ATUL PATANKAR[ASUG INSTALLATION MEMBER
MEMBER SINCE: 2000
LINDA WILSON[ASUG INSTALLATION MEMBER
MEMBER SINCE: 1999
JUERGEN LINDNER[SAP POINT OF CONTACT
MEMBER SINCE: 1998
]Implementing FSCM Collections and Dispute ManagementRoss Fisher & Maggie Okrzesik
Session Code: 2211
[Real Experience. Real Advantage. 2
Agenda and Learning Points
Cardinal Health Overview
Collections and Disputes Management Overview
Allow for plenty of configuration and testing time
Ease of use for Collections and Disputes staff
System flexibility
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Return on Investment
Work list prioritization versus previous manual effort
Use of workflow routing to improve customer response time
Use of workflow routing to bring internal controls and reporting to the disputes process
[Real Experience. Real Advantage. 8
SAP Collections Management
Collections Management is a component of FSCM (Financial Supply Chain Management)
Collections Management uses worklists based on customizable collection strategies to drive Collectors work activity
Ability to create and track Customer Contacts, Resubmissions, and Promises to Pay
Cardinal Health has an almost 100% vanilla implementation
[Real Experience. Real Advantage. 9
CAH Prior to FSCM
Processes defined by various Business Units each one different
From base AR system run an aging, move data to Excel, manipulate data into usable format
Manager/Supervisor manually assign work to Collections staff
[Real Experience. Real Advantage. 10
Cardinal Health Collections Org Structure
Profile: CARDINAL
Segment: CARDINAL
Company Code: 1130
Company Code: 1970
Company Code: 1960
LARGEACCTS
DOC OFFICE
HOSPITALS
CLINICS
RETAIL
Strategy: CAH0002
Strategy: CAH0005
Strategy: CAH0004
Strategy: CAH0003
Collection Profile
Collection Segment
Company Codes
Processor:
GREWALN
Processor:
WESTHOD
Processor:
BIENKAT9
Processor:
ADKINSC9
Processor:
GARAPAL
Collection GroupsCollection Specialists Collection Strategies
Segment: 2140
Segment: 2250
[Real Experience. Real Advantage. 11
SAP Collections Management Strategies
Collection Strategies are the brains behind the Collections Worklist
Customizable strategies based on business needs
Standardized across all Cardinal Business Units
[Real Experience. Real Advantage. 12
SAP Collections Worklist Account Detail
UDM_SUPERVISOR or UDM_SPECIALIST
[Real Experience. Real Advantage. 13
SAP Collections Worklist Invoice Detail
Drilling into an account provides invoice and payment details
[Real Experience. Real Advantage. 14
SAP Collections Customer Contact
Every attempt to reach a customer requires a Customer Contact
Result of Customer Contact affects Open vs. Completed Items
A Customer Reachedresult will determine the Last Contact date
Contact Person details populated from Customer Master
[Real Experience. Real Advantage. 15
SAP Collections Promise to Pay
Promise to Pays are evaluated by the transaction FDM_ JUDGE
Payments that are not received by Promised For date are considered broken
Broken promises move customers higher on the work list depending on Collection Strategy
Promised amounts are excluded from Customers To Be Collected total
[Real Experience. Real Advantage. 16
SAP Collections Resubmission
A Resubmission can remove an account from your work list if a contact is unavailable
Resubmission Dates are an available field on Worklist Account View
Resubmissions that are marked as confirmed are deleted via UDM_RSM_DELETE
[Real Experience. Real Advantage. 17
SAP Collections Management Lessons Learned
Understand your own collections organization structure before beginning configuration
Understand your customers payment habits to configure collections strategies
Opportunity to promote change and improve efficiencies in collections organization
[Real Experience. Real Advantage. 18
What is a Dispute?
Customer disputes can manifest in the form of:
Unpaid invoices
Short paid invoices which create residuals during cash application
Customers may dispute items for a variety of reasons:
Price, tax, or quantity errors
Deduction discrepancies from delivery errors, special pricing contracts, equipment malfunctions, property damage, etc.
[Real Experience. Real Advantage. 19
SAP Dispute Management Benefits
Controls and streamlines the dispute process
Enter Dispute Cases when and where they arise
Enables cross-department dispute resolution
Consistent view of Dispute Case
Organizes and stores all information related to a dispute
Up-to-date information available to all SAP users
Integrated in financial processes
[Real Experience. Real Advantage. 20
What is SAP Dispute Management?
SAP Dispute Management is part of SAP Financial Supply Chain Management (FSCM)
Contains functions for processing between invoicing and payment if there are customer discrepancies
FSCM Dispute Management
[Real Experience. Real Advantage. 21
Cardinal Health Dispute Case Creation
Majority of Cardinals Dispute Cases are created automatically
[Real Experience. Real Advantage. 22
SAP Dispute Case Workflow
Self-Directed Workflow
When a Casual User is assigned as a Dispute Case Processor, an email is generated via workflow
Regular users are defined in UDM_CASE_PROCESSOR
[Real Experience. Real Advantage. 23
SAP Dispute Case Routing
Dispute Cases at Cardinal are routed automatically Routing is based on Company Code and Reason Code
Routing can occur even outside of the Collections Organization
Quantity2140
Quantity2140
Pricing1960
Tax
2250
Customer Service Center
Collector
Tax & Audit Team
[Real Experience. Real Advantage. 24
SAP Dispute Case Processing
UDM_DISPUTE is the main transaction for all dispute processing
Search for My Dispute Cases
Search for Disputes based on a customizable Search Profile
[Real Experience. Real Advantage. 25
SAP Dispute Case Processing
A Debit Dispute Case
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SAP Dispute Case Workflow
Escalation Workflow Escalates to Supervisor when the Processing Deadline Date is passed
The Supervisor is assigned as the new Dispute Case Processor
If the Supervisor is a Casual User, receives a Self-Directed email
STAFF
MANAGER
SUPERVISOR
[Real Experience. Real Advantage. 27
SAP Dispute Case Workflow
Approval Workflow Used for Write-Off approvals
Approvals are requested from the Coordinators organizational hierarchy via email and Universal Worklist
Approval level based on dollar amount of the write-off
Ability to attach documents
Approved cases written-off in a nightly run of UDM_AUTOWRITEOFF
[Real Experience. Real Advantage. 28
SAP Dispute Management Lessons Learned
No credit or cleared item dispute case capabilities in ECC 6.0
Included in Enhancement Pack 2 along with other items
Inability to dispute an item for more than one reason
Standard workflow could be enhanced
Ability to auto-determine field values requires BAdi work
[Real Experience. Real Advantage. 29
[
] Thank you for participating.SESSION CODE: 2211
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