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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Version: #.0
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Contents
Document Control............................................................................................. i
Revie(ers.................................................................................................... i
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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