SAP Receivable Management
Credit & Collections
CRF SAP User Group Meeting Manhattan Beach, CA
March 18, 2013
• Bayer AG • Company Profile 2013 Slide 2
Full year sales: €39.8 billion
110,500 employees
291 subsidiaries Headquarterd in Leverkusen, Germany
U.S. Headquarters – Pittsburgh, PA As of December 31, 2012
Key Locations / Regions
The Bayer Group is a global enterprise
with companies in almost every country
Europe
Latin America / Africa / Middle East
North America
Asia / Pacific
North America – Business Structure
Breakdown of Total Sales by Subgroup 2010
EUR
8.2 billion
HealthCare 56 %
CropScience 19 %
MaterialScience 25 %
As of December 31, 2010
Bayer HealthCare
Animal
Health
Consumer
Care
Pharma-
ceuticals
Diabetes
Care
Bayer
HealthCare
Bayer Healthcare, LLC Animal Health
Customer base:
Distributors
Veterinarians
Pet Specialty Retailers
Bayer Healthcare, LLC Animal Health
65,000 Vets in U.S.
45,000 Accounts - ~20,000 with AR
balances
Approx. 42,000 orders per month are
processed
Average invoice <$1500
Approx. 8% of sales orders go on credit
hold
Bayer Healthcare, LLC Animal Health
Process 15,000 checks per month
7500 credit card transactions/mo.
Use Paymetric for processing and credit
card storage
Send monthly statements and dunning letters
Use Billtrust for mailing of statements and
dunning letters
Agenda FSCM Credit Management
Global Credit Management Cockpit
Global Credit Management View
FSCM Collections
Page 9
Agenda FSCM Credit Management
Global Credit Management Cockpit
Global Credit Management View
FSCM Collections
Page 10
FSCM Credit Management
The Data portfolio within FSCM Credit Management is split into two sections:
General data
o Address data
o General Credit Settings / Information
Credit Segment Data
o Company Code specific Credit Data
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Scorecard Check Rule
Risk Class Credit Specific Notes
Customer group Financial / Non-Financial Information
Credit Limit Credit relevant Assignment
Exposure Control Data (Block / Special attention)
Payment behaviour
FSCM Credit Management –
General Data
The General data section of the Business Partner provides information about:
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• Address • Bank / Credit Card Details
• Financial / Non
Financial Information
FSCM Credit Management –
General Data II
Within the “Credit Profile tab” you can maintain
the following details of the Customer:
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Risk Class: The Risk class clusters the
Customer Portfolio. Depending on the Risk class
the credit check criteria will be tighter.
Score Card: you can either select a local Scorecard
or keep the global score card which will be set by
default when a business Partner will be created
Score: will be calculated
depending which Score
card is chosen.
Check Rule / Customer group: Check rule identifies either
the Credit Check will be performed on this customer or one
level above in the hierarchy. Customer Group can be used
to cluster the customer and/or to have different Credit Check
values
FSCM Credit Management –
General Data III
Page 14
The following values will be available (Credit Profile)
Scorecard Check Rules
Local Scorecards
Global Scorecard
Y01 – Credit Check account
Y02 – Credit Check will be performed
on a higher Account (dep. on hierarchy)
Risk Class Customer Groups
High Risk
Medium Risk
Low Risk
Intercompany
Default (Initial)
Small
Medium
Large
FSCM Credit Management –
General Data IV
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Assessment Data tab:
Non-Financial Data: The first two lines can be
maintained by the user. Global and Local Score
only shows the Scorecard values
Controls: The User can
create/delete entries
on a yearly basis and
switch between different
years
Financial Data: Financial
Data can be entered and
Changed. Rations and
sums will be calculated
automatically
FSCM Credit Management –
General Data V
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The following financials can be entered by the user (Assessment Data)
• Cash
• Accounts Receivable
• Inventory
• Accounts Payable
• Current Assets
• Current Liabilities
• Total Assets
• Total Intangible Assets
• Total Liabilities
• Net Worth/Ret Earn
• Goodwill
• Cash from Operations
• Sales
• Cost of Goods Sold
• Net Operative Profit/EBIT
• Interest Expense
• Net Profit/Loss
The following Values will be calculated automatically
Working Capital
Tangible Net Worth
Gross Profit
Quick Ratio
Current Ratio
DSO
A/P Days
Inventory Turnover
Interest Expense Coverage
CurrDebt -> NetWorth
TotlDebt -> NetWorth
TotlDebt -> TotlAssets
NetWorth -> TotlAssets
Gross Profit Margin
Operative Profit Margin
Net Profit Margin
Return on Investment
Return on Equity
Net Income as % Sales
FSCM Credit Management –
Credit Segment Data
Available Data on Credit Segment Level
Page 17
FSCM Credit Management –
Credit Segment Data II
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Credit Limit: Can be set by the user or calculated by the
system. The system will not overwrite the a manual set
Credit Limit. In the case that a Limit was set manual the
calculated Limit will be shown below for informational
reasons
Block / Special attention: Depending on the
Block reason the result could either be that an
order will be blocked or that the user can’t even
create the order. When the Special attention is
used the Credit check steps could be
performed in different order than in standard
credit checking.
FSCM Credit Management – Credit Segment Data III (Special Attention / Block)
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Special Attention Types
• <blank> no special attention needed
• ACC US AH: Autopay Credit Card
• BDW Bad Debt Write
• CED Collection Expense Due
• CIA Cash in Advance
• COR US: Credit Only Release
• DIR Direct Debit
• FDM Final Demand Letter Sent
• ICC US AH: Immediate Credit Card
• PAS Pass All credit checks
• RSK Risk Alert Received
• SCC US AH: Scheduled Credit Card
Block Reasons
• BA Bankrupt
• CA Cash in Advance
• DP Debtor in Possession
• DS Do Not Sell
• HD Hold All / Refer to Credit
• IN Inactive Customer
• PC Placed for Collection
• RB Rebate Customer
FSCM Credit Management –
Segment Data IV (Exposure)
Page 20
Click on the info button will open
the Exposure overview.
Double click on any category will lead
to the details. The following Categories exist
100 Open Orders
200 Open Invoices
300 Special Credit Exposure
400 Delivery Value
500 Billing Document Value
FSCM Credit Management –
Segment Data V
• Page 21
The tab Payment behavior key figures
provides a high level overview of
• Dunning
• Overdue item
• Payment history
• Key figures
FSCM Credit Management –
Segment Data VI
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On the tab „Additional Segment Data“
You will find organizational data as well as information
in regards to payment key figures
FSCM Credit Management –
Relationships - Hierarchy
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In the Section “Relationships” you can see the relations
between the customers (higher / Lower account of)
Remark/Attention: The Relation/Hierarchy itself is not the
trigger where to check in regards to a Credit Check.
This is steered by the Check rule (general Data section)
Credit Check
hierarchy
FSCM Credit Management hierarchy
FSCM Credit Management -
Credit Check Routine
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Limit, Block and Special
Attention type are set
on Credit Segment
level and independently
of the selected cust.
Group.
FSCM Credit Management -
Credit Check Routine
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Maximum Doc value,
Percentage and over-
Due days can be set on
the basis of a combi-
nation of Risk class
and Customer group.
But it is not
MANDATORY
Agenda FSCM Credit Management
Global Credit Management Cockpit
Global Credit Management View
FSCM Collections
Page 26
FSCM Credit Management -
Global Credit Management Cockpit
Page 27
The Global Credit Management
Cockpit offers the following
categories of interest:
- General BP Search
- Overview of Expiring Credit
Limits
- Blocked SD orders
- Increase of ADD
- Credit Limit Exceeded
Each category offers the user different
selection options which will be
shown in a different result list.
FSCM Credit Management - GCMC
Business Partner Search
• Page 28
In General the Business Partner search Tab
offers you to search for any criteria in the
Business Partner and provides a result list
which can be downloaded.
- Jump into the BP to maintain
Credit relevant Data
FSCM Credit Management - GCMC
Expiring Credit Limits
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Depending on your selection you
get a list of Business Partners
where the Credit Limit’s validity will
end soon. Out of the Result list
you can jump into the Business
Partner
If you set this flag the system will
exclude those customer‘s where
the validity is not relevant because
no Limit is defined (not zero).
FSCM Credit Management - GCMC
Blocked SD orders
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Depending on your selection you
get a list of Blocked SD Orders.
Out of the Result list you can
1. Go into the Business Partner
2. Go into the SD Order
3. Create a note which will be
attached to the order
4. Maintain a release order
5. Release an order
The following Release Reasons are available
Release Reasons
001 Credit limit reviewed
002 Payment status/history reviewed
003 Payment commitment received
004 Payment advice existing
005 Account within credit limit
006 Account current & within credit limit
007 Business decision or approval
008 Obligated to ship
009 Other (comment required)
999 Keep order blocked
FSCM Credit Management - GCMC
Increase of ADD
• Page 31
Depending on your selection you
get a list of Business Partners
where ADD has increased in the
past significantly (dep. On your
selection)
FSCM Credit Management - GCMC
Credit Limit Exceeded
• Page 32
Depending on your selection you get
a list of Business Partners where
Credit Limit has exceeded.
You can decide if you want to focus
on the horizon or the overall
exposure.
FSCM Credit Management -
Seasonal Credit Limit Increase
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Using the Transaction
/BAY0/FM_CR_SICL to maintain a
temporary increase of the credit
Limit (e.g. Promotion actions).
If there exists a temporary increase
this will be visualized in the Business
partner and the credit Check.
Agenda FSCM Credit Management
Global Credit Management Cockpit
Global Credit Management View
FSCM Collections
Page 34
• Go4One SAMBA FSCM Credit Management Training • September 2012 Page 36
• Go4One SAMBA FSCM Credit Management Training • September 2012 Page 37
• Go4One SAMBA FSCM Credit Management Training • September 2012 Page 38
Agenda FSCM Credit Management
Global Credit Management Cockpit
Global Credit Management View
FSCM Collections
Page 39
1. Roles and Processes
Collection Supervisor
Collection Specialist
Collection Group
Main Tasks:
Define or adapt collection strategies
Assign collection strategies to “Business
Partners
Supervise collection process
Main task is to process the daily work
list:
Prepare customer contact
Contact customer
Document customer contact
2. UDM_SPECIALIST
Via transaction UDM_SPECIALIST you access the work list, where all Business Partners are listed, who
fulfill at least one rule of the Collections Strategy and where the SPECIALIST (-> you) is maintained as
Specialist in Business Partner Master Data.
The Work list is generated automatically each day newly.
3. UDM_SPECIALIST
Via Icon “Assign item” the Collections Specialist can assign Business Partners to another Collections
Specialist of the same Collections Group.
Via Icon “Go to” the Collections Specialist can either jump into the worklist of another Collections
Specialist of the same Collections Group, or view a single specific other Business Partner.
4. UDM_SUPERVISOR
Via Icon “Assign item” the Collections Supervisor can assign Business Partners to another
Collections Specialist of any Collections Group.
Via Icon “Go to” the Collections Supervisor can either jump into the worklist of another
Collections Specialist of any Collections Group, or view a single specific other Business Partners.
Via Extras -> Display Statistics the Supervisor can view the current Statistic of Worklist entries per
Specialist and can eventually assign BPs to different Specialists.
4. Process Receivables
When double clicking on a Business Partner in the Worklist, the system jumps into the Process Receivable list,
which is similar to FBL5n (line item display) with additional information.
On “Tab-line”, you can view invoices (current displayed view), payments, created Promises to pay and Dispute
Cases, past Customer Contacts and you can view and create Resubmissions.
Below the “Tab-line” there are Icons with which you can create Promise to Pay and Dispute Cases.
The Layout of the item list can be adjusted, sorted etc. (as in FBL5n).
5.Process Receivables – Overview
Back on tab “Invoices” and after a refresh of the list (via Icon “Refresh” ) you can see that there
are now new Promises to pay and a new Dispute Case, which have been created on the slides
before.
Also in transaction FBL5n columns of Promises to Pay and Dispute Case information can be
displayed. Those information are given in “real-time”.
6. Process Receivables – Customer
Contacts Under tab “Customer Contacts”, all customer
contacts are documented.
If you have finished the contact with the
customer and created e.g. Dispute Cases or
Promise to Pay, you leave the Process
Receivables list via Icon “Back” .
The pop-up “Change Customer Contact”
appears and you are forced to give a contact
result.
There are already texts given in the lower part
for the created Dispute Case, Promise to Pay
and Resubmission which have been created.
you can add additional information and have to
save the result.
If you enters the Process Receivables list for
this Business Partner the next time, the text
from this customer contact is than displayed
under tab “Customer Contacts”.
Questions?
Presented by: Deb Blevins & Isabella Nouri
Bayer Corporation
Thank you!