advanced collections strategies

8/14/2019 Advanced Collections Strategies

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MD.055 Report FunctionalSpecification

Advanced Collections CustomScore Engine

Author: Lanre Ladipo

Creation Date: May ! "0#0

Last Updated: May #$! "0#0

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Company Confidential For internal use only


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Contents

Document Control............................................................................................. i

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Contents........................................................................................................... ii

&ntroduction.................................................................................................#*asic *usiness +eeds..................................................................................#Assumptions................................................................................................"*usiness Rules 'o( components (ill ,e scored..........................................%Application Setup Re)uirements.................................................................%Concurrent -rogram -arameters.................................................................-rogram /utputs.........................................................................................E1ception 2andling.....................................................................................

/pen and Closed &ssues for t'is Delivera,le.....................................................

/pen3Closed &ssues.....................................................................................

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ntroduction

/racle Advanced Collections module provides functionality and tools needed to managecollections processes effectively in today4s comple1 economies! gro(ing ,usinesses! and

ncreased glo,aliation. 6'e module (ill allo( t'e credit group to improve overall cas' flo(,y ,etter management of customer interactions! focusing on priority accounts! timelyaccount revie(! and centralied environment of credit data./ne 7ey tool in Advanced collections is t'e t'e Scoring Engine. 6'e collections scoringengine 'as (eig'ted components t'at drive creation of delin)uent! pre8delin)uent or currenransaction in t'e system. 6'is allo(s t'e collections department to designate an

appropriate collections strategy or dunning plan. Alternatively! customers can ,e scored,ased on certain criteria and allo(s collectors to focus on accounts (it' largest ,alanceso(ed t'at impact DS/! AR turnover and most important cas' flo(

%asic %usiness Needs

Advanced Collections module 'as preconfigured score engine componenents.Security 6ec'nologies Credit Department assessed seeded score components and (ould li7eo create ne( scoring engine ,ased on specific ,usiness needs. /racle allo(s collections

organiations to create or configure any num,er of scoring components t'at are specific to,usiness needs.

S6 Credit team in alignment (it' t'e Corporate Credit Leaders'ip team and 9CF pro:ect 'asdefined a scoring engine model t'at ,est meets ,usiness practices for effectivie collections.6'e model provided 'as (eig'ted score components on ('at data to ,e scored.

Component

Factor 9eig't Range Score +otes&ears in %usiness 0.# #00 #5;


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850 %5?; 0

$R Ris) Rating 0.#5 #00 # 8 % 0 Account Level

0 $ 0

"5 5 0

8#00 = 0

Average Das Late 0.% #00 >5 0*ill 6o AccountLevel

5 =8#0 0(ould li7e to seeformula to valida

50 ##8"0 0 calculation

#0 "#8%0 0

850 %#; 0

#.0

Customer Score Range Ran7ing*coring Ran)ing

Low Range #igh Range *tatus

0 $0-oor Customer Rating. 2ardStrategy

$# $Avarage Customer Rating..Medium Strategy

5 #00@ood Customer Rating.. SoftStrategy

-oor Customer Rating.. 2ard Strategy

Avg Customer Rating.. Medium Strategy

@ood Customer Rating.. Soft Strategy

An e1ample*coring +ngine Calculator

ComponentActualValue Value *core

,eight

*core


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-ayment Sc'edule Class of De,it Memo! C'arge,ac7! or &nvoice

Amounts Due more t'an 0

-ayment Sc'edule not paid are not in Dispute

Custom score components can ,e ,uilt and integrated (it' e1isting -arty scoring engine

Since ne( scoring components and Filter Bie(s re)uire SL statements or functions a solidtec'nical (it' AR 7no(ledge is re)uired

%usiness Rules how components will be scored!

*coring Ran)ing

Component Parameter Rule

Customer


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AR Setups

Add Corporate &R Ris7 Rating in ARGLoo7upGCodes see attac'ed

&R Ris7 RatingMet'odology.pdf

Customer Setup

Add DFF field for


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Add Ris7 Rating on all active customers Ise Code value in calculations of &RRis7 Rating component

Inder S6 IS AR Customer Admin Responsi,ility. uery a Customer .

+avigate to t'e -rofile 6ransaction 6a,. &R Ris7 Code is assigned in t'e Ris7Code field

Advanced Collections *etups

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Create ne( scoring engine Ise Collections 26ML Administrator

Add Components Customer


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Re8use seeded -arty Scoring Filter to assign scoring engine

Concurrent Program Parameters

After scoring components are defined! add to engine and run t'e follo(ingconcurrent programs to generate score

Inder S6 IS Collections Forms Administrator! Su,mit Single Re)uest to Run &ENScoring 2arness and pass follo(ing parameters

Runs engine for *ill 6o

" Runs engine to create delin)uencies

# Runs engine to Score Customer-arty

Run &EN-opulate Iniversal 9or7 ueue I9

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Program 4utputs

6otal calculated score (ill ,e vie(a,le in Iniversal 9or7 ueue in t'e CollectionScore field

+5ception #andling

&f Scoring Engine 2arness program fails

All t'e standard e1ceptions s'ould ,e 'andled programmatically in -L3SL procedurand t'e appropriate message in log file3output file.

An error report s'ould ,e produced giving t'e details of t'e erroneous data records6'e report s'ould state error message for *usiness Isers to ta7e corrective action.

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4pen and Closed $ssues for this Deliverable

4pen3Closed $ssues

D $ssue36uestion Resolution3Response Response-rom Action

#. @ood customer

-re delin)uent Calls until (e get payment confirmationCall ,ac7 if (e 'ave a ,ro7en promises.f no payment confirmation (it'in t'e mont's getting approval from 6L;*CM to move it to t'e secondscoring average

". Fair customer

-re delin)uent Calls until (e get payment confirmation#stdunning letterCall after #0 days of sending t'e #stletter"nddunning letter after "0 days of t'e first letterCall after #0 days after t'e "nddunning letter%rdDunning letter #0 days after t'e "nddunning letterCollection Agency Collection Agency process to ,e follo(ed

%. *ad customer

-re delin)uent calls if payment confirmation (e stop 'ere ot'er(ise follo( ,elo(

#st

dunning letterCall after #0 days of sending t'e #stletter"nddunning letter after "0 days of t'e first letterCall after #0 days after t'e "nddunning letter%rdDunning letter #0 days after t'e "nddunning letterCollection Agency Collection Agency process to ,e follo(ed

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C C fid ti l F i t l l

advanced collections strategies

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