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SAP Receivables Management Seminar Using SAP Collection Strategies & Correspondence Automation to Increase Collections
SAP Receivables Management Seminar Using SAP Collection Strategies & Correspondence Automation to Increase Collections
SAP Receivables Management Seminar Using SAP Collection Strategies & Correspondence Automation to Increase Collections

SAP Receivables Management Seminar

SAP Receivables Management Seminar Using SAP Collection Strategies & Correspondence Automation to Increase Collections

Using SAP Collection Strategies & Correspondence

Automation to Increase Collections Performance and

Reduce DSO

Sashi Narahari

CEO, HighRadius

Feb 6, 2013

Dallas, Texas

Agenda

SAP Collection Strategies

How to effectively segment customers?

Sap Collections integration with A/R

Is it real-time?

Correspondence Automation

How to make the computer do a lot of ‘standard repetitive

work’ and refocus the analysts time on high value targets?

Demo Standard SAP Collections Management HighRadius Advanced Correspondence Automation
Demo Standard SAP Collections Management HighRadius Advanced Correspondence Automation

Demo

Standard SAP Collections Management

HighRadius Advanced Correspondence Automation

SAP Collections Management Users

Collections Manager
Collections Manager
SAP Collections Management Users Collections Manager  Define collection strategies / rules  Define work item

Define collection strategies / rules

Define work item assignment to users / groups

Monitor and reallocation of

workload

Collections Specialist
Collections Specialist
Monitor and reallocation of workload Collections Specialist  Incoming / Outbound collection calls  Process daily
Monitor and reallocation of workload Collections Specialist  Incoming / Outbound collection calls  Process daily

Incoming / Outbound collection calls

Process daily worklist based on prioritization

Record customer contact and

follow up

Collections Management Users Collections Manager

Data available for Collection Strategies • Broken Promise to Pay • Aging • Amount •
Data available for Collection Strategies
• Broken Promise to
Pay
• Aging
• Amount
• Number of Promise
• Dunning Level
to Pays
• Amount Dunned
• Promise to Pay
• Disputed Amount
Amount
Open AR &
• Dispute Case Status
• Customer Contacts
Collections
• Payment Data
Dispute
• Resubmissions
Data
Mgmt Data
Other Data Credit Data • Master Data or • Credit Limit Operational Data • %
Other Data
Credit Data
• Master Data or
• Credit Limit
Operational Data
• % Utilization
which can be added
• Credit Exposure
to collections
management
• Risk Category

Collections Strategy Definition

Collection Collection Strategy Rules High to Medium Risk and greater than 80% Credit Limit Utilization
Collection
Collection
Strategy
Rules
High to Medium Risk and
greater than 80% Credit
Limit Utilization
Valuation: 35 points
Collection Strategy for
High Risk Customers
Past Due Invoices Over 15
days Past Due & Dunned
Maximum Valuation = 100
One or More Times
Valuation: 50 points
Resubmission Due for the
Customer
Valuation: 15 points

Collection Strategy Valuation

Valuation of customer is les than

20% of

Maximum Valuation

Low Priority

Valuation of

customer is

less than 40% of Maximum

Valuation

Medium

Priority

Valuation of

customer is

less than

60% of

Maximum Valuation

High Priority

Valuation of

customer is

less than or

greater than equal to

100% of

Maximum Valuation

Very High

Priority

Solution Architecture

Set of Customers [C1, C2, ………Cn] Rules Strategy Subset of Set of Customers Customer Email
Set of
Customers
[C1, C2,
………Cn]
Rules
Strategy
Subset of
Set of
Customers
Customer
Email
s [C1, C2,
[C1, C2,
C3……………Cn]
………Cn]
Auto
Correspon-
dence
Fax
Mail
Call

Sample Scenario

Customer Segmentation

Small & Medium Business Slow Pay

Automated Proactive Reminder 7 days before

Past Due Notice 1 after 7 Days

Past Due Notice 2 after 21 Days

Demand Notice after 45 days

Call Customer after 60 days

Small & Medium Business - Fast Pay

Past Due Notice 1 after 14 Days

Past Due Notice 2 after 28 Days

Call Customer after 50 days

Major Accounts (Large Customers)

Proactive Reminder 14 days before

Past Due Notice 1 after 14 Days

Call Customer after 30 days

Collections Management: Collection Strategy

Strategy for Slow Pay Customers
Strategy for
Slow Pay
Customers
• Pro-active (0-20 points) • 1 st Past Due (21-40 points) • 2 nd Past
• Pro-active (0-20 points)
• 1 st Past Due (21-40 points)
• 2 nd Past Due (41-60 points)
• Demand Notice (61-80 points)
• Call (81-100 points)

Collections Management: Collection Strategy

Strategy for Fast Pay Customers
Strategy for Fast
Pay Customers
•1 st Past Due (21-40 points) • 2 nd Past Due (41-60 points) •Call (81-100
•1 st Past Due (21-40 points)
• 2 nd Past Due (41-60 points)
•Call (81-100 points)

Collections Management: Collection Strategy

Strategy for Major Customers
Strategy for
Major
Customers
• Pro-active (0-20 points) • 1 st Past Due (21-40 points) • 2 nd Past
• Pro-active (0-20 points)
• 1 st Past Due (21-40 points)
• 2 nd Past Due (41-60 points)
•Call (81-100 points)

Collections Management Users Collections Specialist

Collections Management: Collector’s Worklist

List of Customers Prioritized
List of
Customers
Prioritized

Pro-active (0-20 points)

1 st Past Due (21-40 points)

2 nd Past Due (41-60 points)

Demand Notice (61-80 points)

Call (81-100 points)

Is SAP Collections real-time?

Short Answer: YES!

• Worklist generation is batch • Say once a day
• Worklist generation is batch
• Say once a day
• Open Items is real-time • Data is being read directly from A/R 17
• Open Items is real-time
• Data is being read directly
from A/R
17

Correspondence: From Worklist

Ability to send correspondence from Worklist
Ability to send
correspondence
from Worklist

Select Pro-active to mass process

Correspondence: Proactive Reminder

Select Package and which transactions to include in correspondence
Select Package and
which transactions to
include in
correspondence
Select Contact and Correspondence Mode
Select Contact and
Correspondence
Mode

Correspondence: Proactive Reminder

Correspondence: 1 st Past Due

Select 1 st Past Due to mass process
Select 1 st Past
Due to mass
process

Correspondence: 1 st Past Due

Select 1 st Past Due Package
Select 1 st Past Due
Package

Correspondence: 1 st Past Due

Correspondence: 2 nd Past Due

Select 2 nd Past Due to mass process
Select 2 nd Past
Due to mass
process

Correspondence: 2 nd Past Due

Select 2 nd Past Due Package & ‘Send’
Select 2 nd Past Due
Package & ‘Send’

Correspondence: Sample Email Correspondence

Correspondence: Sample Email Correspondence

Correspondence: Sample Email Correspondence

Letter and Invoice Copy attachments
Letter and Invoice
Copy attachments

Correspondence: Sample Email Correspondence

Correspondence: Sample Email Correspondence
Correspondence: Sample Email Correspondence

Correspondence: Sample Email Correspondence

Correspondence: Sample Email Correspondence
Correspondence: Sample Email Correspondence

Correspondence: Demand Notice

Select Demand Notice to process
Select Demand
Notice to process

Process Receivables: Customer Details Screen

Send correspondence button for individual customers
Send correspondence
button for individual
customers

Correspondence: Demand Notice

Select Demand Notice Package
Select Demand
Notice Package

Correspondence: Demand Notice

Correspondence: Package Definition

Select from a list of Smart Forms, Documents such as Invoice Copy, POD copy etc
Select from a list of Smart
Forms, Documents such
as Invoice Copy, POD
copy etc to define a
‘collated’ package

Correspondence: Maintain Letters

Select Letter to Create/Edit
Select Letter to
Create/Edit

Correspondence: Maintain Letters

Correspondence: Maintain Letters

Correspondence: Maintain Letters

Correspondence: Maintain Letters

Correspondence: Maintain Letters

Correspondence: Maintain Letters

Correspondence: Maintain Letters

Collector’s Worklist: Call Customers

‘Call’ customers with high past due balances or no outcome after correspondence
‘Call’ customers
with high past due
balances or no
outcome after
correspondence

Collections Management: Invoice Summary

Default Customer Contact readily available
Default Customer Contact
readily available
Review open items to be collected
Review open
items to be
collected

Collections Management: Payment History

Review payment history
Review
payment
history

Customer Contact Outcome

Promise to Pay Not Dispute Available Case Customer Contact Request Request additional Follow up data
Promise
to Pay
Not
Dispute
Available
Case
Customer
Contact
Request
Request
additional
Follow up
data

Call Customer Outcome: Promise-to-Pay

Create promise to pay on a collection call
Create
promise to
pay on a
collection call

Call Customer Outcome: Promise-to-Pay

Record promise for payment or customer contact at the invoice level
Record promise
for payment or
customer
contact at the
invoice level

Call Customer Outcome: Negotiate Installments

Ability to setup Installment plans on high risk customer
Ability to setup
Installment plans
on high risk
customer

Collections Management: Promise-to-Pay

Collections Management: Promise-to-Pay Promise for payment has been recorded
Promise for payment has been recorded
Promise for
payment has
been recorded

Collections Management: Promise-to-Pay

Summary of all Promise to Pay
Summary of
all Promise
to Pay

Call Customer Outcome: Create Follow-up

Create a Follow-up reminder on specific invoices
Create a
Follow-up
reminder on
specific
invoices

Call Customer Outcome: Create Follow-up

Identify the

date of the resubmission along with a Reason

Collections Management: Resubmission

Summary of all Resubmission
Summary of all
Resubmission

Call Customer Outcome: Invoice Disputed

Create Disputes on Invoices
Create
Disputes on
Invoices

Call Customer Outcome: Invoice Disputed

Ability to identify details of the dispute and route it to the appropriate analyst
Ability to identify
details of the dispute
and route it to the
appropriate analyst

Collections Management: Dispute Cases

Review open and closed dispute cases
Review open
and closed
dispute cases

Notes Management

Select invoice and enter invoice specific notes
Select invoice and
enter invoice
specific notes

Notes Management

Identify the

reason of the

note

Collections Management: Notes

Summary of all Notes
Summary of
all Notes

Collections Management: Completed Item

Text

Work item completed
Work item
completed