SAP REVENUE MANAGEMENT- CONTRACT ACCOUNTINGFOR END-TO-END SYSTEM EFFICIENCY

ARE YOU THROWING MONEY DOWN THE DRAIN?

Telecommunications companies are at the forefront of techno-logical innovation, developing and operating state-of-the-artinfrastructure and services. But when it comes to managing thefruits of their labors revenues and collectibles many of themrely on unwieldy, outdated systems that are not automated, notintegrated, and severely inflexible.

If your company is among those struggling with an archaic rev-enue system, you are already painfully aware of the losses such asystem imposes in revenue, for example, and in customer sat-isfaction. An outdated revenue system prevents you from fullycapitalizing on the expensive investments you have made ininfrastructure and services. In effect, it is causing you to throwmoney down the drain.

A LEADING-EDGE SOLUTION FOR A LEADING-

EDGE INDUSTRY

SAP Revenue Management-Contract Accounting (SAP RM-CA) is an end-to-end solution that gives you the controland visibility you need to ensure revenue and eliminate leakage.Volume-tested to 50 million customer accounts, it lets youautomate all critical processes. And the solutions predefinedinterfaces and open architecture allow for its seamless integra-tion with any other SAP or non-SAP system, including those for customer relationship management (CRM), billing, andgeneral ledger. That helps you avoid costly custom program-ming and time-consuming maintenance.

To remain competitive, tele-

communications companies

have invested in the IT infra-

structure that allows them

to provide leading-edge ser-

vices. But many of them still

lack a flexible system for

managing their revenues and

collectibles. And an outdated

business system leads to in-

efficiencies and errors the

kind that annoy customers

and prevent companies from

maximizing returns on their

high-tech services. SAP

resolves this problem with an

end-to-end solution SAP

Revenue Management-Con-

tract Accounting that auto-

mates critical processes,

ensures efficiency, eliminates

error, and enhances cus-

tomer satisfaction.

SAP forTelecommunications

Network Fixed Line Mobile IP

FROM THIS COMPLEXITY . . .

. . . TO THIS

CONSUMER BILLING (Billing Systems A, B, C)

CONSUMER BILLING (Billing Systems X, Y, Z)

Back-Office

Financials

e. g. mySAPFinancials

Separate AR System

Network Fixed Line Mobile IP

CONSUMER BILLING (Billing Systems A, B, C)

CONSUMER BILLING (Billing Systems X, Y, Z)

PRODUCT BILLING (e. g. in SAP)

Back-Office

Financials

e. g. mySAPFinancials

PRODUCT BILLING (Billing e. g.in SAP)

SAP Receivables Management

(RM-CA)

Mediation Rating InvoicingMediation Rating InvoicingMediation Rating Invoicing Receivable Management

Mediation Rating Invoicing

Product Rating Invoicing

Mediation Rating InvoicingInvoicingMediation Rating

Mediation Rating InvoicingMediation Rating InvoicingMediation Rating Invoicing

Mediation Rating InvoicingMediation Rating InvoicingMediation Rating Invoicing

Separate ARSystem e. g.SAP FI-AR

Product Rating Invoicing

Single Point of

Integration

What You Can Expect from the SolutionTelecommunications companies around the globe are alreadybenefiting from SAP RM-CA through:

Reductions of 10% or more in days sales outstanding Drops of 5% to 15% in uncollectible accounts Improvements of up to 15% in processing incoming payments

In some cases, the solution has reduced communications feeswith banks by $5 million per year. In others, mass parallel pro-cessing has resulted in savings of up to $7.3 million on IT costs.You could see similar improvements.

EFFICIENT, EFFECTIVE REVENUE MANAGEMENT

SAP RM-CA provides you with extensive accounts receivableand collections-handling capabilities geared to the special re-quirements of your industry. It can process many types of cus-tomer-related transactions posting, payments, dunning automatically and in parallel. And it can support high docu-ment volumes in environments where manual processing ofreceivables is not feasible and where automation is essential.

Moreover, the solutions scalability and excellent performanceresult in smooth day-to-day operation. SAP RM-CA modelsmany different types of payments and lets you tailor the func-

tions precisely to your organizations needs. It also enables elec-tronic data exchange with banks, credit-card companies, andexternal collections agencies. And it supports credit scoring,installment plans, interest calculation, deferrals, returned items,third-party revenue handling, and dunning and customer cor-respondence, including account statements.

Through its integration with other SAP capabilities, the solutionallows you to manage a customers entire financial life cycle credit management, customer care (via your interaction cen-ter), dispute management, and electronic bill presentment andpayment. Powerful parallel processing capabilities and a highlyefficient system architecture enable it to perform at many timesthe level of conventional accounts receivable systems. Dunning,for example, can be executed on a daily rather than a weeklybasis, resulting in improved cash flow.

Putting You in the Drivers SeatSAP RM-CA ensures data consistency and correct accountassignments, even when you have several thousand users withlimited training accessing functions such as credit note entry.The solution also gives you a firm handle on receivable items,to prevent delays in cash flow and allow early detection ofdelinquency. Automation of routine tasks leads to substantialreductions in time-consuming, error-prone manual tasks. Andby tracking third-party charges, the solution gives you completecontrol over payments to partner companies.Built-in integration with upstream systems (such as mySAPCRM) and downstream systems (such as the general ledger,treasury, and cash management) drastically reduces implemen-tation time.

In-Depth Analysis of Customer BehaviorThe solution also exchanges data with mySAP Business Intel-ligence. This gives you a wide range of reporting and analyticsfeatures. It also allows you to explore accounts receivable infor-mation from a variety of perspectives to gain new insight intopayment trends and more. This helps you close the loopbetween receivables management tasks and new marketing andsales activities.

BENEFITS AT A GLANCE

With SAP RM-CA you can:

Reduce costs through a high degree of automation and efficiency

Get a firm grip on your revenue stream and leverage flexi-ble collections options

Reduce write-offs through better tracking of claims Enhance your CRM strategy through a single, consistent

view of customer and account data

Increase satisfaction by handling payment situations accord-ing to customer needs

Boost the accuracy of postings through full integrationwith your general ledger

Gain insight into the profitability of your productsthrough powerful reporting and analysis capabilities as well asthrough integration with your financial controlling system

Fine-tune your cash management with accurate forecasts,made possible by real-time integration of receivables withtreasury and cash management

Ensure full compliance with legal requirements todayand in the future

Access accurate, real-time financial and performancedata

Effectively manage third-party charges and ensure that it isreally the customers, not you, who pay for partner companiesoutstanding receivables

CUT COSTS, ACCELERATE CASH FLOW

With SAP RM-CA, you can streamline all aspects of your receiv-ables management processes. The solution helps you improvevital business metrics, including the order-to-cash cycle, profitmargin, per-unit operating costs, and overall cash flow. And byintegrating revenue processes into your total enterprise system,it helps you maximize return on all your IT investments.

For more information on this comprehensive answer to manyof your revenue management needs, visit:www.sap.com/solutions/industry/telecom/keycapabilitiesor call your local SAP representative.

50 065 941 (03/10) 2003 by SAP AG. All rights reserved. SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, andother SAP products and services mentioned herein as well as their respective logos are trademarks or registeredtrademarks of SAP AG in Germany and in several other countries all over the world. MarketSet and EnterpriseBuyer are jointly owned trademarks of SAP AG and Commerce One. All other product and service names men-tioned are the trademarks of their respective companies. Data contained in this document serves informationpurposes only. National product specifications may vary. Printed on environmentally friendly paper.

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