Why you should be using SAP FSCM Dispute & Collections Management?

Mark Chalfen Bluefin Solutions

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

Current pain points for an Accounts Receivable function

Common current issues

Common Account Receivable issues

Aged debt reports downloaded into Excel

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

Business Impact

Reactive process, high manual effort

Inaccurate cash flow forecasting

Poor visibility and manual processes

Unable to proactively manage the process

Poor control within the process

Extra effort for team

What is the Financial Supply Chain – and what is included in

SAP FSCM

What is the Financial Supply Chain

What are we focusing on?

Collections Management

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

Collections Management

• System demo...

Dispute Management

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

Dispute Management

• System demo...

“Auto-cash”

What is “auto-cash”

• “An accelerated process to automate the cash allocation process for large remittances”

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.

Target audience Current issues Business benefits

Auto cash allocation logic

• Formatted

Customer

remittance

file

Validation Processing Clearing

Confirm file

structure

Check all

invoices are

open with valid

amount

Check if

deductions are

in SAP already

Add payment

number to

XREF1 of

invoice

Create a

deduction

Add payment

number to

XREF1 of

invoice

Create a

deduction

CR – XREF1

is deduction =

DR XREF1

payment

number and

XREF3 the

deduction

DR – XREF1 is

invoice number

CR XREF1

payment number

and XREF3 the

invoice number

The payment

document along with

all accounting

documents – invoices

, credit notes and

deductions – with the

same value in XREF1

will clear

Check all

credit notes

are open with

valid amount

Add payment

number to

XREF1 of

credit

Create a

deduction

CR – XREF1 is

invoice number

DR XREF1

payment number

and XREF3 the

invoice number

Y

Y

Y

N

N

N

Auto cash

• System demo...

Best practice methodology

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 Review current “as-is” process maps and FSCM solution to produce “to-be” process map and final scope of solution

To-be process map Final scoping and design document Final reporting requirements

Final Build

Perform final configuration steps – Unit Testing Perform developments including reporting Activate workflow for Disputes

Final solution built and Unit Tested Solution moved to “quality” client for further testing

Testing & Training

Integration Testing & Cutover Testing User Acceptance Testing End user training – by super users

Fully tested system Fully trained workforce Ready for cutover

Cutover and go-live

Move transports & manual configuration to Production Create new master data Start productive jobs

Productive environment ready for use All data and jobs ready for go live

Support Agreed support window by project team Super users resolving issues Handover from project team to support

Business as usual for SAP FSCM Confident super user community Support managing issues

Achievable benefits of FSCM

Achievable benefits of FSCM

Benefits achieved via SAP FSCM

Improve efficiency of collection team

Improve cash flow reporting

Reduce data duplicity and provide uniformity

Proactive stance to managing disputes

Use of actual SAP data for credit scoring

Self service options for customers

Quantified

Creation of a prioritised worklist

Ability to record Promise to pays

Manage disputes within SAP

Workflow to manage dispute process flow

Better data accuracy for credit scoring

Biller Direct – customer’s view of account

Thank You