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