Sei sulla pagina 1di 59

SAP Collections Management for

Utilities

Martina Knoedler
Solution Management Service Industries SAP AG

Agenda

1.

Introduction

2.

Determination and Execution of Collection Activities

3.
4.

Determination of Collection Step


Responsible Determination
Workload Balancing
Managing Collection Work Lists

Process Collection Workitems


Enhancements in Financial Customer Service Processes

Collection Fact Sheet


Collection History
Promise to Pay
Customizable Balances
Outgoing Payment Request

5. Dispute Management

Where to find the Financial Customer Service


Processes in a Utilities Profile

Functionalities
of Standard IC
WebClient

Utilities Specific
Functionalities in
IC WebClient

Financial Customer
Service Processes
in IC WebClient

Collections Management in IC Web Client

Contact a customer as a reminder to pay


the overdue receivables

Helpful features in IC WebClient


Worklist entry based on overdue receivables,
sorted by priority / ranking
-

Display of all relevant information for a


collector
-

Possibility for drill-down into further details


where needed
-

Providing all necessary functions for


collections process
-

Collections Overview

Set up dunning procedures


or collection strategies
Maintain responsibilities
Maintain rules for collection
Set up / Adjust
agency determination
Business
Rules
Etc.

Determine Next
Activities

Analyze/
Measure
Success

Execute
Activities

Dunning run identifies


overdue accounts and
determines next activities
based on predefined rules

Manage Collections
Work Lists
Submit Receivables to
Collection Agencies

Process Workitems
Create and Process
Collection Work items

Business Process Areas in Collections


Management

Mass activity
Collection Strategies

ERP

Manage Collections
Work Lists

ERP

Today
FI-CA classical dunning
based on dunning
procedures
New (ERP6.0 EhP2)
Dunning by collection
strategy; dunning strategy
and ranking rules are
modeled in Business
Rules Framework (BRF);
Evaluation of P2Ps
Evaluation of collection
success (per master data
entity and collection step)

Process Collections
Workitems

IC WebClient
Today
IC Web Client for
processing incoming/
outgoing calls

New (ERP6.0 EhP2)


Maintenance of rules for
automatic assignment of
Workitems to teams/
agents
Worklist management
Release of dunning
activities

Measure
Success

ERP
Today
A variety of BI content
available

New (ERP6.0 EhP2,


New (ERP6.0 EhP2)
CRM 2006s)
Additional BI content
IC Web Client for
coming
Collection Success per
Collection Agents
provides all data and
master data entity and
functions for collectors
collection strategy/step
Full view of customer
Efficiency of collectors
Promise-to-pay
and accounts
Create/ change promiseanalysis
to-pays
Collection fact sheet
Extended collection
history

Agenda

1.

Introduction

2.

Determination and Execution of Collection Activities


Determination of Collection Step

Responsible Determination

Workload Balancing

Managing Collection Work Lists


Processing Collection Workitems
Enhancements in Financial Customer Service Processes

3.
4.

5.

Collection Fact Sheet


Collection History
Promise to Pay
Customizable Balances
Outgoing Payment Request

Dispute Management

Collections Activities

Create correspondence: Letter, Fax, Email


Work list entry for internal collection agent
Generate Request for security deposit
Trigger service order, e.g.
disconnection/reconnection
Release to external collection agencies
Automatic write off
Creation and posting of charges and/or interest
De-activate instalment plan
Update payment behaviour / creditworthiness

Characteristics of Business Rules Framework

Flexible, dynamic evaluation of different parameters

Linear as well as decision-tree based collection


strategies possible

Logic is transparent to the business

Configurable by a key business user

Reduces previous programming efforts

Possibility of integrating manual and automatic


activities

Change of Approach
Dunning by Dunning Procedure

Dunning by Collection Strategy

Dunning level dunning activities

Collection step dunning activities

Dunning procedure of contract account


determines number and sequence of
dunning levels

Rules engine determines next collection


step according to collection strategy for
group of contract accounts

Dunning level 2

Collection step 2

Amount
Business
Rules
Framework

Days
Dunning level 1
Amount
Days

Dun
ning
data

Collection
Strategy

Credit rating

Dunning history
(last collection step)

Overview Rules Definition

Data Request

All data available in the system can be used to form


the basis for the determination of the appropriate
collection step:

Creditworthiness

Dunning Balance

Highest Amount of Items within Dunning History

Latest Due Date

Postal Code

Industry Code

Number of Broken Promise-to-Pay

Minimum Days in Arrears

Rules for Determination of


Collection Step, Ranking,

The expression type of the


decision tree is used for the
derivation of the collection step
and the evaluation number

All data requested can be used in


the other expression types
(Ranges, Formulas, Truth Table
etc.) to define a conditional step
within the decision tree. The result
of each step is either false or true

As target you define within the


decision tree the collection step
BRF
Event

Collection
Step

Application Class

Regel
Regel
Regel

Collection steps are defined as constants:

Reminder Letter

Collection Workitem

Transfer to external Collection Agency

Actions

Rule

Action
Action

Actions
Action

optional
IF

Expression THEN

Expression

Expression

Action

Expression

Collections Management BRF Integration


FI-CA: Collections Management (Event 315)
Input:
Current dunning group
Items in group
Etc.

Return parameters:
Next collection step
Valuation number
Rank
Messages

BRF Context

Application Class

BRF
Event

Regel
Regel
Regel
Rule
optional
IF

Expression

Expression

THEN

Expression

Actions
Action
Action
Actions
Action
Action

Expression

Role of Collection Step

Re-use of features from dunning:


Link

to dunning activities

Settings

for Charges and Interest

New features:
Interval

(instead of dunning rhythm)

Closing

of item group

Capacity
Perform

balancing settings

success evaluation (note: feature also available on

dunning levels)

Dunning by Collection Strategy

1. Business Rules Framework


Dunning Proposal

business rules evaluation for a


contract account or group of
contract accounts

2. Collection Step
definition of dunning activity,
activity priority, dunning interval,
charges & interest, alternative
collection step

3. Organizational Management
responsibility determination

4. Capacity Planning &


Workload Balancing
definition of max. no. of dunning
notices in a dunning activity

Dunning Activity Run

Collections Embedded in Organizational


Structure
Collection
Center
Region West

Responsible
for Collections
In Region West

Position:
Collection Manager

Multiple independent collection


organizations can be set up

Teams or individuals can be


determined based on business
rules

Taking into account absence of


agents

Automatic determination and


manual intervention by collection
manager

Prerequisite for workload balancing

Sandy
Collections
TeamCollections
1
Team Collections
1
Team 1

Responsible
for Private
Customers

Collections
Team 2

Position:
Team Lead

John
Responsible
For customers
range A-K

Position:
Collection Agent

Responsible
For bankrupt
customers

Position:
Collection Agent

Cathy

Fred

Capacity Planning and Workload Balancing

Agent

Max. no. of
activities

Release activities
from

Alternative
activity

1.500

Activity

Department

Unit

Early reminder

Collections
Region West

Team 1

Outbound call

Collections
Region West

1.300

Y Letter

Disconnection
Order

Collections
Region West

2000

Prerequisite: determination of responsible department, optional: unit and


agent

Upper limit for number of activities that can be processed

Option to execute an alternative activity

Option to request explicit release of activities starting from a threshold

Capacity Planning and Capacity Balancing Sequence


3. Dunning Notice Release
1. Dunning Proposal

2. Dunning Activity Run

5. Dunning Notice Release

4. Dunning Activity Run

Workitem Creation - Overview

Workitem
CATEGORY 01

Dunning/
Collection
run

Dunning/
collection
activity
Collection
step
A
Collection
step B

Worklist 01

Workitem
CATEGORY 02

Workitem
CATEGORY 03

Workitem
CATEGORY 04

Worklist 02

Cockpit for Managing Work list

Monitoring and Adjusting a Worklist

Collections Management:
Customizing in ERP System I

IMG Contract Accounts Receivable and Payable


Business Transactions
Dunning
Define Charge Categories for Dunning
Define Document Types for Dunning Charges Categories
Configure Charge Schedules for Dunning Procedure
Define Specifications for Interest on Arrears
Configure Dunning Activities
Define Dunning Lock Reasons
Define Time-Dependent Creditworthiness Weightings
Define Execution Variants for Dunning Proposal Run

Collections Management:
Customizing in ERP System II

IMG Contract Accounts Receivable and Payable


Business Transactions
Dunning

Dunning by Dunning Procedure


Dunning by Collection Strategy
Define Collection Step
Settings in Business Rules Framework
Define Collection Strategy
Define Capacity Planning for Dunning Activities
Work List and Workitems
Master Data Grouping
Clerk Determination

Master Data Groups for Collections

Business Partner

Grouping level:
contract account

Group 1
Contract Account

Contract

Contract Account

Contract

Contract

Contract

Group A
Group C

Contract Account

Contract

Group 2

Contract

Group B

Grouping levels:
Contract account or
Contract (only in industry solutions with contrac

Master Data - Migration

Setting up (existing) contract accounts for collections management:

Report RFKK_UPDATE_MASTERDATA can make settings based on existing values


on contract account
Event 1044 used for determination of master data group and collection strategy:

Posting area 0400 for default values

Event 1045 used for determination of contact person

Progress and Success of Collections


There are different levels for measuring

Progress of collection activities


-

Evaluation of promises to pay


-

Fulfilled vs. broken promises to pay

Success of collection strategy for a specific customer


-

Monitoring of work lists regarding outstanding amounts and open items

Which activity resulted in the payment


Partial vs. full settlement
Can impact the next collection step

Champion Challenger Analysis


-

Identification of the most successful collection strategies

Agenda

1.
2.

Introduction
Determination and Execution of Collection Activities

Determination of Collection Step


Responsible Determination
Workload Balancing
Managing Collection Work Lists

3.

Processing Collection Workitems

4.

Enhancements in Financial Customer Service Processes

5.

Collection Fact Sheet


Collection History
Promise to Pay
Customizable Balances
Outgoing Payment Request

Dispute Management

Integrated Collections Functions for


Processing Workitems
Work lists/
Workitems

Automatic resubmission of Workitems


Link to the appropriate functions

Alerts during
customer call

Giving instructions to agent

Collection Fact
Sheet

Showing overall customer status incl.


collection information

Customer Detailed
Views

For additional background information

Enhanced collections history


Get update on customers payment data
Capture payment commitment (promise-to-pay)
Capture payment authorization
Offer installment plan

360 degree view of customer


Customer Interaction history
Including

financial and non-financial (service, order-related) interactions


Outbound and inbound interactions
Interactions manually processed as well as interactions output through
mass processes

Customer Fact Sheets


Brings
-

together the most important data of a customer


Various fact sheet levels: business partner level, account level
Easily customizable (including finance data, contract data, etc.)

Detailed Financial Views


Invoices

including access to archived documents


Account balances
Dunning history including details about items, activities, documents
Payment history
Search for payments unapplied/ applied wrongly

Work list Overview

Detail View for Workitem

Workitem : Customizing in CRM System

IMG Customer Relationship Management


Interaction Center WebClient
Industry-Specific Functions
Integration with Contract Account Receivable and Payable (FI-CA)
Edit FI-CA Profiles

Agenda

1.
2.

Introduction
Determination and Execution of Collection Activities

Determination of Collection Step


Responsible Determination
Workload Balancing
Managing Collection Work Lists

3.

Processing Collection Workitems

4.

Enhancements in Financial customer Service Processes

5.

Collection Fact Sheet

Collection History

Promise to Pay

Customizable Balances

Outgoing Payment Request


Dispute Management

Enhancements for FCC - Collection Fact Sheet

Fact Sheet Customizing I

IMG Customer Relationship Management


UI Framework
UI Framework Definition
Maintain Fact Sheet

Fact Sheet Customizing II

Fact Sheet Customizing III

New Views for a Collections Fact Sheets

View

Description

View name
(technical)

Promise to Pay

Promise to Pay History display

FICACMP_P2P/FicaP2PFsList

Collection
Strategy
Current Workitem
Partners for
current Workitem
Notes History for
current Workitem

Collection strategy history display for


one dunning group. Only for dunning
by collection strategy. If no Workitem
is specified, the dunning history of the
current master data is evaluated. If the
selected master data include more
than one dunning group, * will be
displayed for collection strategy and
current/ preceding collection step.
FICACMP_DUN/FicaFSCollStra
Display details of the currently
processed Workitem and business
partner.
FICACMP_WLI_2/WLISingleDetails
Display details of the currently
processed Workitem
FICACMP_WLI_2/WLIFSPartners
Notes display for the currently
processed Workitem and contract
account group.
FICACMP_WLI_2/WLINotesDisplay

Collections History IC WebClient View

Dunning History and Collections History


Dunning History

Lists dunning headers according to


the selection criteria (e.g. for a
specific dunning run, for a specific
business partner, for a collection
strategy, etc.)
Shows items related to a dunning
header
Shows activities related to a dunning
header
Shows correspondence issued
through dunning activities
Allows to reverse a dunning header

Collections History

Selection criteria restricted to master data


entities (business partner, contract account,
contract) and optionally a range of open
items
Shows items related to a dunning header
Shows activities related to a dunning header
Hierarchical display of a leading object
(typically dunning header) and sub-ordinate
objects
Can show correspondence related to a
dunning header
Can show details related to activities
Can also show installment plans, promisesto-pay, payments as they relate to the
dunning header or other objects
Extensible to report on further objects (e.g.
disconnection orders, CRM interactions)
No reversal function available
Is based on runtime evaluation of various
data sources

Customizing in ERP System

IMG Contract Accounts Receivable and Payable


Business Transactions
Dunning

Dunning by Dunning Procedure


Dunning by Collection Strategy
Collection History
Define Event Categories
Define Events
Define Variants
Make General Settings

Procedure of Promises to Pay

Dunning
Activity Run

Open item

If P2P is broken the


original open items
will be evaluated
again by the collection
activity run

Worklist entry

Correspondence
P2P initiated

Promiseto-pay

Valuation
Run

P2P Open

P2P Fulfilled

Correspondence

P2P Broken

Update Creditworthiness

Execute custom
-specific activity

Architecture of Promise to Pay


SAP CRM (Interaction Center WebClient)

The Promise to Pay is an object in


the ERP backend system.
Creation, Display, Replacement
and Withdraw of a promises to pay
can be done in IC WebClient
A Fast entry functionality for
creating a Promise to Pay is
provided in IC WebClient

/ Status
RFC
Source System ERP

Evaluation Run is done in the


backend system by mass activity

Promise to Pay
Amount

Reason

Reason

Fulfillment rate

Status

Filled by evaluation run

Display of the results of the


Evaluation Run again is possible in
front-end system.

Promise to Pay in IC WebClient

Customizing in ERP System: Promise to Pay

IMG Contract Accounts Receivable and Payable


Business Transactions
Promise to Pay
Define Categories
Define Reasons for Creation
Define Reasons for Withdrawal
Define Specifications for Creation
Define Specifications for Valuation of Promise to Pay
Edit Number Range for Promise to Pay
Archiving

Enhancements for FCC - Customizable


Balances
Business partner items
BPART Net due date Amount
1740 03/23/ 2007 232.00

Balance Display
Balance Group 1
< = 30d 31d-60d 61d-90d

> 90d

Receivables
Credits
Reserved

Sum up items
to balances

Display

Reserved
Credits
Payments

Receivables

Build grids of
balances

< = 30d
31d-60d
61d-90d
> 90d

Customizable Balances Balance Variant /


Balance Group

Balance Category
Receivables

Balance Variant 1

Balance Group 1

Receivables and Credits


Items in Collection

Balance Group 2

Balance Interval
Open receivables

Balance Group 3

Open since 30 days


Open since 31 60 days
Open since 61-90 days
Open since 90 day and longer

Customizable Balances in IC WebClient


Account Balance

Customizing: Customizable Balances

ERP System
IMG Contract Accounts Receivable and Payable
Basic Functions
Account Balance Display
Balances Variants
Define Balance Categories
Define Balances Grid
Define Balances Groups
Define Balances Variants

CRM System
IMG Customer Relationship Management
Interaction Center WebClient
Industry-Specific Functions
Integration with Contract Account Receivable and Payable (FI-CA)
Edit FI-CA Profiles

Steps to Enhance the Balances Variants in


IC WebClient

1. Change Customizing for Balance Variants in


ERP System

2. Enhance Event 1299

3. Adopt Event 2801

Enhancements for FCC - Outgoing Payment


Requests

Approval of the
Request
.
O.K

Refund of credit

Outgoing Payment Request: Process flow

1) Entering Outgoing Payment Request in Interaction


Center Web Client (incl. payment data)
2) Creation of Payment Specification in Backend
System
3) Decision whether creation has to be approved
4) After approval payment is processed within the
payment run

Outgoing Payment Requests in Interaction


Center
Items already included in a
payment specification are
marked with status icon

Payments : Customizing in ERP System

IMG Contract Accounts Receivable and Payable


Integration
Customer Relationship Management
Business Transactions in IC WebClient
Define Types of Agreement for Payment Processing
Define Types of Agreement for Payment Processing

Benefits

Less bad / risky customers

Increased Cash Flow / Lower DSO

Reduction in write-offs

Reduced overall financial risk

Reduced operating costs

Reduced collection time

Transparent processes and data across different organizations and even systems

Seamless integration in IS-U/FI-CA processes as well as in Call Center

Full transparency / 360 degree view of customer

Flexibility in collections processes to meet specific needs

Agenda

1.
2.

Introduction
Determination and Execution of Collection Activities

3.
4.

Processing Collection Workitems


Enhancements in Financial Customer Service Processes

5.

Determination of Collection Step


Responsible Determination
Workload Balancing
Managing Collection Work Lists

Collection Fact Sheet


Collection History
Promise to Pay
Customizable Balances
Outgoing Payment Request

Dispute Management

Business Process

Account is calling
Provider to complain
about a Bill(s)

Callcenter Agent
identifies Account

Callcenter Agent
identifies Bill

Callcenter Agent
creates a Dispute
Process dispute
dispute can be on
whole Bill
certain Bill Line Item(s)
certain EDR(s)

Callcenter Agent creates


an Adjustment Request
for the Dispute

Dispute Detail - Header and Items

Limitation

The solution does currently not contain:

Integration with Invoice Display for Utilities

Standard interface for Bill display to and integration with SAP ERP Billing and
SAP ERP Convergent Invoicing

Automated checks for the permitted adjustment amounts or usage

Create Disputes related to objects from the account receivables system (dunning
notes, payments, fees)

Integration with FI-CA

block disputed amounts against dunning, automatic collection and interest calculation

Automatic update of Dispute in case of postings in FI-CA related to the disputed


documents

ases
le
e
r
e
r
u
t
d for fu
e
n
n
a
l
p
t
Bu

Copyright 2007 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.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge 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 and
associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.
The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document
contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy,
and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or
other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of
merchantability, fitness for a particular purpose, or non-infringement.
SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation
shall not apply in cases of intent or gross negligence.
The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these
materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages

Weitergabe und Vervielfltigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrckliche schriftliche Genehmigung durch
SAP AG nicht gestattet. In dieser Publikation enthaltene Informationen knnen ohne vorherige Ankndigung gendert werden.
Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte knnen Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwhnte SAP-Produkte und Services
sowie die dazugehrigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Lndern weltweit. Alle anderen in diesem Dokument erwhnten
Namen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zu
Informationszwecken. Produkte knnen lnderspezifische Unterschiede aufweisen.
Die in diesem Dokument enthaltenen Informationen sind Eigentum von SAP. Dieses Dokument ist eine Vorabversion und unterliegt nicht Ihrer Lizenzvereinbarung oder einer anderen
Vereinbarung mit SAP. Dieses Dokument enthlt nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP-Produkts und ist fr SAP nicht bindend, einen bestimmten
Geschftsweg, eine Produktstrategie bzw. -entwicklung einzuschlagen. SAP bernimmt keine Verantwortung fr Fehler oder Auslassungen in diesen Materialien. SAP garantiert nicht die
Richtigkeit oder Vollstndigkeit der Informationen, Texte, Grafiken, Links oder anderer in diesen Materialien enthaltenen Elemente. Diese Publikation wird ohne jegliche Gewhr, weder
ausdrcklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschlielich, hinsichtlich der Gewhrleistung der Marktgngigkeit und der Eignung fr einen bestimmten Zweck
sowie fr die Gewhrleistung der Nichtverletzung geltenden Rechts.
SAP bernimmt keine Haftung fr Schden jeglicher Art, einschlielich und ohne Einschrnkung fr direkte, spezielle, indirekte oder Folgeschden im Zusammenhang mit der Verwendung
dieser Unterlagen. Diese Einschrnkung gilt nicht bei Vorsatz oder grober Fahrlssigkeit.
Die gesetzliche Haftung bei Personenschden oder die Produkthaftung bleibt unberhrt. Die Informationen, auf die Sie mglicherweise ber die in diesem Material enthaltenen Hotlinks
zugreifen, unterliegen nicht dem Einfluss von SAP, und SAP untersttzt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gewhrleistungen oder Zusagen ber
Internetseiten Dritter ab.
Alle Rechte vorbehalten.