Collections Management

Collections Managementbased on SAP for Utilities New FunctionsMonika Bloching, SAP AG

? SAP AG 2006, Title of Presentation / Speaker Name / 2

Note that the new collections functionality presented in thefollowing slides is a preliminary version and not subject to yourlicense agreement or any other agreement with SAP. This documentcontains only intended strategies, developments, and functionalitiesof the SAP product and is not intended to be binding upon SAP toany particular course of business, product strategy, and/ordevelopment. Please note that this document is subject to changeand may be changed by SAP at any time without notice.

SAP assumes no responsibility for errors or omissions in thisdocument


Topics

Additional Flexibility in Dunning

Responsible Agents / Teams

Workload Balancing

Worklist Management

Processing of Work Items

Promise-to-pay / Payment Arrangements

Collection History / Success

Analytics

Appendix: Using BRF


Collections Management - Overview

ExecuteCollectionStrategies

DetermineAgents/Teams

BalanceCapacity

Supported functions Integration with

Business RulesFramework brings fullflexibility regardingactivity determination

Supported functions Collections organiza-

tion can be set up inSAP OrganizationalManagement

Tasks, rules andresponsibilities areused to determine theresponsible team oragent

Supported functions Capacity for each

activity and teamand/or agent can beset up

Available capacitiesare taken into accountin activity determina-tion

Priority assignmentthrough BusinessRules Framework

ManageWork Lists

Supported functions Release of work lists Monitoring of

collections progress (Re-)assignment of

work items (Re-)prioritization of

work

Process WorkItems

Supported functions Processing of work

items in theinteraction center

Promise-to-pay Collection fact sheet Collection progress

Issue correspondenceEtc.

Execute Activities:

Measuring Collections Success


Parameters for Collection Decisions (current solution)

DunningProcedure A

Days in arrears>= 10 AND

last level = 0 ANDfrequency >= 7 daysAND amount >= 10





Amount> 10

Amount> 100

Amount> 500

Creditw.> 0

Creditw.> 25

Creditw.> x

Level 1No InterestCharges: 5

Level 3Interest: 4 %Charges: 5

Activities

Reminder call

Activities

Dunning noticeReminder call

Dunning A

ctivity Run

Dunning Proposal R

un

Integrated Score fromCredit Management


Dynamic Determination of Collection Activities using BRF*)

Collection Strategy A

Rule Set

Expressions:

Actions:

(Result of) PreviousCollection

Activity

Openamount

CollectionAmount

RiskClass

Age ofdebt

Etc.

Get Data

Formula

FunctionModule

Logicaloperators

Mathematicalfunctions

Date / timefunctions

Etc.

Function FKK_XXX

IF RISK-CLASS =HIGH AND

COLLAMOUNT >..

NEXTSTEP =SPECIAL_TREATMENT

Return Result

Return Score

Issue Message

Event

*) Business Rules Framework


CollectionsTeam 1Collections

Team 1

Collections Embedded in Organizational Structure

? Multiple independent collectionsorganizations can be set up

? Teams or individuals can bedetermined based on tasks andresponsibilities

? Taking into account absence ofagents

? Automatic determination andmanual intervention by collectionmanager

? Allowing workload balancing

Collection CenterRegion West

Postion:Collection Manager

Sandy

Responsiblefor CollectionsIn Region West

CollectionsTeam 1

CollectionsTeam 2

Postion:Team Lead

John

Responsiblefor PrivateCustomers

Postion:Collection Agent

CathyPostion:Collection Agent

Fred

For customersrange A-K

Responsible

For bankruptcustomers

Responsible


Responsible Determination

Standard Tasks and Rules

? Collection Center Responsibility for example based on business partner country, type of

business partner

? Collection Unit Responsibility for example based on collection activity, type of business

partner, risk class, postal code

? Collection Agent Responsibility based for example on business partner ID, contract account,

contract, collection amount


Tasks of the Manager Transaction

? Create new worklists

? Release new worklists

? Select worklists

? Update attributes of a worklists

? Select workitems

? (Re-)assign workitems to an agent or to a unit

? Unassign workitems

? Cancel workitems

? Reopen workitems


Created from To

Display Currency

Worklist ID End Date Closed


SAP

Net

Wea

ver/

XI

SAP ERP

Telephony DiallerEmail ServerFax Server

Interaction Center / WebClient

CollectionsWorklist Management

Multi-Channel Communications

Phon

e

Fax

Lette

r

E-m

ail

Archive

Worklist Management based on SAP NetWeaver

Multiple processingoptions

Worklist can beprovided to agents/teams for manualprocessing

Worklists can besubmitted to externalsystems (such asdiallers) via SAPNetWeaver / XI11

11

11

22

22

22


Worklist Overview and Collectors Progress

UnholdHold DialHang Up EndTransfer Dial Pad Not Ready ?Ready Wrap Up

My Collection Work Lists

Worklist Details My Work Progress

Worklist Description

Creation Date

Ranking Rule

Text

Mandatory reminder calls week 01

02.01.2006

Max 255 Char.

Oldest open items first, independent of risk

| |

Worklist Progress

Mandatory reminder calls week 01 10.10.06 500 400 100 60 125.385,00 EUR 30 %

Warning List Januar 15.02.06 1000 1000 0 0 261.615,00 EUR 0 %

??

??????

Worklist Overview Search Worklist Items

Total * 1500 1400 100 60 287.000,00 EUR 10 %

Description Due date Total entries Unassigned My items My open items Total amount Curr. % assign. to me

Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectionCollection WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter

UnholdHold DialHang Up EndTransfer Dial Pad Not Ready ?Ready Wrap UpAccept Reject

Fred Smart/New York City NY 10035

Customerin Collections Phone Outbound 0170 3699965Connected2:40 / 2:40 Phone 1

Interaction Center Lisa Miller

Assign next items automaticallyMy items

My progress today Worklist progress

# of items Percentage AmountStatus

Completed 40 40 % 7.200 EUR 29 %Resubm. 10 10 % 2.800 EUR 11 %

Perc. of Amt.

%

In process 50 50 % 15.000 EUR 60 %

Closed 0 0 % 0 EUR 0 %

New 0 0 % 0 EUR 0 %

0 %Cancelled 0 0 % 0 EUR

Total items 100 100 % 25.000 EUR 100

DRAF

T!


Work Items in a Work List

UnholdHold DialHang Up EndTransfer Dial Pad Not Ready ?Ready Wrap Up

My Collection Work Lists

Worklist Details My Work Progress

Worklist Description

Creation Date

Ranking Rule

Text

Mandatory reminder calls week 01

02.01.2006

Max 255 Char.

Oldest open items first, independent of risk

| |

Worklist Progress

Mandatory reminder calls week 01 10.10.06 500 400 100 60 125.385,00 EUR 30 %

Warning List Januar 15.02.06 1000 1000 0 0 261.615,00 EUR 0 %

??

??????

Worklist Overview Search Worklist Items

Total * 1500 1400 100 60 287.000,00 EUR 10 %

Description Due date Total entries Unassigned My items My open items Total amount Curr. % assign. to me

Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectionCollection WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter





Assign next items automaticallyMy items

My progress today Worklist progress

# of items Percentage AmountStatus

Completed 40 40 % 7.200 EUR 29 %Resubm. 10 10 % 2.800 EUR 11 %

Perc. of Amt.

%

In process 50 50 % 15.000 EUR 60 %

Closed 0 0 % 0 EUR 0 %

New 0 0 % 0 EUR 0 %

0 %Cancelled 0 0 % 0 EUR

Total items 100 100 % 25.000 EUR 100

DRAF

T!


P2P Open

Open item

Promise-to-pay

EvaluationRun

P2PFulfilled P2P Broken

CorrespondenceP2P initiated

Correspondence Update Credit-worthiness

Execute custom-specific activity

CollectionActivity Run

Worklist entryIf P2P is broken theoriginal open itemswill be evaluated

again by the collectionactivity run

Promise-to-Pay Overview

Temporarily no money

P2P-Category

Reason Code No printingPrint ParametersPromise to Pay with items

Create Cancel

Calculate interest

Promise to pay

Select items for Promise to Pay

DRAF

T!


Interaction Center Based UI for Collectors: Payment Promise


Payments

Other Clearing

Promised (partial) Payments/Payments |Original Items

PaymentsPromised (partial) payments

17.01.2006

Value Date

USD

Currency

0.00

OtherClearing

53.000000003600

PaymentAmountDocument

USD

USD

USD

Crcy

??????

Visa,***3123, 12/2007

PaymentVia

53,001.01.2006

53,001.02.2006

53,001.12.2005

AmountPromiseDate

Delete Payment Data Change Payment Data

Back Save WithdrawSubstituteChange Status Change

General Data | Correspondences

Creation Date

Created by

146.00 USD

13.00 USD

0.00 USD

Total Item Amount

Total InterestAmount

Total Charge Amount

18.11.2006

03.02.2006Next check

Reason

53.00 USD

0.00 USD

Check of Fullfillment Rate

Total Promise to Pay Amount

Status/CurrentFulfillment rate

Category

159.00 USD

Not calculated

Still open 119.00 USD

Currentlydue 66.00 USD

Lisa Miller

3 part. payments



Monday, January 9th 2006 5:43 pm


Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectonCollecton WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter

DRAF

T!


Processing Work Items

Additonal functions

? Collection fact sheet

? Extended collections history

? Action list to support collectors? Automatic resubmission of work

items? Link to respective functions

? Additional BI extractors


Collection Fact Sheet - Sample



Customer in Collections Phone Outbound 0170 3699965Connected2:40 / 2:40 Phone 1

Monday, January 9th 2006 5:43 pm


Identify AccountIdentify AccountInteraction RecordInteraction RecordCollectonCollecton WorklistWorklistCollect. Fact SheetCollect. Fact SheetPayment DataPayment DataDisputesDisputesPayment PromisesPayment PromisesInvoicesInvoicesAccount BalanceAccount BalanceItem DisplayItem DisplayAccount HistoryAccount HistoryPaymentPaymentPayment SearchPayment SearchDunning NoticeDunning NoticeInstallment PlanInstallment PlanDocument SearchDocument SearchKnowledge SearchKnowledge SearchCall ListCall ListEE--MailMailFaxFaxLetterLetter

Fullfill-ment

brokenUSD900,00800,0010023456

Date whenbroken

paid

open

Status

USD

USD

Crcy

200,00

1200,00

Totalamount

0,00

900,00

Openamount

10020644

300,0001.11.200612344456

Nex dueamount

Next duedateDocument

0,00

0,00

0,00

0,00

0,00

Open Payments

USD

USD

USD

USD

USD

Currency

Agreement 2

Contract 1

Agreement 1

Fred Smart

Description

10,00300,00No contract20,00800,00510000016001001Contract

400,00

1.100,00

2.500,00

Open Amount

150,00

30,00

250,00

AmountDue

510000016002Business Agreement

510000016001Business Agreement

5100000160Account

NumberCategory

Collection Workitem | Collection Strategy | Additional Collection Information

More Details

Risk Class

Locked due to

Exposure

Standard Address

Duration/Start of Partnership

Age / Date of Birth

Additional Information | Credit Segment | DisputesPromise to Pay | Last Interactions | Collection History

Collection Step First (friendly) Reminder Call Reminder Call

01.04.2006

Category

Trigger amount

Remaining Amount

Released

EUR

EUR

1.000,00

1.000,00

Status/ Mandatory

Processing Deadline

yes Creation Date 29.03.2006

Mo. Fr. 08:00 12:00 ?

16.02.2006Last Coll. Contact

Work item update | Notes

Sarah Cash * (if not unique)

Central Collection Department

Save Cancel

?Back 1 | 2 Forward?

Number of Promises broken within last 12 months ? Go

Fred Smart

X

04.07.2006

100%

Score

Acc. with Special Attention

Limit

36 Years 31.07.1969

175

Risk of Fraud

Very high Risk

400,00250,00

01.01.19987 Years

USDUSD

New York City NY 10035

Collector /Unit

Collection Center

Reassignm. Reason

Resubmission Date

Contact person

Contact hours

Contact person for all master data groups

Account Overview | Period Balances Sheet | Account Balance | Document Display

Disp. Locks Inst.

DRAF

T!


Extended Collections History

Description Currency Original Amount Still Open

Collection Run, 22.01.2007 EUR 29,50 29,50

Open Item 11310074/0001, due 20.12.2006 EUR 29,50 29,50

Collection Activity: Reminder Call

Reminder call, status: in process

Collection Run, 08.01.2007 EUR 59,60 29,50

Open Item 11310074/0001, due 20.12.2006 EUR 29,50 29,50

Open Item 11300342/0001, due 20.11.2006 EUR 30,10 30,10

Collection Activity: Reminder Letter

Reminder letter, status: printed

Incoming call, 11.01.2007

Promise-to-pay, status: broken EUR 59,60 29,50

Payment 8834590, 15.01.2007 EUR 30,10

Hierarchical display of collections details


Appendix:

Using BRF


? Application? An application is the software component that uses the BRF.

? Application Class? An application class is the highest level of organization in BRF.? All BRF customizing components must belong to an application class.

? Rule? A rule consists of exactly one expression whose functional result can be

either true or false, and of at least one action to be performed if theexpression is true.

? Expression? On the basis of a freely definable (calculation) rule, data of an

application object or data of objects related to the application object (orindeed any data at all) is processed, delivering a result of any (primitive)type.

Overview: Terminology I


Overview: Terminology II

? Action? Any manipulation of any data sets that makes sense from a business

point of view and that can be performed technically.? Actions can be dependent on a expression, in which case it is part of a

rule, or can be specified to execute unconditionally within an event.? An action may or may be part of a rule, but must be specified within an

event in order to be executed.

? Event? An event triggers rule processing. More precisely: rules are (usually)

assigned to an event.? Events are typically triggered at suitable points in the application. At

these events, rules that have been assigned through configuration arethen evaluated.

? Unconditional actions can also be specified in an event.


Overview Rules Definition

Dat

a R

eque

stAll data available in the system can be used toform the basis for the determination of theappropriate collection step:? Creditworthiness? Dunning Balance? Highest Amount of Items within Dunning History? Latest Due Date? Postal Code? Industry Code? Number of Broken Promise-to-Pay? Minimum Days in Arrears?

Decision Tree? The expression type of the

decision tree is used for thederivation of the collectionstep and the evaluationnumber

? All data requested can beused in the other expressiontypes (Ranges, Formulas,Truth Table etc.) to define aconditional step within thedecision tree. The result ofeach step is either false ortrue

? As target you define within thedecision tree the collectionstep

Col

lect

ion

Step

Collection steps are defined as constants:? Reminder Call? Enforcement Call? Enforcement Workitem?


Data Request - Examples

Formula SY-DAT minus LATEST DUE DATE from Items Dunning History ($FKKMAZE-FAEDN withaggregation MIN)

Minimum Days inArrears

PPSTA = NOTFULFILLED

COUNTPPSTADFKKPPNumber of BrokenPromise-to-Pay

IND_SECTORBUT000Industry Code

POST_CODE1FKK_GPSHADPostal Code

MAXMBETM$FKKMAZEHighest Amount ofItems within DunningHistory

MSALM$FKKMAKODunning Balance

BONIT$FKKMAKOCreditworthiness

Where-Condition

AggregationFieldTableAttribute


Configuring the decision tree (1/3)



FeaturesThe maintenance type determines iftargets can be maintained only on theend node or on any node. For thedetermination of the collection step atarget shall only be maintained on theend node of a branch.

When setting up the decision tree youcan create new nodes using thefollowing options: Create Node as First Subnode

Create Node as Last Subnode

Create Node at Same Level, After

Create Node at Same Level, In Front

Delete Node, including Subnodes



FeaturesConditions are Boolean Expressions.From the decision tree you can: Select Existing Condition

Create New Condition

Remove Condition

Navigate to Condition

Targets represent the collection steps.From the decision tree you can: Select Target of Same Type

Select Target of Different Type

Remove Target

Create New Target

Navigate to Target


Configuring the action for the collection step & eval. no.

FeaturesIn this action you can assign theexpression for deriving thecollection step

FeaturesYou can use the existingexpression types to define a pre-defined valuation number forprioritizing your worklists.Additionally you can enhance thedunning history header table tocover additional scores such aspayment history, invoice historyetc. which can be used as a valuevector.


Create and Assign Event per Collection Strategy

FeaturesWithin the event the individualrules are maintained.

If you need additional data whichis not part of the context you caninitialize additionl data for thecontext.

Within the event you have toassign the action for determiningthe collection step and the score.

FeaturesApplication class and event then need to beassigned to the collection strategy.


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Collections Management