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Financial Supply Chain Components
What is FSCM…………….?Financial Supply Chain Management (FSCM) is an integrated approach to provide better visibility and control over ALL cash-related processes.
• Integrating core processes in finance, operations, sales, and logistics.
• Support new processes, such as shared-services, outsourced services and other unique business models
• Enables “people” – your most coveted asset to be empowered to manage and create value for your business
Introduction
FSCM Components…..
• Collections Management• Dispute Management• Credit Management• Biller Direct• In-House Cash• Treasury & Risk Management
Introduction
Collections Management……• Worklist for collection agents
• Criteria to select and prioritize customer accounts• Direct access to customer account from worklist
• Process and view open receivables• All open invoices and their status at a glance• Invoice history• Actions for one or several invoices can be directly taken• Tight integration with SAP Accounts Receivable
• Collection procedure• Promise to pay agreements• Automatic integration with payments and clearing postings
• Integrated with SAP Dispute Management• Create and view dispute cases from SAP Collections Management
Introduction
Dispute Management……• Cross-department dispute resolution
• All information is centrally stored and structured (electronic record)• Integration with SAP Workflow incl. e-mail notification of processors• Integration in financial but also in logistical processes
• Creation and viewing of dispute cases from financial transactions• Automatic update of dispute cases by financial transactions• Links to financial and billing documents (SD and CRM)
• Correspondence capabilities• Customer correspondence (automatic and manual)• Internal escalation of critical dispute cases
• Support of different communication channels• SAP Biller Direct• SAP Collections Management
• Analysis of dispute resolution
Introduction
Credit Management……• Credit Limit Management
• Implement a company wide credit policy• Manage a customer credit profile• Central credit management in a distributed system landscape
• Credit Case• Credit case for structured processing of credit limit applications• Track status and result of credit limit applications
• Credit Rules Engine• Categorize customers by scoring rules• Automatically calculate and assign a customer-specific credit limit• Credit check rules
• Credit Information• Interface to external credit agencies• Input parameters for scoring rules• BW Content
• Credit Manager Portal• Role-based access to credit management information and analysis
Introduction
Biller Direct……• Customer can display the own accounts
• Invoices, payment history and account balances• Suppliers can see all of their invoices including their status (e.g. if they are paid
or not)• They can also view additional payment information (e.g.check number)• Customers can see all of their bills and credit notes using the Internet.
• Integration with SAP Dispute Management and SAP Cash Management• Customers can create dispute cases for both partial payments or the entire
invoice• Customers can select a reason for dispute • Customers can create initial note for the dispute • Customers can select a contact person out of the customer contact list
• Correspondence• They can display documents as PDF or XML• They can download data as PDF or CSV
Introduction
IN-HOUSE CASH……• Management of internal bank accounts for all subsidiaries
• Support of various corporate group structures• Routing of payment orders to local subsidiaries to replace cross-
border payments• Internal bank accounts in any currency• Flexible condition and limit concept
• Control of payment transactions on a regional and global level• Netting of internal payments• Central processes for external payments• Use of standard programs for payment orders and bank statements
• Full integration with SAP Cash Management and SAP Treasury and Risk Management
Introduction
Cash & Liquidity Management……• Real-time integration of SAP Cash Management with operative systems• Electronic banking (various formats)
• Automatic processing & reconciliation of bank statements (prior-, intraday, lockbox)• Electronic Payments (payment program, online payments, repetitives) Cash
concentration• Flexible view on cash position and liquidity forecast• Selection options such as company code(s), business areas, original currency
• Display options such as display currency, delta or cumulative display, currency• view per day, flexible time intervals• Easy creation of memo records and payment advices• Direct drilldown to detail information• Monitoring functions
• Centralized system for medium- and long-term liquidity planning• Flexible setup of liquidity planning procedure in the group• Automatic assignment of liquidity items to actual payments• Actual-plan comparisons
Introduction
Treasury & Risk Management……• SAP Treasury & Risk Management offers a straight through processing
• One data capture and the data is available for front office, back office, cash management and accounting instantly
• Accounting in parallel according to several accounting principles for example IAS and HGB
• SAP Treasury & Risk Management helps you to identify the financial risks• Changes in currency rates• Yield curve changes• Value at Risk calculations
• SAP Treasury & Risk Management calculates the financial credit exposure• Using formulas to calculate financial credit exposure• Manage the exposure with a flexible limit management
• SAP Treasury & Risk Management provides you with integrated reporting• Central reporting point for all your financial transactions and positions
Purchase Order Placed
Receipt /Invoice
Actual payment
Introduction
TIMETIME
Days In Inventory
Days Sales Outstanding
Days In Payables
Expected Payment date
Days In Receivables
Cash flow Cycle
Sales Order Placed
Sales/ delivery/ Invoice
Actual payment
Check Credit
Issue Invoice
Cash Forecast
Financial working Capital
Dispute Resolution
Collect
Cash
Settle &
PayReconcile
Credit Management
Dispute Management
CollectionsManagement
Integrated Financial Approach
Cash & Liquidity Management
Treasury & Risk Management
In-House Management
Financial Supply Chain Management
Biller Direct
Electronic invoicing
Integrate customer service with finance
Customers see all bills and credit notes on Internet .
Customers Access & create dispute cases for both partial payments or the entire invoice
Electronic Customer payment
Suppliers can see all of their invoices and status
Financial Supply Chain Components
Access Work list • Automatically created• Personalization• Search function• Statistics
Prepare Customer Contacts
• Key figures per work list item• Valuation detail• Due date grid• Invoice overview• Overview of past payments• Overview of past contacts• Overview of resubmissions
Contact Customer• Promises to pay• Dispute cases• Resubmissions• Customer contact
Collection - Receivables Process Establish a customer
centric receivables management
Evaluate, identify and prioritize accounts
Collect receivables proactively
Process optimization for high volumes of open items
Collections Management
Prerequisite for creating a work list….Transfer data from Accounts Receivable to Collections Management. Initial data transfer• Transfers data of all company codes that participate in Collections Management (full
update). Periodic data transfer• Only new data and changed data is transferred (delta transfer). Data transfer according to selection• This type of data transfer is used in exception situations to rebuild selected customers in
Collections Management.
Open Items
Last Payment
Customer Key Figures
Accounts Receivables
Report Send FI-AR relevant data to Collection Management
Collections Management
Business Partner Key Mapping
Collections Management
Collection Segment
Company Code
Collection Profile
Collection Group
Collection Specialist
Collection Strategy
Elements of the Organizational StructurePrerequisite for creating a work list….
• Collection segments group company codes of a company from the view of SAP Collections Management.
• Collection strategies used prioritize business partners on the work list and Summarized information per customer
• Collection group consists of collection specialists (Groups can be region or customer type driven)
• Collection Specialist is assigned to a group and navigates from the selected work list item to ECC function ‘Process Receivables’
Collections Management
CustomerCustomer
Profile
Collection Group
Collection Specialist
Customer in Segment
Collection Segment
User AssignmentSystem AssignedConfiguration
Prerequisite for creating a work list….
Collections Management
Creating a work list….• Work list can be create as a daily batch Job• Each collection specialists gets a daily work list• Customers are valuated and prioritized according to collection rules in a
Collection strategy.
Collections Management
Link to Business Partner
Aging of receivables
Collections Management
Creating a work list….
Work list
Collections Management
View dispute case(s) per selected invoice
View promises to payper selected invoice
View invoice historyof selected invoice
Collections Management
Collections Management
Collections Management
Collections Management
Summary.......
• Increase collection specialist efficiency and decrease cost of customer centric receivables management
• Automatic work lists containing prioritized customers• Summarize all relevant information and necessary
activities for collection of receivables in one application
• Summarize all history and relationship management• Better Synchronizing and predictability of cash flow
Collections Management
Dispute Management
SAP Dispute Management provides functions for processing receivables-related dispute cases
Cross-department dispute resolution• All information is centrally stored and structured (electronic record)• Integration with SAP Workflow incl. e-mail notification of processors• Integration in financial but also in logistical processes
• Creation and viewing of dispute cases from financial transactions• Automatic update of dispute cases by financial transactions• Links to financial and billing documents (SD and CRM)
• Correspondence capabilities• Customer correspondence• Internal escalation of critical dispute cases
• Support of different communication channels• SAP Biller Direct• SAP Collections Management
SAP Dispute Management is integrated in those financial processes of SAP Financials Accounts Receivable where disputed invoices typically become visible:FBL5N Create Dispute Case
Dispute Management
Access Work list Disputes can be created from the work list by selecting line item.
Dispute Management
Create Dispute Case Display Dispute Case
Dispute Management
Dispute Work list
Dispute Management
Dispute Management
Reason & Status
Amount Fields
Customer Contact Information
LOGS
Roles
Correspondence…….Automatically by events like•Create dispute cases•Close dispute cases
Events that can be defined on project levelManually by the user when processing the dispute caseSAP delivers standard customer correspondence for• Fax, e-Mail, and letter• Notification that a dispute case has been created• Notification that dispute case has been closed• Query regarding dispute case• Information about dispute case
Customers can create their own correspondence• Use Smart forms• Data available for correspondence• All attributes• External notes• Object keys of objects stored in the dispute case folders (case record)
Dispute Management
Correspondence…….
Dispute Management
33
• Efficient & Pro-active receivable management• Prioritizing and performing customer collection for
collections• Efficient Processing of receivables-related customer disputes• Automatic generation of customer statements periodically• Efficient communication and documentation of Payment and
disputed• Control your customer’s credit exposure• Reduce amount of bad or doubtful debt• Collect receivables proactively
Dispute Management
Summary…….
Create dispute cases in Dispute Case Organizer or Financial accounting (FBL5N report)
Create dispute case in Organizer due to a customer contact Flexible search of dispute cases based on attributes Automatic write-off an closing of dispute cases Create dispute cases directly from Collections Management View status of dispute cases from Collections Management Improve cash collection by speeding up dispute resolution
and better overview of customer account Seamless integration of the processes dispute resolution and
cash collection
Dispute Management
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