A guide to Dispute ManagementRoles and Processes
Upon completion of this module, you should be able to:
Define Collections Management
Describe Roles and Processes in collections management
Describe various features in collection management
Elaborate important concepts
Explain Process Receivables
Collections Management supports:
From a risk management perspective
From a customer relationship perspective
Proactive collection of receivables
Process optimization and automation for high volumes of open
items
Workforce Management
Increasingly bad payment behavior
No reaction on automatic correspondence (i.e., dunning)
Financial situation influences customer relationship
Today, Collections Management is mostly a time-consuming, costly,
and cumbersome process
Select and prioritize customers to be collected from
Search for account information
Reduce DSO
Avoid write-offs
Improve Customer Relationship Management
Retain valuable customers and convert difficult customers by
providing the right interaction in delicate scenarios
Provide a complete picture of customer history
Increase customer satisfaction
SAP Collections Management provides collection strategies that make
it possible to select and prioritize customers for the collection
of receivables.
Collection strategies are the basis for the automatic creation of
daily worklists for collection specialists.
SAP Collections Management offers special collection procedures to
document and respond to customer contacts.
Collection managers will find a variety of options to control the
collection of receivables.
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1. Collection Specialist – Who is responsible for collection of
receivables
2. Collection Supervisor – Who is responsible for controlling the
collection of receivables.
Collection Specialist will get the worklist for his customers based
on which he will contact the customers and process the
receivables.
Collection Supervisor will create strategies, generate worklist for
Collection Specialist and monitor the activities of Collection
Specialist
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FSCM Collections Management Path
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SAP Easy Access transactions
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Business Partner
Collection Profile
Collection Segment
Collection Group
Collection Strategy
Collection Worklist
BP is automatically created when Customer is created.
Customer in AR = BP in FSCM
Business Partner in FSCM Collection Management will have a role
Collection Management wherein Collection Profile is assigned.
Collection Segment, Collection Group & Collection Specialist
will be assigned to the profile.
T. Code UDM_BP
Collection Mgt Role
Groups Company Code.
Transactions of Business Partner of these Company Code can be
considered together.
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Collection Group – T. Code - UDM_Group
Has the group of Collection Specialists who are to contact
customers in Collection Management.
Has Collection Strategy for each group.
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Collection strategy comprise of company-specific rules for
collecting receivables
Collection strategies have the following purposes:
Determine which customers are to be contacted in Collections
Management (basis for automatic worklist creation)
Prioritize customers on the collection worklist
Define the currency in which the amounts are to be displayed on the
worklist
Determine the time intervals of the aging of receivables per
customer in a segment (Due date grid)
Define the type of integration with dunning in Accounts Receivable
Accounting
Determine the influence of the terms of payment on Collections
Management (consideration of cash discounts)
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Collection Rules assigned
Valuation Points assigned
Overdue Period specified
Contains the list of customers whom Collection Specialist should
contact.
Customers are valuated & prioritized based on Collection
Strategy.
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Features in Collection Worklist
Summarized information per customer regarding:
Customer Account in Accounts Receivable
Past collection activities
Credit Management data
Aging of the customer’s receivables (due date grid)
Search function (view other customer account or other
worklist)
Navigation to business partner master from the worklist
Statistics about degree of worklist processing
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My Worklist – Summarized view
Detailed View
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Detailed view in Worklist
The collection specialist receives the following information per
customer in a collection segment:
All open invoices of customer account with their current status,
with the option to:
View promises to pay per invoice
View dispute cases per invoice
View invoice history
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Promise to Pay
Promise to pay is created when Customer agrees to pay an invoice at
a specified date.
Promise to pay can be valuated to determine the status.
If the promise to pay is paid, then the status will be Kept.
If the promise to pay is not paid, then the status will be
Broken.
If the promise to pay is partly paid, then the status will be
Partially Kept.
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Resubmission
Resubmission is created when Customer informs to contact at a
specified date.
The Customer will not appear in Collection Specialist worklist till
the resubmission date.
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Process: Collection of Receivables
Transfer Data from AR to FSCM
Generate Worklist
Periodic activities in collection management
There are 3 steps which needs to be performed so that Worklist gets
created for the Collection Specialist:-
1. Periodic Transfer of data from AR to Collection Management
through Batch Jobs. T. Code FDM_COLL_SEND01.
2. Evaluation of Promise to Pay through Batch Jobs. T. Code
FDM_JUDGE.
3. Creation of Worklist through Batch Jobs. T. Code
UDM_GENWL.
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Periodic Data Transfer
T. Code :- FDM_COLL_SEND01
This is required to transfer initial data, Periodic data or
according to selection.
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Valuating Promise to Pay
If the customer has paid the promised amount within the deadline
agreed, the system valuates the promise to pay as Kept.
If the customer has only paid part of the amount promised within
the deadline agreed, the system valuates the promise to pay as
partially kept.
If the customer has not paid the promised amount within the
deadline agreed, the system valuates the promise to pay as
Broken.
T. Code FDM_JUDGE
Creation of Worklist
T. Code :- UDM_GENWL
This transaction will create the worklist so that it appear in the
Myworklist of Collection Specialist.
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Process: Collection of Receivables
Collection Specialist will get daily worklist for his BP
(customers).
Worklist will contain details of amount outstanding, amount to be
collected, no. of days due etc.
It will also provide in details for each customer, list of open
invoices, dispute cases, promise to pay, resubmissions, payment
history.
From the worklist, Collection Specialist can create Promise to Pay,
Customer Contact, Dispute Case, Resubmissions.
Once Collection Specialist has performed an action, the customer
will no longer appear in the open worklist of Collection
specialist. It will be moved to Closed Worklist.
Prerequisite – Customers needs to be replicated as BP, Data
Transfer from AR to Collection Management is done & Worklist is
generated.
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Activities in customer contact
The collection specialist can document his or her collection
activities by:
Creating promises to pay
Documenting the customer contact itself
The starting point for most collection activities is the overview
of open invoices
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Create Promise to Pay from Process Receivables
Select the invoices for which the customer promises to pay and
click Promise to Pay
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Save. You will notice that the state of these invoices is
changed.
Create Promise to Pay from Process Receivables
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Post Incoming Payment – For Promise to Pay
An incoming payment is posted for the invoice for which the
customer gave the promise to pay.
Promise to pay details before posting an incoming payment
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Payment document posted for these promise to pay items
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Post Incoming Payment – For Promise to Pay
Now in My worklist of Collection Specialist, there are no promise
to pay items for Customer Ricky.
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Valuating Promise to Pay
If the customer has paid the promised amount within the deadline
agreed, the system valuates the promise to pay as Kept.
If the customer has only paid part of the amount promised within
the deadline agreed, the system valuates the promise to pay as
partially kept.
If the customer has not paid the promised amount within the
deadline agreed, the system valuates the promise to pay as
Broken.
Program name for Valuating Promise to Pay:FDM_P2P_JUDGE
Tcode : FDM_JUDGE
Output
Here the customer has paid the Promise to Pay for 4 invoices for
Rs. 6100 as mentioned during post incoming payment and hence the
status for these had been valuated as Kept.
For Invoice 1800000014, the Promise to Pay had been broken and
hence it is valuated as Broken Promise to Pay.
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Valuating Promise to Pay
In T. Code UDM_SPECIALIST, you can see the same:-
Since the Promised date was 05.08.2007 and the valuation was done
on 08.08.2007, the status of this Promise to Pay is Broken
(RED).
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Collection specialist creates promise to pay
Creation possible for one or several invoices
Promise is traced on single invoice level
Collection specialist renews promise to pay
Existing promises can be renewed (use change option)
Renewed promises get a higher promise level*
Promises to pay are updated by incoming payments
State “kept” if incoming payment equals promised amount
State “partially broken” if payment amount is smaller than promised
amount
Promises that are not kept get state “broken”
Customers with broken promises will automatically appear on the
worklist
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Dispute Cases from Collection Management
Collection specialist can create a dispute case for one or several
invoices
System offers all open items of selected invoices for selection of
disputed items
Collection specialist selects disputed items
Collection specialist enters all required information and saves
dispute case
Dispute resolution process can start immediately
Collection specialist can collect disputed amount for dispute cases
where the status is “to be collected”
If the outcome of dispute resolution is that the dispute was not
justified, the dispute case gets the status “to be collected”
Status “to be collected” is used in collection rule; customers with
dispute cases of this status will appear on the worklist
Status of dispute case is displayed per invoice
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Create Dispute Case from Process Receivables
Select an invoice for which Dispute case needs to be created and
click on Create Dispute Case.
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Create Customer Contact from Process Receivables
Click Customer Contact after selecting an item or without selecting
an item
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Create Customer Contact from Process Receivables
Save. After this, there will no longer be any Worklist after this
for BP Ricky.
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Create Resubmission from Process Receivables
In T. Code UDM_SPECIALIST, double click the open items of a
business partner.
In the following screen, go to Tab Resubmissions and Click
Create
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You will get the following screen.
Fill in the details and save
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You will get the information that Resubmission is created.
Click back button. The system will prompt to create customer
contact. It will already have the text which was maintained in
resubmission in the contact note.
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Fill in the details in customer contact and save.
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Completed Items
The items which were open and now addressed by Collection
Specialist will be in completed item status and it will not appear
in My Worklist as Open Items.
You can get the Completed items by clicking this icon.
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Collections Management definition
Roles and Processes for Collection Specialist and Collection
Supervisor
Features of Collections Management
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