FSCM-COLLECTION MANAGEMENT

SAP Collections Management support you in

active receivables management. Using
collections strategies, you can valuate and
prioritize customers from a receivables
management view.
Cutomers that fulfill the rules defined in a
strategy are distributed to the worklists of the
collection specialists.
The collection specialists then contact the
customers in their order of priority in order to
collect receivables.
COLLECTION MANAGEMENT CONTENT

Overview and Land Scape

Organization Structure

Master Data Synchronization

Funcation of collections

Generation of worklists

System Configration

End User testing
CM OVERVIEW AND LANDSCAPE
OVERVIEW

 SAP Collections Management is part of SAP Financial Supply Chain

Management.

 SAP Collections Management supports:

 Evaluation, identification, stratification and prioritization of accounts

 From a risk management perspective
 From a customer relationship perspective

 Proactive processing of receivables:

 Payment reminders
 Promise to pay agreements
 Follow ups
 …
 Process optimization and automation for high volumes of open items.
 Workforce management
FEATURES OF SAP COLLECTIONS MANAGEMENT

 SAP Collections Management provides collection strategies which enable

you to select and prioritize customers actively collect receivables – this is
achieved by means of the automatic generation of the daily work lists
that are based on the collection strategies.

 SAP Collections Management offers various collection functions, which

enable you to document customer contacts or integrate them into the
collection process:

 Promise to pay agreements

 Creation of dispute cases (integration with SAP Dispute Management)
 Documentation for the 'Customer contact' object
 Generation of resubmission

 Collections manager have various options for controlling the collection

process:
 Definition and adjustment of collection strategies
 Maintenance of collection groups
 Assigning worklist entries and monitoring the processing of worklists
ORGANIZATION STRUCTURE
ORGANIZATION STRUCTURE IN CM

collection segment
collection profile
collection group
Assign Collection Groups to
Collection Segments
 Collection Strategy
SAP COLLECTIONS MANAGEMENT – OVERALL
CONCEPT
COLLECTION SEGMENT

 Collection segments group company codes of a

company from the view of SAP Collections
Management so that transaction data (open items,
dispute cases, promises to pay, ...) of a business
partner from these company codes can be
considered together.
 Collection segments in SAP Collections
Management have to be released . Once segment
has been released then ,you can no longer removed
the company codes that you have assigned to the
segment.
COLLECTION PROFILE

 Collection profiles are a grouping of collection

segments and thus split the company codes that
participate in SAP Collections Management. You
can determine how the company codes are split in a
profile and which company codes are not included
in a profile in the view Assign Collection Segments to
Profile using the function Assignment Status of
Company Codes.
 Collection profiles that you assign to the business
partner, you determine how the system is to
determine the priority and processor of a worklist
item.
COLLECTION GROUPS & ASSIGNMENT TO
SEGMENT

 The teams that work together in receivables management are

portrayed by collection groups. You assign a collection
strategy to each group. Based on this strategy, customers are
analyzed, prioritized, portrayed, and contacted.

 You group the companies (company codes), whose

receivables from customers are to be considered together in
collection segments.

 Using collection profiles that you assign to the business

partner, you determine how the system is to determine the
priority and processor of a worklist item.
COLLECTION STRATEGIES
 Collecting receivables with SAP Collections Management, the
worklist of a collection specialist is created based on a
collection strategy. Strategies control the prioritization of the
business partners and the display of information in the
worklist.
 The business partners are prioritized based on rules.
Conditions that are to lead to the business partner being
considered in the worklist are selected and valuated.
 EXAMPLE:
 SAMPLE0001: Prioritize worklist items using information in
Collections Management (promises to pay, resubmissions,
customer contacts)
 SAMPLE0002: Create worklists based on the amount to be collected
and using data from SAP Credit Management
 SAMPLE0003: Create worklists that you can use for collecting
receivables before the due date.
MASTER DATA SYNCHRONIZATION
DATA SYNCHRONIZATION
 The system replicates customer master data to business
partner master data automatically. Changes to customer
master data or business partner master data are
synchronized immediately.
Replicating customer data can mean:
 Newly created customers are replicated as SAP business
partners.
 Changes to customer data are synchronized with the SAP
business partner data.
 Newly created SAP business partners are replicated as
customers.
 Changes to SAP business partner data are synchronized
with the customer data.
FUNCTIONS FOR COLLECTING RECEIVABLES
1. CALL UP WORKLIST

 A worklist is created automatically for each collection

specialist on a daily basis (see the process Data
Synchronization and Creation of Worklists). The
collection specialist logs on to the Collections
Management system and calls up the worklist.
 The worklist contains all customers to be contacted in
order of priority. The prioritization of the customers in
the worklist (worklist items) is determined by the
collection strategy assigned to the customer.
2.PREPARING THE CUSTOMER CONTACT
 To prepare the customer contact, the collection specialist
needs information about why the contact is necessary. He also
needs to consider the customer’s account and previous
customer contacts.
 He can see why the customer contact is necessary by
displaying the valuation of the customer according to the
collection strategy. Here he can see an overview of all
collection rules fulfilled by the customer. Example: The
customer has broken promises to pay or open receivables
with dunning level 3.
 For a view of the current status of the customer account, the
collection specialist can look at the worklist. This contains key
figures for the customer, such as outstanding amounts, the
amount to be collected, the amount of broken promises to
pay, or when and with whom the last customer contact was
carried out. By navigating to the function Process Receivables,
the collection specialist can display the detail view of the
customer. Here the open receivables of the customer are listed
with their respective status.
3.PERFORMING THE CUSTOMER CONTACT
 To make the contact, the collection specialist uses the contact data of the contact
person at the customer that is displayed in the function Process Receivables. The
collection specialist enters the results of the customer contact in the system.

 If a customer promises to pay open invoices, the collection specialist creates

promises to pay for the invoices specified. The system automatically monitors
whether this promise to pay is kept. If the collection strategy is configured
accordingly, when promises to pay are broken the customer appears on the
worklist again.

 If the customer objects to an invoice, the collection specialist can create a dispute
case for the invoice. The department responsible can process the dispute case
immediately. If the result of the dispute case processing is such that the objections
of the customer are unjustified, the corresponding status of the dispute case leads
to the customer appearing on the worklist again. The invoice is relevant for
receivables management again.

 If the collection specialist cannot reach the contact person, or the contact person
requests that the collection specialist calls back, the specialist can create a
resubmission. On the date specified the customer appears on the worklist again.

 After the customer contact has been carried out, the contact is summarized and
documented. The system creates a standard note and adds all promises to pay,
dispute cases, and resubmissions created to the customer contact. The collection
specialist then enters a Contact Result and returns to the worklist. There he prepares
the next customer contact.
PROMISE TO PAY PROCESS
 Promises to Pay is part of the function Process Receivables.Documents
a customer’s agreement to pay an invoice. Each promise to pay is
assigned to exactly one invoice and there can only be one promise to
pay for each invoice.
 Employee can then document the result of this initial contact in the
system e.g. a promise to pay a single invoice or multiple invoices can be
documented with the amount and date promised, contact information
and text notes, and can later be traced at the invoice level.
 Unmet promises to pay are automatically noted ‘broken’ or ‘partially
kept .
 Promises to pay that are met in their entirety are noted with the
corresponding status, and the system can close them automatically.
STATE AND STATUS

 Open: The customer has not paid and the agreed Promised For date (plus tolerance
days) has not yet been reached, or the periodic valuation has not yet been carried
out.
 Broken: The customer has not paid, the agreed time for the incoming payment
(Promised For date plus tolerance days) has been reached, and periodic valuation
has been carried out.
 Partially Kept: The customer has paid part of the amount promised within the
agreed time
 Kept: The customer has paid the full amount promised within the agreed time.
 Withdrawn: The customer withdraws the promise to pay or opens a new promise
to pay.
CONT..
The status displays the technical status of the promise to pay:

 In Process: This status is created automatically when you create a new

promise to pay. The promise to pay can be evaluated and updated with
the incoming payment.

 Confirmed: This status is created automatically when a promise to pay

is withdrawn or renewed. The promise to pay can no longer be evaluated
or updated with the incoming payment, and cannot usually be changed
again.

 Voided: The processor must set this status manually. The promise to pay
can no longer be evaluated or updated with the incoming payment, and
cannot usually be changed again.

Notes:
 The term "active promise to pay" is used also in SAP Collections
Management. Active promises to pay have the status "In Process" - they
are "actively waiting" for updates from financial accounting and can be
evaluated.
CONFIRM PROMISE TO PAY

 FDM_P2P_CONFIRM program sets promises to pay

automatically to "Confirmed" if the corresponding
invoice is cleared and it is not expected that the invoice
will be reopened. Therefore the selection criteria contain
the "Invoice Cleared Since ... Days" field.
 When you have confirmed the promise to pay, the
process integration with SAP Financial Accounting is
closed.
GENERATION OF WORKLISTS
TRANSFERRING DATA FROM ACCOUNTS RECEIVABLE

 Prerequisite for the generation of worklists: Transfer of FI key figures from accounts
receivable accounting.
 Initial data transfer:
Transfers the data of all company codes that are "involved“ in SAP Collections Management.
The transfer activates the delta update.
 Periodic data transfer:
Only new or changed data is transferred (delta transfer).This option is used for regular
transfers from accounting.
 Data transfer by selection:
This type of transfer is used in exceptional situations in order to regenerate the data of one
or several specific customers in SAP Collections Management.
GENERATING THE WORKLIST ENTRIES
CONFIGURATION AND END USER TESTING
ACTIVATING PROCESS INTEGRATION

Before you can use SAP Collections Management in SAP Accounts

Receivable Accounting, you must first activate the process
integration. The process integration from SAP Collections
Management is not activated by default.
RECORDS MANAGEMENT SYSTEM (RMS)

 SAP Collections Management uses functions from Records & Case Management
for promises to pay. The standard RMS for SAP Collections has the RMS ID
UDM_COLLECTIONS.
 SAP recommends that you use one RMS ID only. You must use the RMS ID
UDM_COLLECTIONS to use the element types shipped with the system.
 The case type is the central feature of a promise to pay and summarizes various
features in Customizing.
 SAP provides the F_PP case type as a Customizing example. SAP recommends that
you create a customer-specific case type by using the standard case type as a copy
template.