Why you should be using SAP FSCM Dispute & Collections Management? Mark Chalfen Bluefin Solutions

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Rudolph O’Brien’
6 years ago
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1 Why you should be using SAP FSCM Dispute & Collections Management? Mark Chalfen Bluefin Solutions

2 Agenda What are the current issues within Accounts Receivables What is the Financial Supply Chain and SAP FSCM An overview of Collections Management Demo of system An overview of Dispute Management Demo of system Introduction to auto-cash Demo of solution Achievable benefits of FSCM Best practice methodology for FSCM Questions and answer session

3 Current pain points for an Accounts Receivable function

4 Common current issues Common Account Receivable issues Business Impact Aged debt reports downloaded into Excel Reactive process, high manual effort Promise to Pay s cannot be captured Dispute process managed offline via spreadsheets No system generated dispute reporting Lack of visibility for Credit decisions No self service options for customers Inaccurate cash flow forecasting Poor visibility and manual processes Unable to proactively manage the process Poor control within the process Extra effort for team

5 What is the Financial Supply Chain and what is included in SAP FSCM

6 What is the Financial Supply Chain

7 What are we focusing on?

8 Collections Management

9 Collections Management An integrated process that provides a prioritised worklist for the Accounts Receivable team Once in the worklist the specialist can: Record a Promise to Pay action Raise a dispute against an invoice or invoices Enter notes against the customer, or line items View customer contact history Send correspondences to the customer Resubmit the account to be processed at a later date or time

10 Collections Management System demo...

11 Dispute Management

12 Dispute Management The process of recording, processing, escalating and resolving disputes relating to customer invoice queries Once in the dispute the user can: Add notes Add attachments Drill into linked items invoices, credits Change the status to record an action E mail the dispute internally or to the customer

13 Dispute Management System demo...

14 Auto-cash

15 What is auto-cash An accelerated process to automate the cash allocation process for large remittances Target audience Current issues Business benefits Customers that produce large volumes of invoicing will invariably find that the cash allocation process for certain customers is both time consuming and cumbersome Clearing a 10,000 line remittance can take over a day in some cases. Customers who raise deductions need residual items to be manually created. Auto-cash will automatically create any residual items and select the invoices within a remittance file in a matter of minutes, reducing effort and increasing clearing accuracy.

16 Auto cash allocation logic Formatted Customer remittance file Validation Processing Clearing Check all invoices are open with valid amount Y N Add payment number to XREF1 of invoice Create a deduction DR XREF1 is invoice number CR XREF1 payment number and XREF3 the invoice number Confirm file structure Check all credit notes are open with valid amount Check if deductions are in SAP already Y N Y N Add payment number to XREF1 of credit Create a deduction Add payment number to XREF1 of invoice Create a deduction CR XREF1 is invoice number DR XREF1 payment number and XREF3 the invoice number CR XREF1 is deduction = DR XREF1 payment number and XREF3 the deduction The payment document along with all accounting documents invoices, credit notes and deductions with the same value in XREF1 will clear

17 System demo... Auto cash

18 Best practice methodology

19 SAP FSCM Implementation methodology Phase Activities Outputs POC In customer s development environment build high level configuration Basic SAP FSCM solution to be used for scoping and begin user empathy Scoping Final Build Testing & Training Cutover and golive Support Review current as-is process maps and FSCM solution to produce to-be process map and final scope of solution Perform final configuration steps Unit Testing Perform developments including reporting Activate workflow for Disputes Integration Testing & Cutover Testing User Acceptance Testing End user training by super users Move transports & manual configuration to Production Create new master data Start productive jobs Agreed support window by project team Super users resolving issues Handover from project team to support To-be process map Final scoping and design document Final reporting requirements Final solution built and Unit Tested Solution moved to quality client for further testing Fully tested system Fully trained workforce Ready for cutover Productive environment ready for use All data and jobs ready for go live Business as usual for SAP FSCM Confident super user community Support managing issues

20 Achievable benefits of FSCM

21 Achievable benefits of FSCM Benefits achieved via SAP FSCM Improve efficiency of collection team Improve cash flow reporting Reduce data duplicity and provide uniformity Quantified Creation of a prioritised worklist Ability to record Promise to pays Manage disputes within SAP Proactive stance to managing disputes Use of actual SAP data for credit scoring Self service options for customers Workflow to manage dispute process flow Better data accuracy for credit scoring Biller Direct customer s view of account

22 Thank You

SAP Receivables Management & Future Vision: Orchestrating Excellence in Credit and Collections

SAP Receivables Management & Future Vision: Orchestrating Excellence in Credit and Collections Stephen Ruzicka, CPA CITP PMP Senior Solution Engineer June, 2015 Agenda Receivables Management Overview Collections