Using SAP Collection Strategies & Correspondence Automation to Increase Collections Performance and Reduce DSO

Transcription

1 SAP Receivables Management Seminar Using SAP Collection Strategies & Correspondence Automation to Increase Collections Performance and Reduce DSO Sashi Narahari CEO, HighRadius Feb 6, 2013 Dallas, Texas

2 Agenda SAP Collection Strategies How to effectively segment customers? Sap Collections integration with A/R Is it real-time? Correspondence Automation How to make the computer do a lot of standard repetitive work and refocus the analysts time on high value targets? 2

3 Demo Standard SAP Collections Management HighRadius Advanced Correspondence Automation

4 SAP Collections Management Users Collections Manager Collections Specialist Define collection strategies / rules Define work item assignment to users / groups Monitor and reallocation of workload Incoming / Outbound collection calls Process daily worklist based on prioritization Record customer contact and follow up

5 Collections Management Users Collections Manager

6 Data available for Collection Strategies Broken Promise to Pay Number of Promise to Pays Promise to Pay Amount Customer Contacts Resubmissions Collections Data Open AR & Dispute Mgmt Data Aging Amount Dunning Level Amount Dunned Disputed Amount Dispute Case Status Payment Data Other Data Credit Data Master Data or Operational Data which can be added to collections management Credit Limit % Utilization Credit Exposure Risk Category

7 Collections Strategy Definition Collection Strategy Collection Strategy for High Risk Customers Maximum Valuation = 100 Collection Rules High to Medium Risk and greater than 80% Credit Limit Utilization Valuation: 35 points Past Due Invoices Over 15 days Past Due & Dunned One or More Times Valuation: 50 points Resubmission Due for the Customer Valuation: 15 points

8 Collection Strategy Valuation Valuation of customer is les than 20% of Maximum Valuation Low Priority Valuation of customer is less than 40% of Maximum Valuation Medium Priority Valuation of customer is less than 60% of Maximum Valuation High Priority Valuation of customer is less than or greater than equal to 100% of Maximum Valuation Very High Priority

9 Solution Architecture Set of Customers [C1, C2, Cn] Rules Strategy Subset Set of of Customers s [C1, C2, C3 Cn] Cn] Auto Correspondence Fax Mail Call

10 Sample Scenario

11 Customer Segmentation Small & Medium Business Slow Pay Automated Proactive Reminder 7 days before Past Due Notice 1 after 7 Days Past Due Notice 2 after 21 Days Demand Notice after 45 days Call Customer after 60 days Small & Medium Business - Fast Pay Past Due Notice 1 after 14 Days Past Due Notice 2 after 28 Days Call Customer after 50 days Major Accounts (Large Customers) Proactive Reminder 14 days before Past Due Notice 1 after 14 Days Call Customer after 30 days

12 Collections Management: Collection Strategy Strategy for Slow Pay Customers Pro-active (0-20 points) 1 st Past Due (21-40 points) 2 nd Past Due (41-60 points) Demand Notice (61-80 points) Call ( points)

13 Collections Management: Collection Strategy Strategy for Fast Pay Customers 1 st Past Due (21-40 points) 2 nd Past Due (41-60 points) Call ( points)

14 Collections Management: Collection Strategy Strategy for Major Customers Pro-active (0-20 points) 1 st Past Due (21-40 points) 2 nd Past Due (41-60 points) Call ( points)

15 Collections Management Users Collections Specialist

16 Collections Management: Collector s Worklist List of Customers Prioritized Pro-active (0-20 points) 1 st Past Due (21-40 points) 2 nd Past Due (41-60 points) Demand Notice (61-80 points) Call ( points)

17 Is SAP Collections real-time? Short Answer: YES! Worklist generation is batch Say once a day Open Items is real-time Data is being read directly from A/R 17

18 Correspondence: From Worklist Ability to send correspondence from Worklist Select Pro-active to mass process

19 Correspondence: Proactive Reminder Select Package and which transactions to include in correspondence Select Contact and Correspondence Mode

20 Correspondence: Proactive Reminder

21 Correspondence: 1 st Past Due Select 1 st Past Due to mass process

22 Correspondence: 1 st Past Due Select 1 st Past Due Package

23 Correspondence: 1 st Past Due

24 Correspondence: 2 nd Past Due Select 2 nd Past Due to mass process

25 Correspondence: 2 nd Past Due Select 2 nd Past Due Package & Send

26 Correspondence: Sample Correspondence

27 Correspondence: Sample Correspondence Letter and Invoice Copy attachments

28 Correspondence: Sample Correspondence

29 Correspondence: Sample Correspondence

30 Correspondence: Demand Notice Select Demand Notice to process

31 Process Receivables: Customer Details Screen Send correspondence button for individual customers

32 Correspondence: Demand Notice Select Demand Notice Package

33 Correspondence: Demand Notice

34 Correspondence: Package Definition Select from a list of Smart Forms, Documents such as Invoice Copy, POD copy etc to define a collated package

35 Correspondence: Maintain Letters Select Letter to Create/Edit

36 Correspondence: Maintain Letters

37 Correspondence: Maintain Letters

38 Correspondence: Maintain Letters

39 Correspondence: Maintain Letters

40 Correspondence: Maintain Letters

41 Correspondence: Maintain Letters

42 Correspondence: Maintain Letters

43 Collector s Worklist: Call Customers Call customers with high past due balances or no outcome after correspondence

44 Collections Management: Invoice Summary Default Customer Contact readily available Review open items to be collected

45 Collections Management: Payment History Review payment history

46 Customer Contact Outcome Promise to Pay Not Available Customer Contact Dispute Case Request additional data Request Follow up

47 Create promise to pay on a collection call Call Customer Outcome: Promise-to-Pay

48 Call Customer Outcome: Promise-to-Pay Record promise for payment or customer contact at the invoice level

49 Call Customer Outcome: Negotiate Installments Ability to setup Installment plans on high risk customer

50 Collections Management: Promise-to-Pay Promise for payment has been recorded

51 Collections Management: Promise-to-Pay Summary of all Promise to Pay

52 Call Customer Outcome: Create Follow-up Create a Follow-up reminder on specific invoices

53 Call Customer Outcome: Create Follow-up Identify the date of the resubmission along with a Reason

54 Collections Management: Resubmission Summary of all Resubmission

55 Call Customer Outcome: Invoice Disputed Create Disputes on Invoices

56 Ability to identify details of the dispute and route it to the appropriate analyst Call Customer Outcome: Invoice Disputed

57 Collections Management: Dispute Cases Review open and closed dispute cases

58 Select invoice and enter invoice specific notes Notes Management

59 Notes Management Identify the reason of the note

60 Collections Management: Notes Summary of all Notes

61 Collections Management: Completed Item Text Work item completed

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