‘7126, 1:06 po. Collections Management -1- SAP Community SAP Community > Products and Technology > Enterprise Resource Planning > ERP Blogs by Members > Collections Management -1 Enterprise Resource Planning Blogs by Members Gain new perspectives and knowledge about enterprise resource planning in blog posts from community members, Share your own comments and ERP insights today! Blog What are you looking for today? Collections Management -1 S27 sanilbhandari Product and Topic Expert ° 10-07-2014 10:55 AM 14kudos | © 37,233 The cash collection against due and overdue items has become a very important function in increasingly competitive global marketplace for most organizations. The collections management function within SAP FSCM supports in active receivable management and helps to prioritize the customer receivables function based on defined rules. These priorities which are set up can than be used to set up distribution of collection work to collection specialists who can than record a history of collection related contacts with the customers. titpsileommunity sap.convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-1ba-p/13256178 148as726, 408 pm. Callections Management -1- SAP Communty The Collection Module functionality is integrated well with the Dispute Management and the FI-AR Application to help provide businesses with the ability of a well focused and targeted AR Collections and reduce the pending cash cycles. The key configurations steps for Collections Management are as under: Configuring Colle: n Strategy bitps:/community sap.comSlenterprse-resource-planning-biogs-by-membersicolectlons-management-iba-p 2186728,104 pm Collections Management -1- SAP Community The first step in configuration of collections management is to define a collection strategy. It is important step, since it decides the prioritization of customers for collections and also decides the information in the worklist which is used for collections management. The prioritization of customers is done based on certain rules. These rules could be parameters like: = Currency of the Due Bills - Ageing of the over due items - Risk Category of the customers in credit management There are standard delivered strategies which can be used (SAMPLE0001). However, in most cases the collection strategy is configured based on the business requirements. The keys steps which are involved in defining a collection strategy are as under: - Define Basic Rules - Define Collection Rules - Process Priorities titpsleommunity sap.convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 3186817126, 1:04 pm. Collections Management -1- SAP Community - Defining derivation of priorities Define Basic Rules - The conditions defined in the Basic Rule govern the prioritization of Customers or Business Partners for Collections Management. There are lot of standard rules which are delivered by SAP to decide on the prioritization, but a BADI, UDM_BASIS_RULE is also available for defining additional rules. The configuration path for defining a rule is as shown under: Display IMG -ntps:i/eommunty.sap.comiSientorpise-tesource-planning-blogs-by-memberscolecions-managoment-tfba-p/13256178 g4817126, 1:04 pm. Collections Management -1- SAP Community Toto Al Zane Overt Stee Dys MS moon un of dh an vet ce TocdefAlTareDve wen nae is ete Caleced as mocooone Bren Presa to Fay acs mccoeaons Tota of nts fo Outs esto. As poneoe (usta as 96 ss un nun, 8 = aSHEODS Tate 6a vests due th east. UIRSHOONECOE Suet ma Contac Lapa POS moses Svcs cute! Cota as Da seDnEcone eas Frei al dung Fe. secre atone! a Define Collection Rules - The next step is to define a collection rule to be assigned in the collection strategy. The collection rule will have the basic rules for creation of a collection worklist. -ntps:i/eommunty.sap.comiSientorpise-tesource-planning-blogs-by-memberscolecions-managoment-tfba-p/13256178817126, 1:04 pm. Collections Management -1- SAP Community Define Collection Strategy - The next step in Collections Management is to define a collection strategy. The collection strategy performs the below key functions: -ntps:i/eommunty.sap.comiSientorpise-tesource-planning-blogs-by-memberscolecions-managoment-tfba-p/13256178‘17126, 1:06 po. Collections Management -1- SAP Community - Prioritize the Customers for Collections - Display the currency for worklist display - Define the time period in which the Customer receivables are to be sorted ~ Define the integration with Dunning for Collections Management titpsleommunity sap.convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 78.-ntps:i/eommunty.sap.comiSientorpise-tesource-planning-blogs-by-memberscolecions-managoment-tfba-p/13256178817126, 1:04 pm. Collections Management -1- SAP Community (i) (Ves) GALS) (Se =A =a) | reat scoters “ion "autor | ae of vets [ane co oo ATs Coss -ntps:i/eommunty.sap.comiSientorpise-tesource-planning-blogs-by-memberscolecions-managoment-tfba-p/13256178728,104 pm Callections Management -1- SAP Community ‘Once a collection rule has been assigned to the collection strategy, the system calculated the valuation points per collection rule to determine the priority for creation of worklist for collection. Determine the priority & derivation of Collection Rule - Once the collection strategy has been defined, the next step is to determine the priority and the derivation of Collection rule through the collection strategy. The path to configure a collection priority is as shown below: titpsleommunity sap.convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 0186‘7126, 1:06 pom. Collections Management -1- SAP Community Display IMG basting BC Sets, Stucure © [Br __ SAP Customizing implementation Guide (B © Activate SaP ECC Extensions ‘SAP NetWeaver Enterorise Structure Cross-Applcation Components ‘Auto Infrastructure SAP wApp Racourca and Portfolo Managment (SAP xRPM) Finance Accounting Financial Accounting (ew) Finanal Supply Chain Managernent b Biler Drect b Cesh anc Liquidity Management > Collections Management = Basic Settings for Colections Nanagement EB Wake Settnas in Accounting Basic Data Collection Strategies b Basic Rules b Collection Rules By ® Process strategies ww qeverses D ay © deine Pibiies © betne Demvaton of Pron Hrganizational Structure busines Partners Promise to Pay customer Contacts titpsleommunity sap.convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 16‘17126, 1:06 po. Collections Management -1- SAP Community Change View "Priority of Worklist Item”: Overview ery High High 8 Medium ls Low [El eaon. | Entry 3 of 4 The key aspect in determination of the priority for a customer is the calculation of valuation and percentage valuation. We have seen that in the configuration of a collection strategy, each rule is assigned a valuation point. When the collection strategy is executed, system determines the valuation points for each collection rule. The points for each collection rules are added and the overall valuation points determined for a customer. -ntps:i/eommunty.sap.comiSientorpise-tesource-planning-blogs-by-memberscolecions-managoment-tfba-p/13256178 218681724, 104 pm Callections Management -1- SAP Community The proportion of these valuation points to the maximum valuation points that can be a determined by the system results in percentage valuation. The percentage valuation is assigned to the priority to generate the worklist. Change View "Priority Based on Percentage Valuation": Overy Entry 1 of + Define Organizational Structure for Collections Management -ntps:i/eommunty.sap.comiSlentorpise-tesource-plannng-blogs-by-memberscolections-management-fba-p/13256176 13186‘17126, 1:06 po. Collections Management -1- SAP Community The collections management defines a priority for each customer and assigns the same to a worklist to be actioned on by a collections specialist. This is achieved by assigning a collection profile to a Business Partner in FSCM created for every customer-The other important activity is to activate the company code for collections management. The path to activate the company code for collections management is as under: Display IMG ee Existing BC Sets c structure c ‘SAP NewWeaver By Enterprse structure By Goss-Appicaton components Auto-ID Infrastructure ‘SAP xApp Resource and PortTolo Management (SAP »RPM) ance accountng Fnancal Accounting (New) Financial Supply Chah Management p Bile Diect > ‘cash and Ligudity Management Collections Management Basc Settings for Colections Management in Accounting gueosce yany Codes for SAP Collections Management. ‘ALE Business Process Se Colection Strategies Table View Edt Goto Seketion Utitiex™) System Help , FB Cee BN aAnHe BA OS hange View "Company Codes in Collections Management": Overview Phew ertes [SSB] ‘Company Codes in Collections Management coca a Fisno ta) hs:teomuny so conttnurpise-esauce planing bogs--rerousolucon-managoment-fe-9/13288176 sais817126, 1:04 pm. Collections Management -1- SAP Community The next step is to determine the collection segmentThe collections segment groups together data for a customer from one or more than one company codes for collections management. This includes transnational data as well as data from credit management, when the link is also specified between collections management and credit management. The path for the same is as shown below: Wake Settings in Accounting Basic Data [2 ® Define Company Codes for SAP Collections Maragement ALE Business Process. Base Rules Colaction Rules By @ Process suateges Priorities __ Organizational Structure By deine organtational structure [© veine colection segments -ntps:i/eommunty.sap.comiSlentorpise-tesource-plannng-blogs-by-memberscolections-management-fba-p/13256176 15186817126, 1:04 pm. Collections Management -1- SAP Community SSE theo Sener 5 oscar CHE) Et Goecton Seer vone Gok seomert 5 -ntps:i/eommunty.sap.comiSlentorpise-tesource-plannng-blogs-by-memberscolections-management-fba-p/13256176 161867126, 1:06 po. Collections Management -1- SAP Community Change View “Assign Credit Segments to Collection Segment”: Overview 4 a = CiDefine Collection Seame |Assign Company Cod GBasagn creat segme [eae 000 IDES AG 000 ‘DES UK The next step is to define the collection profile. Each collection profile is than assigned to a business partner, which completes the link of a customer master to collections management. The path to define a collection profile is as under: -ntps:i/eommunty.sap.comiSlentorpise-tesource-plannng-blogs-by-memberscolections-management-fba-p/13256176 186Collections Management -1- SAP Community BB © vetne company Codes for SAP Colectons 1 ALE Business Process Basc Rules Collection Rules EB ® Process strategies Prioties Organizational Structure __ Define Organizational structure EB ® define Collection Seaments [& ® define Collection Profies allection Profile US (especialy for Credit Mat. ‘lection Profie Europe collection Profile US. -ntps:i/eommunty.sap.comiSlentorpise-tesource-plannng-blogs-by-memberscolections-management-fba-p/13256176 1818s817126, 1:04 pm. Collections Management -1- SAP Community The collection segment is assigned to a collection profile. Ccolection Profle Eurooe The next step is to determine the people who will be contacting the customers for follow up on collections. These are designated as collection specialists in the system. The specialists are grouped together as Collection Group, which are than assigned to a -ntps:i/eommunty.sap.com/Slantorprise-tesource-planning-blogs-by-membersicaliections-management-trba-p/13256178 19186817126, 1:04 pm. Collections Management -1- SAP Community collection segment. The configuration path for the same is as under: Display IMG _Basic Data By © Define Company Coces for SAP Collections Management ALE Busness Process ALE Busness Process Collection Stateaies Orcanzatonal Structure. Business Partners Dromisa to Pay By © Create us 1 © create Elamant Typo By © Create attrbute Profle o Text Profle By ® Greate Status Profi! By & define number Range interval for case By © pete case types “Process integration Ee © Define Automatic Status Changes > © Define Text 1D for Notes qo titpsileommunity sap.convtSlenterprse-resource-planning-biogs-by-membersicollctons-management-ba-p/13256178 23186417126, 1:06 po. Colections Management 1 SAP Communty aE Collectons Mana aaa [FI_PPAY Collctons Manag..2) Generally the standard case type F_PP is used for creating a Promise to Pay. However, one can use own case type as well and assign the necessary Attribute and status profile for promise to pay. The other important step is to set up the integration of promise to pay -ntps:ifeommunty.sap.comiSiontorpise-tesource-planning-blogs-by-memberscolecions-management-tfba-p/132561767124, 08 pm Colections Management -1- SAP Community with FI-AR. You specify the case type to be used for Promise to Pay and the no of days for tolerance which needs to be considered before the promise to pay can be considered to be broken. B & Define Company Codas for SAP Collections Management ALE Busness Process -ntps:i/eommunty.sap.comiSientorpise-tesource-planning-blogs-by-memberscolecions-managoment-tfba-p/1325617847126, 1:06 po. Collections Management -1- SAP Community -EP Collections . B Once the above steps have been completed, we are ready to use Collections Management. The steps for using collections management in integration with FI-AR and dispute management along with the required master data set up will be followed up in the next document in this series. -ntps:i/eommunty.sap.comiSientorpise-tesource-planning-blogs-by-memberscolecions-managoment-tfba-p/13256178 2686‘17126, 1:06 po. Collections Management -1- SAP Community -ntps:ifeommunty.sap.comiSiontorpise-tesource-planning-blogs-by-memberscolecions-management-tfba-p/13256176 278‘17126, 1:06 po. Collections Management -1- SAP Community -ntps:ifeommunty.sap.comiSiontorpise-tesource-planning-blogs-by-memberscolecions-management-tfba-p/13256176‘17126, 1:06 po. Collections Management -1- SAP Community -ntps:ifeommunty.sap.comiSiontorpise-tesource-planning-blogs-by-memberscolecions-management-tfba-p/13256176‘17126, 1:06 po. Collections Management -1- SAP Community -ntps:ifeommunty.sap.comiSiontorpise-tesource-planning-blogs-by-memberscolecions-management-tfba-p/13256176‘17126, 1:06 po. Collections Management -1- SAP Community SAP Managed Tags: SAP ERP, SAP S/4HANA Finance, FIN (Finance) Tags: titpsileommunity sap.convtSlenterprse-resource-planning-biogs-by-membersicollctons-management-ba-p/13256178 31186‘17126, 1:06 pom. Collections Management -1- SAP Community bem Business cash _—colllection credit dispute _—_dispute case dispute management enterprise resource planning ERP _ financials fscm credit management Profile _—_ receivables management SAP sap erp financials speci udm supervisor worklist 25 Comments former_member200703 Active Contributor ist transaction treasury tlm =—_ udm speci °° 11-05-2014 11:40 AM 0 Kudos Hi Good work Thanks for Sharing... awaiting the coming Doc. Regards Mahmoud El nady SS sanilbhandari Product and Topic Expert titpsileommunity sap convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 32186417126, 1:06 po. Collections Management -1- SAP Community Q 11-05-2014 4:15 PM 0 Kudos Thanks so much Regards Sanil Bhandari © 11-16-2014 5:39 AM 0 Kudos Hi, Thanks for sharing this material with us. Regards, Cristina. titpsileommunity sap convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 318681724, 08 pm Collections Management -1- SAP Community S07 sanilbhandari Product and Topic Expert °° 11-17-2014 7:46 AM 0 Kudos Thanks Cristina regards Sanil Bhandari former_member198650 Active Contributor © 12-06-2014 10:59 AM Nice document...great work..thank you for sharing B fermer_members15e4 Active Contributor ° 12-10-2014 4:35 PM titpsileommunity sap convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 sia417126, 1:06 po. Collections Management -1- SAP Community 0 Kudos Nice work CA® Former ember ° 01-27-2015 10:25 AM 0 Kudos Thank you so much... former_member183378 Active Contributor Q 02-09-2015 9:50 AM 0 Kudos Hello Sanit, Good document. Thank you for sharing such a nice information. Awaiting for next doc. Regards, titpsileommunity sap convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 35186417126, 1:06 po. Collections Management -1- SAP Community Lakshmi S SD” sanilbhandari Product and Topic Expert °° 02-09-2015 10:53 AM 0 Kudos Thanks much Lakshmi 6D commer member ° 02-24-2015 4:36 AM 0 Kudos Good document. Thank You Very Much. SD” sanilbhandari Product and Topic Expert ° 02-24-2015 5:56 AM titpsileommunity sap.convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-1ba-p/13256178 6186417126, 1:06 po. Collections Management -1- SAP Community 0 Kudos Thanks so much Kanhu Regards Sanil former_member200703 Active Contributor °° 09-16-2015 9:10 AM 0 Kudos Hi Mr. Sanil Ihave followed your above steps .. awaiting your second document in the series. Thanks in advance Mahmoud El Nady emad_gamal Participant Q 06-18-2016 12:04 PM titpsileommunity sap convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 37186417126, 1:06 po. Collections Management -1- SAP Community 0 Kudos thanks a lot so much helpful Document , please continues how to operate the collection management in life cycle . Thanks In advanced A® Former wemver Qo 10-31-2016 2:47 PM 0 Kudos this is a really helpful document as | am just starting to look at configuration of the diary and worklists having moved to SAP recently. Am | able to configure collections to be by client and by profit centre? I would like to be able to split a client between two or more collectors and wondered if the collections module worklists could be configured by profit centre so certain profit centres went to one collector and others went to another collector but for the same client? Thanks in advance for your guidance SD” sanilbhandari Product and Topic Expert © 11-02-2016 12:21 AM 0 Kudos titpsileommunity sap.convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-1ba-p/13256178 8186417126, 1:06 po. Collections Management -1- SAP Community Hi I believe this can be done, but is complicated. The prerequisite is that your AR Item which is transferred should have the profit center-The implementation of BAD! FDM_COLL_SEND_ITEMS can probably help on the same. Now profit center should be included in implementation of BAD! UDM_WL_ITEM_CREATE_C. While I have given you a technical solution, but why do you want to have worklist created at the level of profit center since this will confuse your customer and agent both. It will mean that more than one agent will be chasing the customer. This does not sound a very strong and good practice and is probably a precise reason why collection worklist are define at the level of company code or legal entity at the lowest level. Also your BP will be appearing at multiple places, creating reconciliation issues for your collection team as well Regards Sanil Bhandari 6D Former member °Q 11-02-2016 12:49 PM 0 Kudos Thanks Sanil, Iwas asking because many of our clients have multiple line items and we prefer to split by profit centre. | will change my thinking if this will cause issues on collections Another question if | may, when updating on a promise to pay, can you apply that promise against multiple items? Regards, Liz titpsvleommunity sap convtSlenterprse-resource-planning-biogs-by-membersicollctons-management-1ba-p/13256178 39186‘17126, 1:06 po. Collections Management -1- SAP Community 7 sanilbhandari Product and Topic Expert ° 11-02-2016 4:07 PM 0 Kudos Hi Yes, you can assign multiple items to one promise to pay. Below link should answer your question https:/hel 5106/content.htm Regards Sanil Bhandari former_member355038 Participant Q 01-26-2017 7:51 AM 0 Kudos Hi Sanil thanks for sharing a really useful document, Do you know how to link a automated dialling out system to call customers on the work list? titpsileommunity sap convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 4016417126, 1:06 po. Collections Management -1- SAP Community Itty SY sanilbhandari Product and Topic Expert 2° 01-27-2017 1:52 AM 0 Kudos Thanks a lot. No i am not aware of the functionality you mentioned. Regards Sanil 6D corer member °° 07-25-2017 11:12 AM 0 Kudos Hello, It's a nice document. Could you please provide me the link of second document. Thanks and Regards, titpsileommunity sap convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 448417126, 1:06 po. Collections Management -1- SAP Community Aritra Ghosh B fermer_membera14i50 Member 2° 08-22-2018 6:58 PM 0 Kudos Hi Sanil, Is it possible to exclude debtors from the worklist who only have open items with an actual dispute or open dunning block? I don't see any (basic) collection rules to configure this in the collection strategy. Kind regards, Arjan Desjardiin fF feousin Explorer ° 06-28-2019 7:25 PM 0 Kudos Thank you for the great reference document. Did you have the chance to post the documentation related to the integration points titpsileommunity sap convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 4248417126, 1:06 po. Collections Management -1- SAP Community between Collection Management, Dispute management and Accounts Receivable? Regards, Fred MalolanR Explorer ° 03-06-2020 9:31 AM 0 Kudos Integration between collection , dispute and Account receivable is at multiple levels. 1. Receivable items can tracked using collection rules ( set of multiple rules which combine into a collection strategy... These are then assigned to a customer ( BP) 2. Accounts receivable items are transferred to a worklist based on this criteria on a daily basis. This is the list of customers and receivables which collector needs to chase.. 3. Disputes are linked to an Accounts receivable item. Once you tag a dispute case to @ AR Line item, this remains in amount outstanding, but it goes out of collectors chase list... This remains in collector work list as a dispute .. Hope this helps former_member309149 Explorer titpsileommunity sap convtSlenterprse-resource-planning-biogs-by-membersicollectons-management-ba-p/13256178 as417126, 1:06 po. Collections Management -1- SAP Community 0 Kudos Hi Sahil, 03-17-2020 8:12 AM Thanks for the details documentation on Collection Management configuration, I have a question, is it possible for the one time customers to be included in Collection management? | tried running the Distribution of data to collection management for a one time customer but the system doesn't show any data that can be transferred. Thank you. former_member749694 Explorer ° 02-24-2023 5:56 PM 0 Kudos Hi sanil.bhandari Is there any 2nd part as well on Collection management Thanks. @ You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in. titpsvleommunity sap convtSlenterprse-resource-planning-biogs-by-membersicollctons-management-1ba-p/13256178 488‘7126, 1:06 po. Collections Management -1- SAP Community Comment Labels In This Area “mmo2" 1 A_PurchaseOrderitem additional fields 1 ABAP 3 abap cds 1 ABAP CDS Views 2. ABAP CDS Views - BW Extraction 1 ABAP CDS Views - CDC (Change Data Capture) 1 ABAP Development 1 ABAP Extensibility 11 ABAP Programming1 abapGit1 ACCOSTRATE 1 ACDOCP 1 Adding your country in SPRO - Project Administration 1 ‘Advance Return Management 1 Advanced Variant Configuration 1 Aland RPAjin SAP Upgrades 1 API and Integration 1 Approval Workflows 1 Ariba = ARM Artif intelligence (Al) ASN.1 ASSET MANAGEMENT 1 Assigned budget 1 Associations in CDS Views 1 auditlog1__ Authorization 1 ‘Auto PO fromGR1 Availability date 1. Azure Center for SAP Solutions 1 ‘AzureSentinel 2 Bank1 — BAPI_SALESORDER_CREATEFROMDAT21 Billing 1 BRF+1 BRFPLUS1 Budget for PRs1 Bundled Cloud Services 1 business participation 1 Business Processes CAPM1 Carbon 1 CDS Annotations 1 Cental Finance 1 CFIN1 —_CFIN Document Splitting 1 Cloud ALM1 Cloud Integration. 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Collections Management -1- SAP Community Follow f ¥v @ in Privacy Terms of Use -ntps:i/eommunty.sap.comSiontorpise-tesource-planning-blogs-by-memberscolacions-management-tfba-p/13256176