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Lamot, MechelenOctober 12, 2011
SAP Collections Management to ease CashCollection
A fast track implementation at a Belgian producer of Aluminium
profiles
Christophe Claes
Alexandra Lecuyer
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Agenda
1. Company Presentation
– CSC
– The client2. SAP Collections Management to ease Cash Collection
– Mission and Objectives
– Scope
– Current tools and process – CSC challenges
– SAP Collections Management implementation
Approach
Solution Expected Results
3. Lessons Learned
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CSC Presentation
93,000 employees active
in 90 countries
World leader in leveraging IT to develop business
solutions and services for our customers
$16,2B (USD) in revenue for the 12 months
ended December 31, 2010.
Serving 15 industrieson six continents
Permanent CSC Locations
Other Client Engagements
SAP Pinnacle Awards for Customer Satisfaction and Sustainability (2010)
5 SAP papers selected at SAP World Tour Meets Sapience (2010)
Top 5 World’s Most Admired Companies, IT services (Fortune Magazine, 2011)
Leader, SAP implementation providers (Forrester Wave,2009)
Founded in1959
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Client Presentation
• Client’s presentation (NDA at this stage):
• Belgian producer of Aluminium profiles
• Fast Growth
• International expansion
• Client’s challenges
• A lot of overdue invoices due to cashflow problems
• More difficult to collect the old outstanding invoices
• Increased bad debt expense
• High DSO
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Mission and objectives
• Mission :
• Create a template of standard SAP Collections Management
(part of a Global European SAP implementation) for Pilot countryand roll it out to other countries
• Key Objectives of the tool:• Support the Cash collection teams in their daily duties (contact
customers to chase for payments, record and track customer
contact,..),
• Allow the management to follow the result of the actions taken
• Low cost but high impact implementation
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Scope
• Keep the Credit Management in the traditional SAP FI& SD
modules and keep the door open for future SAP Dispute
Management implementation
• Only operational companies dealing with external customers
are taking part in Collection Management
• Countries involved:
– Pilot: 2 entities in Belgium
– Roll out: UK, France, Poland, La Reunion
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Current Tools Overview
• Current Cash collection tools:
• Data are stored in different tools:
• ERP (non SAP) for:
• historical and open items data
• client contact detail
• cash collection data
• ....
• BI tools (non SAP) for:
• actions
• working list with all actions
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Current Process Overview
• Current Cash collection Process:
• The same customer has a different customer number in each
entity• Each collection specialist is assigned to a customer
• The worklist is split per customers based on the actions entered
previously
• The actions are not prioritized in the worklist
• The actions are not compared to the behaviour of the customers
(e.g. Payment)
• There is no payment plan functionality
• There is no written procedure
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CSC Challenges
• CSC’s Challenges:
• Assure high added value with low implementation cost
• Missing like payment plan functionality in SAP EhP 4.
Workaround was investigated and built. In the meantime it has
been resolved with the implementation of EhP5.
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SAP Collections Management
- Implementation Approach
• Global Template: standard approach
• The solution was configured mostly in a standard way
• The design, build and test phase took less than 2 months
• Start up planned in January 2012
June 2011May 2011Lead-time
Common
Design
Common
Build and TestRoll out
Jan 2012
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SAP Collections Management
– Solution Overview
• The FSCM Collections Management solution focuses on the
key business process of "cash collection".
• It allows to:
• support the evaluation, identification and prioritisation of the
clients
• manage the collection of receivables
• manage the cash collection department
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SAP Collections Management
– Solution Description
• 3 different roles have been identified for this client:
• Collection Specialist responsible for collecting the Cash
Access
Worklist
Prepare
customer
contacts
Contact
Customer
• Personalized
worklist
automatically
created
• Search function
• Key customer
data: FI
• Previous contactdetails
• Contact Person
details
• Promises to pay
• Resubmissions
• Detail on
Customer
contact
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SAP Collections Management
- Solution Description
Amount
promisedPriority Amount to
be collected
Amount
dunned
Detail per Business Partner: open items,
payments, Promise-to-Pay, previous contact,….Business Partner Master Data
Risk
category
Credit
limit
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SAP Collections Management
- Solution Description
• Collection Manager responsible for controlling the cash
collection process
Define
collection
strategies
Maintain
collection
groups
Adjust BP
Master Data
Supervise
collection
process
• Create, adapt,
assign collection
strategies
• Assign specialists
to collection
groups
• Enter substitutesfor specialists
• Assign collection
Specialists to BP
• Temporary
Assignments
• Check status of
worklist
processing
• Re-assignworklist items
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SAP Collections Management
- Solution Description
Collection Group and Specialist
assigned to BP
Strategy defined
Strategy assigned to
Collection Group
Collection Supervision
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SAP Collections Management
- Solution Description
• Collection Management Administrator responsible for data
synchronization and worklist creation
Replicate
customer
master data
Transfer
data from
Accts .Rec
Create
worklistsMonitoring
• Master data
synchronization
• Contact persons• Collections Mgt.
specific data
• Initial transfer
• Periodic transfer• Selected transfer
• Create worklist
Items
• Monitor master
data
synchronization• Monitor parallel
runs
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SAP Collections Management
- Solution Description
Customer
Master Data incl.
Contact person
Business
Partner (BP)Customer
Integration
Accounts Receivable SAP Collections Mgt
1
2
SAP AccountsReceivable
• Open Item Data
• Dunning Data
• Payment Data
• Customer Data
Send FI-AR
via
Business Partner
Key Mapping
SAP CollectionsMgt
Replicate customer master data
Transfer data from Accts .Rec.
3 Create worklists
• 1 customer = 1 unique
customer number = 1 unique
Business Partner
• Automatic creation of BP
• Each specialist has his
own worklist
Select
business
partners
Valuate
according
to strategy
Assign
Items to
specialists
Store
worklists
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Expected Results
Working
capital
AR
AP
InventorySales
€
1. Standardize and optimize process
2. Follow up cash collection actions in a
central place
3. Keep the cash collection cycle as short as
possible
=> Reduced working capital
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Lessons learned
• A short design phase is feasible but Business Key User is
required to define:
• a clear Organisational Structure
• the proper collection strategy
• Ensure correctness of customer contact details in Master
Data• Reporting for Collections management is to be extended with
SAP BI reporting functionality
• Implementation time can be short if standard can be kept• Ehp5 brings a lot of value: payment plan, resubmission at the
level of an invoice, correspondence to the BP
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Thank you!