collections management
DESCRIPTION
Collections ManagementTRANSCRIPT
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Collections Managementbased on SAP for Utilities New FunctionsMonika Bloching, SAP AG
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? SAP AG 2006, Title of Presentation / Speaker Name / 2
Note that the new collections functionality presented in thefollowing slides is a preliminary version and not subject to yourlicense agreement or any other agreement with SAP. This documentcontains only intended strategies, developments, and functionalitiesof the SAP product and is not intended to be binding upon SAP toany particular course of business, product strategy, and/ordevelopment. Please note that this document is subject to changeand may be changed by SAP at any time without notice.
SAP assumes no responsibility for errors or omissions in thisdocument
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? SAP AG 2006, Title of Presentation / Speaker Name / 3
Topics
Additional Flexibility in Dunning
Responsible Agents / Teams
Workload Balancing
Worklist Management
Processing of Work Items
Promise-to-pay / Payment Arrangements
Collection History / Success
Analytics
Appendix: Using BRF
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Collections Management - Overview
ExecuteCollectionStrategies
DetermineAgents/Teams
BalanceCapacity
Supported functions Integration with
Business RulesFramework brings fullflexibility regardingactivity determination
Supported functions Collections organiza-
tion can be set up inSAP OrganizationalManagement
Tasks, rules andresponsibilities areused to determine theresponsible team oragent
Supported functions Capacity for each
activity and teamand/or agent can beset up
Available capacitiesare taken into accountin activity determina-tion
Priority assignmentthrough BusinessRules Framework
ManageWork Lists
Supported functions Release of work lists Monitoring of
collections progress (Re-)assignment of
work items (Re-)prioritization of
work
Process WorkItems
Supported functions Processing of work
items in theinteraction center
Promise-to-pay Collection fact sheet Collection progress
Issue correspondenceEtc.
Execute Activities:
Measuring Collections Success
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Parameters for Collection Decisions (current solution)
DunningProcedure A
Days in arrears>= 10 AND
last level = 0 ANDfrequency >= 7 daysAND amount >= 10
Days in arrears>= 20 AND
last level = 1 ANDfrequency >= 7 daysAND amount >= 10
Days in arrears>= 28 AND
last level = 2 ANDfrequency >= 5 daysAND amount >= 10
Amount> 10
Amount> 100
Amount> 500
Creditw.> 0
Creditw.> 25
Creditw.> x
Level 1No InterestCharges: 5
Level 3Interest: 4 %Charges: 5
Activities
Reminder call
Activities
Dunning noticeReminder call
Dunning A
ctivity Run
Dunning Proposal R
un
Integrated Score fromCredit Management
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Dynamic Determination of Collection Activities using BRF*)
Collection Strategy A
Rule Set
Expressions:
Actions:
(Result of) PreviousCollection
Activity
Openamount
CollectionAmount
RiskClass
Age ofdebt
Etc.
Get Data
Formula
FunctionModule
Logicaloperators
Mathematicalfunctions
Date / timefunctions
Etc.
Function FKK_XXX
IF RISK-CLASS =HIGH AND
COLLAMOUNT >..
NEXTSTEP =SPECIAL_TREATMENT
Return Result
Return Score
Issue Message
Event
*) Business Rules Framework
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CollectionsTeam 1Collections
Team 1
Collections Embedded in Organizational Structure
? Multiple independent collectionsorganizations can be set up
? Teams or individuals can bedetermined based on tasks andresponsibilities
? Taking into account absence ofagents
? Automatic determination andmanual intervention by collectionmanager
? Allowing workload balancing
Collection CenterRegion West
Postion:Collection Manager
Sandy
Responsiblefor CollectionsIn Region West
CollectionsTeam 1
CollectionsTeam 2
Postion:Team Lead
John
Responsiblefor PrivateCustomers
Postion:Collection Agent
CathyPostion:Collection Agent
Fred
For customersrange A-K
Responsible
For bankruptcustomers
Responsible
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Responsible Determination
Standard Tasks and Rules
? Collection Center Responsibility for example based on business partner country, type of
business partner
? Collection Unit Responsibility for example based on collection activity, type of business
partner, risk class, postal code
? Collection Agent Responsibility based for example on business partner ID, contract account,
contract, collection amount
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Tasks of the Manager Transaction
? Create new worklists
? Release new worklists
? Select worklists
? Update attributes of a worklists
? Select workitems
? (Re-)assign workitems to an agent or to a unit
? Unassign workitems
? Cancel workitems
? Reopen workitems
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Created from To
Display Currency
Worklist ID End Date Closed
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SAP
Net
Wea
ver/
XI
SAP ERP
Telephony DiallerEmail ServerFax Server
Interaction Center / WebClient
CollectionsWorklist Management
Multi-Channel Communications
Phon
e
Fax
Lette
r
E-m
ail
Archive
Worklist Management based on SAP NetWeaver
Multiple processingoptions
Worklist can beprovided to agents/teams for manualprocessing
Worklists can besubmitted to externalsystems (such asdiallers) via SAPNetWeaver / XI11
11
11
22
22
22
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Worklist Overview and Collectors Progress
UnholdHold DialHang Up EndTransfer Dial Pad Not Ready ?Ready Wrap Up
My Collection Work Lists
Worklist Details My Work Progress
Worklist Description
Creation Date
Ranking Rule
Text
Mandatory reminder calls week 01
02.01.2006
Max 255 Char.
Oldest open items first, independent of risk
| |
Worklist Progress
Mandatory reminder calls week 01 10.10.06 500 400 100 60 125.385,00 EUR 30 %
Warning List Januar 15.02.06 1000 1000 0 0 261.615,00 EUR 0 %
??
??????
Worklist Overview Search Worklist Items
Total * 1500 1400 100 60 287.000,00 EUR 10 %
Description Due date Total entries Unassigned My items My open items Total amount Curr. % assign. to me
Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectionCollection WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter
UnholdHold DialHang Up EndTransfer Dial Pad Not Ready ?Ready Wrap UpAccept Reject
Fred Smart/New York City NY 10035
Customerin Collections Phone Outbound 0170 3699965Connected2:40 / 2:40 Phone 1
Interaction Center Lisa Miller
Assign next items automaticallyMy items
My progress today Worklist progress
# of items Percentage AmountStatus
Completed 40 40 % 7.200 EUR 29 %Resubm. 10 10 % 2.800 EUR 11 %
Perc. of Amt.
%
In process 50 50 % 15.000 EUR 60 %
Closed 0 0 % 0 EUR 0 %
New 0 0 % 0 EUR 0 %
0 %Cancelled 0 0 % 0 EUR
Total items 100 100 % 25.000 EUR 100
DRAF
T!
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Work Items in a Work List
UnholdHold DialHang Up EndTransfer Dial Pad Not Ready ?Ready Wrap Up
My Collection Work Lists
Worklist Details My Work Progress
Worklist Description
Creation Date
Ranking Rule
Text
Mandatory reminder calls week 01
02.01.2006
Max 255 Char.
Oldest open items first, independent of risk
| |
Worklist Progress
Mandatory reminder calls week 01 10.10.06 500 400 100 60 125.385,00 EUR 30 %
Warning List Januar 15.02.06 1000 1000 0 0 261.615,00 EUR 0 %
??
??????
Worklist Overview Search Worklist Items
Total * 1500 1400 100 60 287.000,00 EUR 10 %
Description Due date Total entries Unassigned My items My open items Total amount Curr. % assign. to me
Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectionCollection WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter
UnholdHold DialHang Up EndTransfer Dial Pad Not Ready ?Ready Wrap UpAccept Reject
Fred Smart/New York City NY 10035
Customerin Collections Phone Outbound 0170 3699965Connected2:40 / 2:40 Phone 1
Interaction Center Lisa Miller
Assign next items automaticallyMy items
My progress today Worklist progress
# of items Percentage AmountStatus
Completed 40 40 % 7.200 EUR 29 %Resubm. 10 10 % 2.800 EUR 11 %
Perc. of Amt.
%
In process 50 50 % 15.000 EUR 60 %
Closed 0 0 % 0 EUR 0 %
New 0 0 % 0 EUR 0 %
0 %Cancelled 0 0 % 0 EUR
Total items 100 100 % 25.000 EUR 100
DRAF
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P2P Open
Open item
Promise-to-pay
EvaluationRun
P2PFulfilled P2P Broken
CorrespondenceP2P initiated
Correspondence Update Credit-worthiness
Execute custom-specific activity
CollectionActivity Run
Worklist entryIf P2P is broken theoriginal open itemswill be evaluated
again by the collectionactivity run
Promise-to-Pay Overview
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Temporarily no money
P2P-Category
Reason Code No printingPrint ParametersPromise to Pay with items
Create Cancel
Calculate interest
Promise to pay
Select items for Promise to Pay
DRAF
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Interaction Center Based UI for Collectors: Payment Promise
UnholdHold DialHang Up EndTransfer Dial Pad Not Ready ?Ready Wrap UpAccept Reject
Payments
Other Clearing
Promised (partial) Payments/Payments |Original Items
PaymentsPromised (partial) payments
17.01.2006
Value Date
USD
Currency
0.00
OtherClearing
53.000000003600
PaymentAmountDocument
USD
USD
USD
Crcy
??????
Visa,***3123, 12/2007
PaymentVia
53,001.01.2006
53,001.02.2006
53,001.12.2005
AmountPromiseDate
Delete Payment Data Change Payment Data
Back Save WithdrawSubstituteChange Status Change
General Data | Correspondences
Creation Date
Created by
146.00 USD
13.00 USD
0.00 USD
Total Item Amount
Total InterestAmount
Total Charge Amount
18.11.2006
03.02.2006Next check
Reason
53.00 USD
0.00 USD
Check of Fullfillment Rate
Total Promise to Pay Amount
Status/CurrentFulfillment rate
Category
159.00 USD
Not calculated
Still open 119.00 USD
Currentlydue 66.00 USD
Lisa Miller
3 part. payments
Fred Smart/New York City NY 10035
Customerin Collections Phone Outbound 0170 3699965Connected2:40 / 2:40 Phone 1
Monday, January 9th 2006 5:43 pm
Interaction Center Lisa Miller
Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectonCollecton WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter
DRAF
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Processing Work Items
Additonal functions
? Collection fact sheet
? Extended collections history
? Action list to support collectors? Automatic resubmission of work
items? Link to respective functions
? Additional BI extractors
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Collection Fact Sheet - Sample
UnholdHold DialHang Up EndTransfer Dial Pad Not Ready ?Ready Wrap UpAccept Reject
Fred Smart/New York City NY 10035
Customer in Collections Phone Outbound 0170 3699965Connected2:40 / 2:40 Phone 1
Monday, January 9th 2006 5:43 pm
Interaction Center Lisa Miller
Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectonCollecton WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter
Fullfill-ment
brokenUSD900,00800,0010023456
Date whenbroken
paid
open
Status
USD
USD
Crcy
200,00
1200,00
Totalamount
0,00
900,00
Openamount
10020644
300,0001.11.200612344456
Nex dueamount
Next duedateDocument
0,00
0,00
0,00
0,00
0,00
Open Payments
USD
USD
USD
USD
USD
Currency
Agreement 2
Contract 1
Agreement 1
Fred Smart
Description
10,00300,00No contract20,00800,00510000016001001Contract
400,00
1.100,00
2.500,00
Open Amount
150,00
30,00
250,00
AmountDue
510000016002Business Agreement
510000016001Business Agreement
5100000160Account
NumberCategory
Collection Workitem | Collection Strategy | Additional Collection Information
More Details
Risk Class
Locked due to
Exposure
Standard Address
Duration/Start of Partnership
Age / Date of Birth
Additional Information | Credit Segment | DisputesPromise to Pay | Last Interactions | Collection History
Collection Step First (friendly) Reminder Call Reminder Call
01.04.2006
Category
Trigger amount
Remaining Amount
Released
EUR
EUR
1.000,00
1.000,00
Status/ Mandatory
Processing Deadline
yes Creation Date 29.03.2006
Mo. Fr. 08:00 12:00 ?
16.02.2006Last Coll. Contact
Work item update | Notes
Sarah Cash * (if not unique)
Central Collection Department
Save Cancel
?Back 1 | 2 Forward?
Number of Promises broken within last 12 months ? Go
Fred Smart
X
04.07.2006
100%
Score
Acc. with Special Attention
Limit
36 Years 31.07.1969
175
Risk of Fraud
Very high Risk
400,00250,00
01.01.19987 Years
USDUSD
New York City NY 10035
Collector /Unit
Collection Center
Reassignm. Reason
Resubmission Date
Contact person
Contact hours
Contact person for all master data groups
Account Overview | Period Balances Sheet | Account Balance | Document Display
Disp. Locks Inst.
DRAF
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Extended Collections History
Description Currency Original Amount Still Open
Collection Run, 22.01.2007 EUR 29,50 29,50
Open Item 11310074/0001, due 20.12.2006 EUR 29,50 29,50
Collection Activity: Reminder Call
Reminder call, status: in process
Collection Run, 08.01.2007 EUR 59,60 29,50
Open Item 11310074/0001, due 20.12.2006 EUR 29,50 29,50
Open Item 11300342/0001, due 20.11.2006 EUR 30,10 30,10
Collection Activity: Reminder Letter
Reminder letter, status: printed
Incoming call, 11.01.2007
Promise-to-pay, status: broken EUR 59,60 29,50
Payment 8834590, 15.01.2007 EUR 30,10
Hierarchical display of collections details
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Appendix:
Using BRF
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? Application? An application is the software component that uses the BRF.
? Application Class? An application class is the highest level of organization in BRF.? All BRF customizing components must belong to an application class.
? Rule? A rule consists of exactly one expression whose functional result can be
either true or false, and of at least one action to be performed if theexpression is true.
? Expression? On the basis of a freely definable (calculation) rule, data of an
application object or data of objects related to the application object (orindeed any data at all) is processed, delivering a result of any (primitive)type.
Overview: Terminology I
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Overview: Terminology II
? Action? Any manipulation of any data sets that makes sense from a business
point of view and that can be performed technically.? Actions can be dependent on a expression, in which case it is part of a
rule, or can be specified to execute unconditionally within an event.? An action may or may be part of a rule, but must be specified within an
event in order to be executed.
? Event? An event triggers rule processing. More precisely: rules are (usually)
assigned to an event.? Events are typically triggered at suitable points in the application. At
these events, rules that have been assigned through configuration arethen evaluated.
? Unconditional actions can also be specified in an event.
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Overview Rules Definition
Dat
a R
eque
stAll data available in the system can be used toform the basis for the determination of theappropriate 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?
Decision Tree? The expression type of the
decision tree is used for thederivation of the collectionstep and the evaluationnumber
? All data requested can beused in the other expressiontypes (Ranges, Formulas,Truth Table etc.) to define aconditional step within thedecision tree. The result ofeach step is either false ortrue
? As target you define within thedecision tree the collectionstep
Col
lect
ion
Step
Collection steps are defined as constants:? Reminder Call? Enforcement Call? Enforcement Workitem?
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Data Request - Examples
Formula SY-DAT minus LATEST DUE DATE from Items Dunning History ($FKKMAZE-FAEDN withaggregation MIN)
Minimum Days inArrears
PPSTA = NOTFULFILLED
COUNTPPSTADFKKPPNumber of BrokenPromise-to-Pay
IND_SECTORBUT000Industry Code
POST_CODE1FKK_GPSHADPostal Code
MAXMBETM$FKKMAZEHighest Amount ofItems within DunningHistory
MSALM$FKKMAKODunning Balance
BONIT$FKKMAKOCreditworthiness
Where-Condition
AggregationFieldTableAttribute
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Configuring the decision tree (1/3)
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Configuring the decision tree (2/3)
FeaturesThe maintenance type determines iftargets can be maintained only on theend node or on any node. For thedetermination of the collection step atarget shall only be maintained on theend node of a branch.
When setting up the decision tree youcan create new nodes using thefollowing options: Create Node as First Subnode
Create Node as Last Subnode
Create Node at Same Level, After
Create Node at Same Level, In Front
Delete Node, including Subnodes
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Configuring the decision tree (3/3)
FeaturesConditions are Boolean Expressions.From the decision tree you can: Select Existing Condition
Create New Condition
Remove Condition
Navigate to Condition
Targets represent the collection steps.From the decision tree you can: Select Target of Same Type
Select Target of Different Type
Remove Target
Create New Target
Navigate to Target
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Configuring the action for the collection step & eval. no.
FeaturesIn this action you can assign theexpression for deriving thecollection step
FeaturesYou can use the existingexpression types to define a pre-defined valuation number forprioritizing your worklists.Additionally you can enhance thedunning history header table tocover additional scores such aspayment history, invoice historyetc. which can be used as a valuevector.
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Create and Assign Event per Collection Strategy
FeaturesWithin the event the individualrules are maintained.
If you need additional data whichis not part of the context you caninitialize additionl data for thecontext.
Within the event you have toassign the action for determiningthe collection step and the score.
FeaturesApplication class and event then need to beassigned to the collection strategy.
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