital Disputes Cash & Pay
Worthiness
SAP Financial Supply Chain Management

Electronic Bill
Payment
SAP CREDIT MANAGEMENT

Increase the financial visibility of your customer base:
Automate Credit Decisions & Track credit applications

Implement a company wide credit policy
Control your customer’s credit exposure
Optimize terms for your customers
Reduce amount of bad or doubtful debt
Functional Overview
Credit Limit Management

Manage a customer credit profile
Central credit management in a distributed system landscape
Credit Case
Credit case for structured processing of credit limit applications
Track status and result of credit limit applications
Credit Rules Engine

Categorize customers by scoring rules
Automatically calculate and assign a customer-specific credit limit
Credit check rules
Credit Information
Input parameters for scoring rules
Interface to external credit agencies
Credit Manager Portal

BW Content
Role-based access to credit management information and analysis
Comparison R/3 Credit Mgmt <-> SAP Credit Mgmt.
R/3 Credit Management SAP Credit Management
Master Data FI-AR Account SAP Business Partner

FI Data FI-AR FI-AR, FI-CA, others
Monitor Credit Exposure Only for simple system- Distributed system-

landscape (1xFI, 1xSD) landscape (multiple FI,
SD and CRM systems)
Customer Scoring/Rating Not available Credit Rules Engine

External Credit Information Only through partner any XML based credit
(e.g. D&B) products information service
Rule based definition of
credit limits Not available Credit Rules Engine
Workflow Create Workflow for any

Only in SD
Credit Event
Customer fact sheet Credit Manager Portal
Analysis (incl. BW Content) and
OLTP reporting
Connectivity for non SAP- Not available XI Server

systems
Business Partner – Credit Profile

Credit Rules Engine – Example Credit Limit
1.
1. Credit
Credit Rules
Rules Engine
Engine
calculates
calculates internal
internal
customer
customer scoring
scoring SS Sales Dunning Financials
Dunnings M
2.
2. Credit
Credit Rules
Rules Engine
Engine
calculates
calculates Credit
Credit Limit
Limit LL Sales Volume V Average Delay in Payments P
Credit Information
Int. Scoring S
Ext. Credit Credit Scoring A
Information
Credit Rules Credit Limit
Provider A
Engine Management
Ext. Credit Credit Scoring B Credit Limit L

Information
Provider B 1. 2.
S (Score) = A + B – 10*M – P
L (Credit Limit) = 0,01 * S * 2 * V

SAP Credit Management Formula Editor
Decisions in
different levels
Formula Text
Set of possible
Functions
Set of possible
Variables
Yes or No
Decisions
Credit Eventing
Credit Management Credit Events
Credit limit exceeded

Credit Credit Credit master data changed
Limit Limit SAP Workflow Scoring changed
Management Control
Credit limit changed
Ext. rating changed
master data credit limit

changed check
Follow-up Activities
Credit Eventing
Trigger int. workflow
e.g. call customer
e.g. request cash/ down
payment
Trigger ext. applications

Application Lock customer account
Billing FI
(e.g. CRM, SD) Disable service
Create bill

Credit Limit Management – Summary & Benefits
Functions
Credit Limit
Management Manage the credit profile of a customer
Monitor credit exposure / limit
Rules Engine for implementing own scoring and
Aler Alert limit rules
t
Credit Limit Scalable platform for use in B2B and B2C
Scenarios
Scoring & Credit Evaluation of Customers
Credit
Exposure
January March Business Benefit

February April
Reduce processing costs by automating credit
decisions
Early identification of default risk
DEMO Track status of the application
Real time credit limit check gurantees consitent
credit decisions
FSCM Components
SAP Biller Direct

SAP Biller Direct
Check Finance
Issue Forecast Resolve Collect Settle
Credit Working Reconcile
Invoice Cash Disputes Cash & Pay
Worthiness Capital

Electronic Bill
Payment
SAP BILLER DIRECT

Supplement traditional billing procedures:
Electronic invoicing for businesses

Electronic payment for customers
Integrate customer service with finance

EBPP vs. EIPP
Electronic Bill Presentment and Payment (EBPP) refers to

Business-to-Consumer (B2C) transactions
Electronic Invoice Presentment and Payment (EIPP) refers to

Business-to-Business (B2B) transactions
Both refer to a system which allows for the display of invoices

via the Internet and the electronic receipt of payment.
SAP’s solution addresses both the B2B and B2C requirements

And why is EBPP important?
Reduce billing transaction costs

costs per invoice sent via post: up to $15*
cost savings for invoices sent over the Internet: up to 70% for biller**
Improve your cash flow (reduced float/reduced days sale outstanding)

and cash forecasting accuracy
Enable non-EDI customers to trade electronically
Obtain a competitive advantage by attractive service offering
Reduce your call center usage/cost
Use one-to-one marketing capabilities
Allow internal sales force to view their customer data

* source: Datamonitor 1999
** source: Ovum
*** source: Forrester Research

SAP Biller Direct - Functions
Customer can check his account

Bill overview and bill details
Display bills
Credit overview
Account balance (bill and payment history)
Payment via credit card or direct debit
Partial payment
Down-load functionality (CSV, XML)
Offset credit with open items
Assign open items
Change master data
Integration into mySAP Financials (Dispute & Cash Management
E-mail notification
Flexible layout (Java Server Pages)
List of Open Bills
Customers can
see all of their
bills and credit
notes in the
Internet.
They can display
the documents
as PDF or XML
They can
download bill
data as PDF or
CSV
They can select
various payment
methods

Creation of Payment Advices
Customers can
assign payments
to invoices in and
send payment
advice notes to
the biller
The assigned
items can be
changed up until
the point when
the biller’s
accounting clerk
has processed
them
The responsible
accounting clerk
can access the
payment advice
notes from his
SAP inbox

Display balances and Line Items
Customers can
view balance and
line item infor-
mation from FI-
AR (transaction
FD11)
Download is
possible in CSV
or Excel format
Access is to a
monthly sum-
marization and is
separated accor-
ding to receivab-
les and payments

Balance Confirmation
Customers can
(not) confirm
total balances
They can give no
reply or specify
reasons why they
cannot process
the balance
confirmation
They can either
print the list or
download it in
Excel or CSV
format.
The returned
balance compa-
rison appears in
the inbox of the
accounting clerk
assigned in the
SAP system.

Integration With SAP Dispute Management
Customers can
create dispute
cases for both
partial payments
or the entire
invoice
They can select a
reason
An initial note for
the dispute
department can
be entered
They can select a
contact person
out of the
customer contact
list

Master Data
Customers can
display and
change their
address, bank or
credit card data
They can grant or
withdraw
automatic debit
authorizations
They can modify
their notification
preferences

Business Benefits
Lower cost of billing with no printing and postal charges

Efficient processing of payments and exceptions including
better explanation of payment deductions
More precise cash management and improved liquidity
planning
Data integration with accounts receivable, accounts payable,
cash management and dispute management
Better customer retention and opportunities for one-to-one
marketing
Productivity gain for A/R and A/P departments
Fewer accounting and settlement errors
Immediate access to invoice copies
No changes of existing business processes

FSCM Components
SAP Biller Direct

Issue Finance
Working Reconcile
Capital

Electronic Bill
Payment
SAP COLLECTIONS MANAGEMENT
Establish a customer centric receivables management
Evaluate, identify and prioritize accounts

Collect receivables proactively
Collaborate with external and internal business partners

Functional Overview
Worklist for collection agents

Criteria to select and prioritize customer accounts
Direct access to customer account from worklist
New functions to process and view open receivables

All open invoices and their status at a glance
Invoice history
Actions for one or several invoices can be directly taken
Tight integration with SAP Accounts Receivable
New collection procedure

Promise to pay agreements
Automatic integration with payments and clearing postings
Integrated with SAP Dispute Management 3.0*

Create and view dispute cases from SAP Collections Management
*not supported for SAP R/3 4.6c

Collection Process
1 2 3 4
Process
Select Prioritize Prepare
Receivables
Customer Customer Customer
per Customer
Accounts Accounts Contact
Account
Selection by • Prioritize by • Prepare by • Process account by

• Company code • Total open amount • Sorting invoices • Creating promises to pay
• Account no. • Amount due today • Filtering invoices • Renewing promises
• Accounting clerk • Amount promised • Viewing history • Creating dispute cases
• Sales area • Amount broken pr. • Viewing broken • …
• Total open amount • Amount dunned promises
• ... • … • Assigning contact
• …

Collections
CollectionsManagement
Management
Example
Example

Business Benefits
Increase share of collected receivables
Reduce DSO
Avoid write-offs
Increase payments on time
Decrease cost of cash collection
Retain valuable customers and convert difficult customers by

providing the right interaction in delicate scenarios
Provide complete picture of customer history
Improve Customer Relationship Management and increase

customer satisfaction

FSCM Components
SAP Biller Direct

Issue Finance
Working Reconcile
Capital

Electronic Bill
Payment
SAP DISPUTE MANAGEMENT

Reduce Days Sales Outstanding and increase customer
profitability
Identify issues and disputes earlier in the payment cycle

Track and monitor reasons that drive DSO
Streamline process of dispute resolution

Dispute Management
(Tech. Components in the Business Process)
Customer AR-Clerk Sales Manager Quality Mgt. ...

Input Input Input Input Input
Dispute
Dispute Management:
Management:
- -Dispute
Disputecase
case - -Notes
Notes - -Workflow
Workflow
- -Reason
Reasoncode - -History - -Authorization
code History Authorizationconcept
concept
- -Status - -Actions
Actions(e.g.
(e.g.automatic
automaticmail,
mail,phonecall) - -Employee determination
Status phonecall) Employee determination
- -Process
Processdata - -Triggering of accounting processes - -Customizing
data Triggering of accounting processes Customizingofofprocesses
processes
- -etc.
etc.
Integration Integration Integration Integration
Receivables
Production
Campaign
Analyze
Payables
Shipment
Billing
Order
Cash
Business Process is managed within:
CRM SCM MM SD FI-AR/CA/BL Business Analytics ....

Functional Overview
Cross-department dispute resolution

All information is centrally stored and structured (electronic record)
Integration with SAP Workflow incl. e-mail notification of processors
Integration in financial but also in logistical processes

Creation and viewing of dispute cases from financial transactions
Automatic update of dispute cases by financial transactions
Links to financial and billing documents (SD and CRM)
Correspondence capabilities
Customer correspondence (automatic and manual)
Internal escalation of critical dispute cases
Support of different communication channels

SAP Biller Direct
Analysis of dispute resolution

BI Content
SAP Dispute Management - Functions
Dispute Case:
The dispute case is the central unit used to process the business
transaction.
Reason Code:
The reason code specifies the reason for a dispute case.
Status:
The status specifies the current processing status of a dispute case.
Notes and History:

Notes can be stored in the dispute case, for comments on processing and
actions undertaken.
Every transaction is saved together with processor and time.
Accounting and Postings:

Accounting processes can be started direct from the dispute case such as
posting a credit, transfer to dunning etc.
Workflow and Escalation

Dispute
DisputeManagement
Management
Example
Example

Create Dispute from Incoming Payment: Residual Item
(Short Payment)

Create Dispute Case from Line Item Display

Create Dispute Case from Display Document

Line Item Display and Dispute Case Integration
Create and display dispute case Create dispute case
Integrate dispute information

in line item layout

Business Benefits
Reduce DSO
Increase customer profitability
Improve liquidity and cash forecast
Optimize, streamline and accelerate cross-department dispute

resolution which is today usually a manual and time-consuming
process
Gain information about flaws in existing processes that frequently

lead to disputes
Improve customer relationship by more tightly focused queries

and quicker resolution of disputes

Agenda
FSCM Components
Summary & Roadmap

Real Business Impact of FSCM
The impact is profound:
SAP Credit Management Shorter settlement cycles

SAP Biller Direct Faster dispute resolution
SAP Biller Consolidator Lower costs of payment and billing
SAP Collections Management Increase share of receivables
SAP Dispute Management Less bad or doubtful debt
SAP In-House Cash Improved cash flow management
SAP Cash & Liquidity Management Reduced working capital
SAP Treasury & Risk Management Decreased nonproductive float

Roadmap SAP Financial Supply Chain Management
mySAP ERP 2004

(incl. SAP FSCM 3.0) mySAP ERP 2005
SAP
(incl. SAP FSCM 6.0)
FSCM 2.0
Ramp-Up
Q2/2004
Plammed
Q4/2005
Release to Customer
Q3/2003
Focus: Focus:
• Biller Direct • Biller Direct
• Dispute Management Dispute Management integration, collection authorization
• Credit Management* • Dispute Management

Automation & prioritization, workflow integration, correspondence
Credit manager portal, credit rating,
credit rules engine • Collections Management
Automated worklists, promises to pay, integration with Dispute Mgmt.
• Treasury & Risk Management
Parallel valuation area, position monitor, • Credit Management
new instruments Credit Limit Check, Credit Analysis, Credit Eventing, Workflow
• In-House Cash
Prima Nota, Integration with Cash and Treasury & Risk Mgmt
• Treasury & Risk Mgmt
New instruments for forex and derivatives, Hedge Accounting,
* pilot customers only
 SAP AG 2004, Title of Presentation / Speaker Name / 68 enhancements in Market and Credit Risk Analyzer
SAP FSCM Customers
Click on company logos for

more information

mySAP ERP Financials
Management (FSCM)
Peter Voss
SAP (UK) Ltd
Peter.Voss@sap.com
Appendix
FSCM Customers
SAP Treasury and Risk Management at DSM
DSM runs SAP Treasury and Risk
Management
Management of financial deals
Enables internal FX dealing
Reduce financial risks
Enhanced internal controls
Improve the reliability of the treasury
process
Payback in less than one year
“We’re now poised to grow with the organization without

having to hire more staff. In fact, I could see us double our
business with the same number of staff.”
Ad van Sleeuwen, Managing director DSM
Finance and corporate treasurer DSM Group

SAP In-House Cash at Statoil
STATOIL runs SAP In-House Cash:

Cash management and treasury functions
centralized
Significant ROI realized quickly
Annual savings: $3.5 million
Project Payback: 1 1/2 years
“We now have a single, centralized shared services

center for performing operations. In addition, we have
reduced the number of external banks we deal with for our
accounts in various countries. We have saved a lot of
money by doing this.”
Kjell Fuglestad, Group Treasurer, Statoil

SAP Dispute Management at SAP
SAP Runs SAP Dispute Management

Enables greater visibility of invoice issues
Real-time integration with SAP R/3
Reduces DSO up to 10 days
Potential annual cost savings up to 3 Mio. Euro
Reduced processing time from 28 to 8 days
“At SAP Germany we had almost 4.500 disputes last year with a total
volume of more than 100 Mio. Euro. With SAP Dispute Management we
will improve our internal processes significantly.”
Volker Merk, Controller Global Field Operations, SAP AG

SAP Biller Direct at SONY UK
SONY UK runs SAP Biller Direct

Enables self-service for dealer network
Rapid implementation: 30 days
Reduces call center volume for account
status by 30%
Enables greater focus on cash collections
and dispute resolution
“SAP Biller Direct augments our dealer portal with

invoicing and account management capabilities. Now, our
dealers have better visibility of account status and ability
to make payments electronically. This has enabled our
customer accounts team to focus their time on collections
and dispute resolution, which will ultimately have a
positive impact on cash flow.”
Matthew Jepp, General Manager, Finance, SONY UK

SAP Biller Direct and Dispute Management
at Reynolds & Reynolds
Reynolds & Reynolds runs SAP Biller
Direct and Dispute Management
Invoice copy self service for customers and
sales reps to avoid calls, reduce costs and
increase customer satisfaction
Disputes are tracked company-wide and by
business line
Automatic e-mail notification on dispute
escalation
Sales reporting of dispute data
“ We’ve made a corporate investment in SAP as our base

enterprise functionality. If you look at total cost of ownership,
you’ll find that an integrated, flexible solution like SAP is the
way to go.”
Craig Braunschweiger, Director of Internal Delivery

Systems, The Reynolds and Reynolds Company

FSCM
Management
Peter Voss
SAP (UK) Ltd
Copyright 2004 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®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® 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®, Informix and
Informix® Dynamic ServerTM are trademarks of IBM Corporation in USA and/or other countries.
ORACLE® is a registered trademark of ORACLE Corporation.
UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of the Open Group.
Citrix®, the Citrix logo, ICA®, Program Neighborhood®, MetaFrame®, WinFrame®, VideoFrame®, MultiWin® and other
Citrix product names referenced herein are trademarks of Citrix Systems, Inc.
HTML, DHTML, XML, XHTML 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.
MarketSet and Enterprise Buyer are jointly owned trademarks of SAP AG and Commerce One.
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 information purposes only. National product specifications may vary.

Co

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Co

Caricato da

Copyright:

Formati disponibili

mySAP ERP Financials

Financial Supply Chain

Today‘s Business Issues

Summary & Roadmap

Order 4 - 7 days Today

Delivery 14 - 21 days Next day

Invoice 4 - 7 days Same day

Payment 45 - 60 days 45 - 60 days

Source:Killen&Associates, Inc., 2001

 SAP AG 2004, Title of Presentation / Speaker Name / 3

How can we integrate finance and day-to-day

 SAP AG 2004, Title of Presentation / Speaker Name / 4

Days In Payables Days In Receivables

Cash Coll. Settle-

Cash Coll. Settle-

 SAP AG 2004, Title of Presentation / Speaker Name / 7

High DSO (Days Sales Outstanding)

 SAP AG 2004, Title of Presentation / Speaker Name / 8

Today‘s Business Issues

Summary & Roadmap

Financial Supply Chain Management (FSCM) is an

Better predictability of cash flow

 SAP AG 2004, Title of Presentation / Speaker Name / 10

Customer Relationship Product Lifecycle

Fast Close & Financial

 SAP AG 2004, Title of Presentation / Speaker Name / 11

SAP Credit Management

SAP Biller Direct

SAP Collections Management

SAP Dispute Management

SAP Financial Supply Chain Management

SAP CREDIT MANAGEMENT

Automate Credit Decisions & Track credit applications

Credit Limit Management

Credit Rules Engine

Credit Manager Portal

R/3 Credit Management SAP Credit Management

Master Data FI-AR Account SAP Business Partner

Monitor Credit Exposure Only for simple system- Distributed system-

Customer Scoring/Rating Not available Credit Rules Engine

Workflow Create Workflow for any

Connectivity for non SAP- Not available XI Server

 SAP AG 2004, Title of Presentation / Speaker Name / 16

Ext. Credit Credit Scoring B Credit Limit L

L (Credit Limit) = 0,01 * S * 2 * V

 SAP AG 2004, Title of Presentation / Speaker Name / 17

Credit Management Credit Events

Credit limit exceeded

master data credit limit

Trigger ext. applications

 SAP AG 2004, Title of Presentation / Speaker Name / 19

January March Business Benefit

SAP Credit Management

SAP Biller Direct

SAP Collections Management

SAP Dispute Management

SAP Financial Supply Chain Management

SAP BILLER DIRECT

Electronic invoicing for businesses

 SAP AG 2004, Title of Presentation / Speaker Name / 22

Electronic Bill Presentment and Payment (EBPP) refers to

Electronic Invoice Presentment and Payment (EIPP) refers to

Both refer to a system which allows for the display of invoices