417126, 1:08 po. Collections Management in SAP Sid HANA - Recaivab... SAP Community SAP Community > Products and Technology > Supply Chain Management > SCM Blogs by Members > Collections Management in SAP S/4 HANA - Recelvab. Supply Chain Management Blogs by Members Learn about SAP SCM software from firsthand experiences of community members, Share your own post and join the conversation about supply chain management Blog What are you looking for today? Collections Management in SAP S/4 HANA - Receivables Management TonyM Explorer ° 05-15-2017 12:56 PM 19Kudos | © 44,581 1. Receivables Management Receivables Management in line with its title is self explanatory. In SAP S/4 HANA enterprise management it enhances management of Accounts Receivables. Incoming cash flow from sales is the heartbeat of every organization. Managing this sales cash flow is effort an intensive process and often complex. Receivables Management (RM) has excellent system functions to evaluate a Business Partner's credit situation before a sale is initiated. It also allows proactively managing delayed payments. It streamlines management of disputes in the Business Partner's sales invoices. It ultimately reduces Days sales outstanding (DSO), improves the working capital. Assists in lowering operating costs and minimize bad debt and write-offs. In the earlier SAP ECC 6.0, RM was referred to as Financial Supply Chain Management titpsvleommunity sap convtSIsupply-chain-managomont-blogs-by-mamberscollections-managementsn-sap-s-4-nana.tecelvables-managemenvba-p.... 1/24817126, 108 pm. Collections Management in SAP S/4 HANA Receivab.... SAP Community (FSCM). Pee Reena calleaton Digan case Tipe case Strate: ir Gellection Worktows Worktiste Dispute Peer eee? Gens od 1.1 Scope of the Blog This blog attempts to explain the Collection management related business functions that are available in SAP S/4 HANA Enterprise management. 2. Collection Management Processes Collection Management is an integral part of Receivables Management in the SAP S/4 HANA Enterprise management. «It facilitates effective management of collections and better service to Business partners (BP) + Itallows the collection team agent to proactively evaluate, identify, and prioritize the BP accounts that have Sales Invoices past their due dates but haven't been paid.\ * It allows prioritization of collections calls, document BP contact, set call-back reminders and record invoice disputes. + It facilitates electronically sending copies of invoices and statements during BP contact. -ntps:i/eommunty.sap.comiSisupply-chaln-management-blogs-by-membersicollections-management-in-sap-s-4-nana-recolvables-managementiba-p... 2/24817724, 1:08 pm. Collections Management in SAP Sit HANA Receivab...- SAP Community For collections Managers there are reports to analyze agent performance to better a distribute workload. + In aging reports the Collection data can be combined with receivables information. + This helps to reduce DSO, improve collections rates, and enhance sales related Business Partner relationships. Accounts Receivable Operations “No. Worst Contact Customer & Record Contact 2.1 Keys items in Collections Management Collections Management has the following 2 key items 2.1.1 Collection Strategies * Strategy is a set of rules which form a basis for the automatic creation of daily worklists. -ntps:i/eommunty.sap.comiSisupply-chaln-management-blogs-by-membersicollections-management-in-sap-s-4-nana-recolvables-managementiba-p.. 3/24417126, 1:08 po. Collections Management in SAP Sid HANA - Recaivab.... SAP Community * Each rule within the strategy contains the criterion and the score. These details are used to prioritize Business Partners for the collection of receivables ‘+ Worklist is a prioritized list of sales related Business Partners that have to be worked on + Worklist creation performs the evaluation, identification, stratification and prioritization of Business Partners according to collection strategy * Daily worklists improve user productivity and efficiency 2.2 Collection Management Roles Collection management in SAP revolves around the active involvement of the below 3 roles + Collection Specialist + Collection Manager + System (ie. Automated steps) 2.2.1 Collection Specialist A collection specialist is a team member who contacts the Business Partners (BP) from the Sales business. titpsvleommunity sap convtSIsupply-chain-managomont-bogs-by-mamberscollections-managementsn-sap-s-4-nana-ecelvables-managemanvba-p.... 4/24417126, 1:08 po. Collections Management in SAP S/4 HANA Receivab.... SAP Community The Collection specialist accesses the worklist, prepares for contacting the BP, contacts the BP and documents the details involved in this contact. 2.2.1.1 Access Worklist The Collection Specialist accesses the worklist and * Gets an overview of all worklist BP related entries + Checks degree of worklist processing i.e. the scoring pattern In SAP S/4 HANA the collection specialist logs into the FIOR! UX portal by entering the username and password Once the collection specialist has logged in the S/4 HANA systems, all the APPS what are applicable to the user are displayed. titpsvleommunity sap convtSIsupply-chain-managoment-blogs-by-mamberscollections-managementsn-sap-s-4-nana-tecelvables-managamenvba-p.... $124417126, 1:08 po. Collections Management in SAP S/4 HANA Receivab.... SAP Community Dally Bushes ‘ a. 0 tineters | Payments The APP for accessing the collection worklist has been shown above in a red box. The APP displays on the tile the number of worklist items that are assigned to the specialist. These Items denote number of Business partners. Once the worklist APP is accessed the list of Business partners appears in the order of priority i.e. the scoring pattern. Here the user can check the different amounts like outstanding, Disputed etc. Missed payments and call back reminders. 2.2.1.2 Prepare for Contact The Collection Specialist accesses the worklist and Checks valuation of Business Partners (BP) according to collection strategy Gets overview of BP accounts Views past contacts Views past payments titpsvleommunity sap.convtSIsupply-chain-managoment-blogs-by-mamberscollections-managementsn-sap-s-4-nana-tecelvables-managemenvba-p.... 6/24417126, 1:08 po. Collections Management in SAP S/4 HANA Receivab.... SAP Community * Checks resubmissions + Selects contact person to reach Inside the worklist APP, if the user clicks on the priority column it takes the user through the strategy rules applied on the Business Partner (BP) and details how the total score was arrived. The worklist also provides an overview of the different BP accounts. If credit management is applicable the credit limit and usage can also be seen. Incase Dunning is applicable the level can be seen. Within each Business partner item the specialist can drill one level below. This lists the details of the BP i.e. Invoices and Payments, Disputes, missed payments and callback reminders. umn ona os ste gS = hs An overview of the details allows the specialist to prepare for contacting the BP. The list of notes shown on the right hand side bottom is a massive improvement over the earlier ECC 6.0 based Collections Management. The notes are now shown at a BP level. In S/4 HANA every action performed on the worklist is logged within the respective BP as notes. The due date based graph for BP receivables in respective buckets is another new addition in S/4 HANA that pictorially helps the specialist during the BP contact 2.2.1.3 Contact Business Partner The Collection Specialist attempts to contacts the Business Partner and document the titpsvleommunity sap convtSIsupply-chain-managoment-bogs-by-mamberscollections-managementsn-sap-s-4-nanatecelvables-managemenvba-p...._ 7/24417126, 1:08 po. Collections Management in SAP S/4 HANA Receivab.... SAP Community details by one of the below items + Create promises to pay / Renew promises to pay + Withdraw promise to pay * Create dispute cases * Create resubmissions + Complete resubmission + Create correspondence * Mark the result of the customer contact Each of the above items have been marked in the worklist in the below screen-prints. When the respective buttons on the worklist are accessed and it brings up the relevant screen for documenting the BP contact. titpsvleommunity sap convtSIsupply-chain-managoment-blogs-by-mamberscollections-managementsn-sap-s-4-nana-tecelvables-managemenvba-p.... 8/24817126, 108 pm. Collections Management in SAP S/4 HANA Receivab.... SAP Community sce reath wy Sameer, sen Sunlfe Solutions ine Invae9e. Demeci-PRE a Resubmissions Stand FeseonSucoptee Nts wo umes 1. Create promises to pay / renew promises to pay When the BP agrees to pay at on a particular date the same is noted. The date can be renewed. If payments are not received on the set date, the system marks it as broken promise to pay. When a promise to pay is recorded, the system doesn't consider the respective item in the worklist until the promise to pay is broken -ntps:i/eommunty.sap.comiSisupply-chaln-management-blogs-by-membersicollections-management-in-sap-s-4-nana-recolvables-managementiba-p... 9/24817126, 108 pm. Collections Management in SAP S/4 HANA Receivab.... SAP Community 2. Withdraw promises to pay. BP can changes their mind based on the confirmation and the broken promise to pay it can be withdrawn 3. Create Disputes When the BP disputes an Invoice, the same can be recorded from the worklist in S/4 HANA Dispute Management. -ntps:i/eommunty.sap.comSisupply-chaln-management-blogs-by-membersicollections-managoment-in-sap-s-4-hana-recelvables-managementiba-... 10/24817126, 108 pm. Collections Management in SAP S/4 HANA Receivab.... SAP Community loato Det Case 1 voce sled USD 3224 Creat issio The BP cannot be reached sometimes or is reached but requests to call at a different time. In such scenarios an resubmission record is submitted 5, Complete Resubmissi -ntps:i/eommunty.sap.comSisupply-chaln-management-blogs-by-membersicollections-managoment-in-sap-*-4-nana-recolvables-managemeniba-... 10/24817126, 108 pm. Collections Management in SAP S/4 HANA Receivab.... SAP Community When BP is contacted on the date of Re-submission, the same is set as complete. - 6, Create Correspondence When BP is contacted and request Invoice copies or periodic account statements, the same can be immediately sent across via the BP correspondence. a ‘Mark Customer Contact Result When BP is contacted the result is set to remove that item from the worklist and move to the subsequent item. -ntps:i/eommunty.sap.comiSisupply-chaln-management-blogs-by-membersicollecions-managoment-in-sap-s-4-nana-recolvables-managementiba-... 12/24417126, 1:08 po. Collections Management in SAP S/4 HANA Receivab.... SAP Community 2.2.2 Collection Manager A collection manager is a lead who manages the collections team and verifies the efficiency. They perform the following tasks 4 2.2.2.1 Defines and Adopt Strategies This step involves setting up the values for the rule and scores within a strategy. i.e. in line with business expectations. This step isn't any different in s/4 HANA when compared to ECC 6. IT ini ca SCO: ane ot xo rey 2.2.2.2 Create | update groups These groups are created and maintained in line with business operation hierarchy. This step isn’t any different in s/4 HANA when compared to ECC 6. Team members and substitutes are included as well titpsvleommunity sap.convtSIsupply-chain-managoment-blogs-by-mamberscollections-managementsn-sap-s-4-nantecelvables-managemanvba-.. 13/24‘17126, 1:08 po. Collections Management in SAP S/4 HANA Receivab.... SAP Community ‘Desir Newenties copys. Deele Undo Change Sekt at Sect ‘Deselect AY Punt Mere. soy secure eine Geups and Assign Sttogy | Dee ros ana Assan ey} cre cre Rae suaegy Name ot comecion Sraegy (DAson esse to Cateton F eaceap.60\ rOLLEETIEN @ROUR eS ‘cecsme.69 COLLECTION STAATERY c0 (Asin Sutsnute Pocess F) eauLep.02 COLLECTION GROUP Ot (CASTROL COLLECTION STRATEGY OL ‘Desir Newenties copys. Deele Undo Change Sekt at Sect ‘Deselect AY Punt Mere. soy secure eine Geups and Assign Sttogy | Dee ros ana Assan ey} cre cre Rae suaegy Name ot comecion Sraegy > (Asionoesseocateion F eauLewb0\ OLLEcTiCN GROUP eo ‘cecsme.69 COLLECTION STAATERY c0 (Cassin Siesoutet Process coten.02 COLLECTION GROUP Ot (CASTROL COLLECTION STRATEGY OL tog Stctue Cotecion Group {COLLG_00 S| COLLECTION GROUPOo abetne Groups ana Assign stray ‘Assign Processor to Collection Group [Assign Sutstive to Process: — CF speciast Name of specas 7 onsen anager Cosectons Cl eou.sreci ——cotecton 1 specaast Ch eou.srece ——catecton 2 spect 5) esusen, ‘Specanst Cotectens Diaoa Srucure Ccolecton Group ‘COLLGRP_00 | COLLECTION GROUP 00 Ci tetine Groupe ans Assign State Specatst oniste Manager Cutectont ¥ CaAssgn Processor te Colecton —Asson Subsite to Process Assign Substitute to Processor (sat eng pect Name ospeiait (5 osovaowr [is/2017 cout. seecz —_coecten 2 spect 2.2.2.3 Adjust BP Master Receivables Management in S/4 HANA has BP masters same as in FSCM in ECC 6. The BP masters are kept in synchronization. The collection profile tab is specific to collections management ‘ntps:i/eommunty.sap.comSisupply-chain-management.blogs-by-membersicolleclons-management-in-sap-s-4-nana-recelvables-managementiba-... 14/24Collections Management in SAP S/4 HANA.- Recaivab.... SAP Community 817126, 108 pm. 2.2.2.4 Supervise | Monitor Collections In S/4 HANA Receivables Management, the collections manager is able to access the unassigned worklists item from the worklist app The same with checking equal distribution of worklist items. This can be done from the worklist by navigating to different specialist in the list. -ntps:i/eommunty.sap.comSisupply-chain-management-blogs-by-membersicollections-managoment-in-sap-*-4-hana-recelvables-managemeniba-... 15/24172, 108 pm Collectons Management in SAP Si4 HANA - Recovab... SAP Communty The key advantage of S/4 HANA is the analytical apps are also within one FIOR! UX portal unlike ECC 6 where the manager had to access the BI portal. The APPS are configured to highlight key indicators on top. Regortng aT tis iy ane 2.2.3 System (automated steps) In S/4 HANA the system performs few automated steps which form a key step {2} titpsvleommunity sap.convtSIsupply-chain-managoment-bogs-by-mamberscollections-managementsn-sap-s-4-nantecelvables-managemenvba-.. 16/24417126, 1:08 po. Collections Management in SAP S/4 HANA Receivab.... SAP Community ‘+ When Business partners are created in accounts receivable, the same is replicated in Collection Management by an automated steps «In S/4 HANA the process receivables section of the worklist is real-time with accounts receivables. However the worklist overview is system step that the system performs periodically This periodic step includes daily creation of worklist with the updated accounts receivable data. 3. Conclusion Collections Management in S/4 HAN, ‘experience with the UX FIORI apps are impeccable, same is the experience with real- time time analytics in the same system. definitely a very intuitive solution. The user The Collections manager related apps are not in place yet. Hence there is a dependency on personas and backend ECC screens, leaves a lot more to be desired. This is definitely an area of improvement. ‘SAP Managed Tags: SAP Financial Supply Chain Management, SAP S/4HANA Finance Tags: receivables management 1 Comment narisap we Discoverer titpsvleommunity sap.convtSIsupply-chain-managoment-blogs-by-mamberscollections-managementsn-sap-s-4-nana-ecelvables-managemenvba-.. 17/24417126, 1:08 po. Collections Management in SAP Sid HANA - Recaivab.... SAP Community ° 04-26-2018 10:30 AM 0 Kudos The information is very useful. Where can I find Receivables Management functionalities related to self service online customer registration web portal and mobile app? @ You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in. Comment Labels In This Area aATP 1 ABAP Programming 1 Activate Credit Management Basic Steps 1 Advance Shipping and Receiving 1 Adverse media monitoring 1 Alin Logistics 1 Alerts1 Ariba © ASR1 —Ausnahmehandling 1 Automation 1 bank statements 1 BI1__Bin Sorting sequence deletion 1__Bin Sorting upload 1 BP NUMBER RANGE 1 Brazil Business Network for Logistics 1 Business partner creation failed for organizational unit 1 Business Technology Platform 1 Central Purchasing 1 Change History1 Charge Calculation 3. 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SAP Community Freight Settlement 2 FSM FUB_Strategy1 FUBR 1 Geo-coordinates 1 Geo-routing 1 Geocoding 1 Geographic Information System1 GIS 1 Goods Issue 2 GTT2 BP inventory optimization 1 illuminator services 1 inbound delivery printing 1 Incoterm1 Innovation 1 —_ Inspection lot1._—_ intraday 1 Introduction 1 Inventory Management 1 Localization 1_—_Logistics 1 Logistics Optimization 2. Map Integration 1__ Material Management 1 Material Master changes 1 Materials Management 1 MDO queries in SAP Mill 1 MDOs1 MFS1 —NewFeature1 outbound delivery 1 Outbound queue 1 Outbound with LOSC and POSC 1 Packaging 1_—_ Physical Inventory 1 PHYSICAL INVENTORY EWM1 PowerBI1_ PPF1 © PPOCE1 = PPOME 1 print profile 1 Process Controllers 1. 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