2.5-SAPience-Be User Day 2011 - SAP Collections Management to Ease Cash Collection

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Lamot, Mechelen October 12, 201 1 SAP Collections Management to ease Cash Collection A fast track implementation at a Belgian producer of Aluminium profiles Christophe Claes Alexandra Lecuyer 

Transcript of 2.5-SAPience-Be User Day 2011 - SAP Collections Management to Ease Cash Collection

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Lamot, MechelenOctober 12, 2011

SAP Collections Management to ease CashCollection

A fast track implementation at a Belgian producer of Aluminium

profiles

Christophe Claes

Alexandra Lecuyer 

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Agenda

1. Company Presentation

 – CSC

 – The client2. SAP Collections Management to ease Cash Collection

 – Mission and Objectives

 – Scope

 – Current tools and process – CSC challenges

 – SAP Collections Management implementation

 Approach

Solution Expected Results

3. Lessons Learned

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CSC Presentation

93,000 employees active

in 90 countries

World leader in leveraging IT to develop business

solutions and services for our customers

$16,2B (USD) in revenue for the 12 months

ended December 31, 2010.

Serving 15 industrieson six continents

Permanent CSC Locations

Other Client Engagements

SAP Pinnacle Awards for Customer Satisfaction and Sustainability (2010)

5 SAP papers selected at SAP World Tour Meets Sapience (2010)

Top 5 World’s Most Admired Companies, IT services (Fortune Magazine, 2011)

Leader, SAP implementation providers (Forrester Wave,2009)

Founded in1959

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Client Presentation

• Client’s presentation (NDA at this stage):

• Belgian producer of Aluminium profiles

• Fast Growth

• International expansion

• Client’s challenges

•  A lot of overdue invoices due to cashflow problems

• More difficult to collect the old outstanding invoices

• Increased bad debt expense

• High DSO

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Mission and objectives

• Mission :

• Create a template of standard SAP Collections Management

(part of a Global European SAP implementation) for Pilot countryand roll it out to other countries

• Key Objectives of the tool:• Support the Cash collection teams in their daily duties (contact

customers to chase for payments, record and track customer 

contact,..),

•  Allow the management to follow the result of the actions taken

• Low cost but high impact implementation

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Scope

• Keep the Credit Management in the traditional SAP FI& SD

modules and keep the door open for future SAP Dispute

Management implementation

• Only operational companies dealing with external customers

are taking part in Collection Management

• Countries involved:

 – Pilot: 2 entities in Belgium

 – Roll out: UK, France, Poland, La Reunion

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Current Tools Overview

• Current Cash collection tools:

• Data are stored in different tools:

• ERP (non SAP) for:

• historical and open items data

• client contact detail

• cash collection data

• ....

• BI tools (non SAP) for:

• actions

• working list with all actions

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Current Process Overview

• Current Cash collection Process:

• The same customer has a different customer number in each

entity• Each collection specialist is assigned to a customer 

• The worklist is split per customers based on the actions entered

previously

• The actions are not prioritized in the worklist

• The actions are not compared to the behaviour of the customers

(e.g. Payment)

• There is no payment plan functionality

• There is no written procedure

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CSC Challenges

• CSC’s Challenges:

•  Assure high added value with low implementation cost

• Missing like payment plan functionality in SAP EhP 4.

Workaround was investigated and built. In the meantime it has

been resolved with the implementation of EhP5.

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SAP Collections Management

- Implementation Approach

• Global Template: standard approach

• The solution was configured mostly in a standard way

• The design, build and test phase took less than 2 months

• Start up planned in January 2012

June 2011May 2011Lead-time

Common

Design

Common

Build and TestRoll out

Jan 2012

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SAP Collections Management

 – Solution Overview

• The FSCM Collections Management solution focuses on the

key business process of "cash collection".

• It allows to:

• support the evaluation, identification and prioritisation of the

clients

• manage the collection of receivables

• manage the cash collection department

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SAP Collections Management

 – Solution Description

• 3 different roles have been identified for this client:

• Collection Specialist responsible for collecting the Cash

Access

Worklist

Prepare

customer

contacts

Contact

Customer

• Personalized

worklist

automatically

created

• Search function

• Key customer

data: FI

• Previous contactdetails

• Contact Person

details

• Promises to pay

• Resubmissions

• Detail on

Customer

contact

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SAP Collections Management

- Solution Description

Amount

promisedPriority Amount to

be collected

Amount

dunned

Detail per Business Partner: open items,

payments, Promise-to-Pay, previous contact,….Business Partner Master Data

Risk

category

Credit

limit

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SAP Collections Management

- Solution Description

• Collection Manager responsible for controlling the cash

collection process

Define

collection

strategies

Maintain

collection

groups

Adjust BP

Master Data

Supervise

collection

process

• Create, adapt,

assign collection

strategies

• Assign specialists

to collection

groups

• Enter substitutesfor specialists

• Assign collection

Specialists to BP

• Temporary

Assignments

• Check status of 

worklist

processing

• Re-assignworklist items

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SAP Collections Management

- Solution Description

Collection Group and Specialist

assigned to BP

Strategy defined

Strategy assigned to

Collection Group

Collection Supervision

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SAP Collections Management

- Solution Description

• Collection Management Administrator responsible for data

synchronization and worklist creation

Replicate

customer

master data

Transfer

data from

Accts .Rec

Create

worklistsMonitoring

• Master data

synchronization

• Contact persons• Collections Mgt.

specific data

• Initial transfer

• Periodic transfer• Selected transfer

• Create worklist

Items

• Monitor master

data

synchronization• Monitor parallel

runs

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SAP Collections Management

- Solution Description

Customer

Master Data incl.

Contact person

Business

Partner (BP)Customer

Integration

Accounts Receivable SAP Collections Mgt

1

2

 SAP AccountsReceivable

• Open Item Data

• Dunning Data

• Payment Data

• Customer Data

Send FI-AR

via

Business Partner

Key Mapping

SAP CollectionsMgt

Replicate customer master data

Transfer data from Accts .Rec.

3 Create worklists

• 1 customer = 1 unique

customer number = 1 unique

Business Partner

• Automatic creation of BP

• Each specialist has his

own worklist

Select

business

partners

Valuate

according

to strategy

Assign

Items to

specialists

Store

worklists

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Expected Results

Working

capital

AR

AP

InventorySales

1. Standardize and optimize process

2. Follow up cash collection actions in a

central place

3. Keep the cash collection cycle as short as

possible

=> Reduced working capital

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Lessons learned

• A short design phase is feasible but Business Key User is

required to define:

• a clear Organisational Structure

• the proper collection strategy

• Ensure correctness of customer contact details in Master 

Data• Reporting for Collections management is to be extended with

SAP BI reporting functionality

• Implementation time can be short if standard can be kept• Ehp5 brings a lot of value: payment plan, resubmission at the

level of an invoice, correspondence to the BP

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Thank you!