Advanced Collections Create and Execute Collections Strategies

Demo Script (Internal)

Table of Contents
Advanced Collections - Collections Manager [EDUF0308] ........................................................................1 Pre Demo Steps ..........................................................................................................................................................2 Begin Demo................................................................................................................................................................2 Review Scoring Engines.........................................................................................................................................2 Review SQL for Scoring Components ...................................................................................................................5 Review Strategies ...................................................................................................................................................6 Review Work Items ...............................................................................................................................................8 Review Dunning Plans .........................................................................................................................................10 Review Metrics ....................................................................................................................................................11 Review Ownership ...............................................................................................................................................12 View Discoverer Report........................................................................................................................................12 Flowchart..................................................................................................................................................................14

Advanced Collections - Create and Execute Collections Strategies

Document Control
Date 01-Aug-2005 27-Jul-2006 28-Feb-2007 15-Jun-2009 Owner Anne.Miller-Ramee Anne.Miller-Ramee Anne.Miller-Ramee Anne.Miller-Ramee App Release 11.5.10r2 11.510r3 12.0 12.1.1 Version v1.0 v1.0 v1.0 v1.0 Change Reference New document Minor navigation change R12 Update R12.1.1 Update

Objective
ENHANCED R12.1.1 The purpose of this document is to demonstrate how a Collections Manager sets up and uses Advanced Collections to automate collections activities and manage collector activities.

What's New?
Advanced Collections 12.1.1: Later Stage Delinquencies Ability to manage later stage delinquencies at the case, contract or transaction level. You can now assign later stage delinquent status of Litigation, Repossession and Write-off in Case or Contract tabs. (Existing functionality of assigning later stage delinquency at transaction level will continue to be available). Customer Level Bankruptcy The existing functionality of creating multiple bankruptcies at transaction level has been replaced with Customer Level Bankruptcy and you can now only assign bankruptcy at the Customer Level. Pending Dispute Cancellation from Dispute History Tab This is only available only for pending disputes in History Tab > Dispute History. You may enter a comment during cancellation which is also visible in iReceivables. Promise and Unpaid Reason code for Current invoices Entering a promise on a current invoice will set the Delinquency Status to Current for it. Print preview of External Template in Transactions tab
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Note: Vision is not delivered with any External Templates. Print BPA Invoices from Collections Template Query UI Builder in Collections Administration Responsibility Contact filtering by Account and Site Level in Collections.

Pitfalls
N/A

Assumptions
You have reviewed Collections - How to Set Up for Collections Demos and completed the appropriate setups.

Related Documents
Demo Script - Advanced Collections Collection Agent Flow Metalink - Using Collections Scoring and Strategies for Superior Collecting

Pre Demo Steps

1. See Demo Document Collections - How to Set Up for Collections Demos Important: Do not skip reviewing the above document. It contains important information about how Collections is configured, what concurrent requests must be run prior to and/or during your demo and crucial discovery questions that will help you determine how to structure and arrange the flow of your demo. If you will only be reviewing the setup pages and not transacting, you probably wont need to run anything from that document. 2. Check Strategies Review the work items in your strategies and modify as needed for your demo. See Review Strategies section below for navigation. If Pre Demo Steps complete, goto task #3. Otherwise, goto task #1.

Begin Demo

Review Scoring Engines

3. Login to Portal
Field Common Vision Operations France Netherlands Construction

Communic s

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Username / Password Responsibility

JJONES / welcome Collections Administrator

ALAIN/welcome Collections Administrator, Vision France

MARTIJN/we lcome Collections Administrator , Vision Netherlands Collections Administrator , Vision Construction

Collection Administra Vision Communic ns

4.

Review Scoring Engines (N) Setup Checklist > (I) View Existing for Create Scoring Engine Opens the Scoring Engine Search window
Field Common

Enabled (Dropdown)

Yes

(H) Customer Scoring Opens the Update Scoring Engine: General Information window Scoring forms the foundation of your collections activities. You can select any item to use in calculating your score Oracle Advanced Collections uses scoring in two ways: 1. To determine transaction status: current, delinquent, and pre-delinquent: When scoring transactions, Collections looks at transactions from Oracle Receivables, including invoices, debit memos, and chargebacks; lease invoices originating in Oracle Lease Management; or loans invoices originating in Oracle Loans. As a rule, if a customer has delinquent transactions, the customer is considered to be delinquent. 2. To determine the value for each customer: When scoring to assign customer value, you can use any data point contained in the customer database. Typically you run customer value scoring at an operational data level (customer, account, bill to, or delinquency). Once you know which transactions are delinquent and you know the relative value of a customer, you can manage delinquencies more effectively with either dunning plans or collections strategies. The scoring range indicates the highest and lowest expected scores. Scores can now extend beyond the old 1-100 limit. And a new Out of Range Rule determines what score value to use in its place if a score value falls outside the expected score range. Closest assigns the closest valid score number and Farthest assigns the farthest valid score number. Weighting is optional. Weighting is used if you want to indicate the relative importance of two or more scoring components in a scoring engine.

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We deliver pre-configured scoring engines with Advanced Collections but customers may create their own as well. Lets look at the scoring components that this Scoring Engine uses. 5. Review Scoring Components (B) Next Opens the Update Scoring Engine: Components window Scoring engines are comprised of one or more scoring components. We use the results of these scoring components to determine scores. When a concurrent program runs a scoring engine, the scoring component calculates a value for the item being scored. Eg, An answer to a business question, such as "How many delinquencies does this customer have?" or "How long have I been doing business with this customer?" Strategies and dunning plans then use the score to execute appropriate actions for delinquency or predelinquency situations. We deliver pre-configured scoring components with Advanced Collections but customers may create their own scoring components. Pre-configured scoring components look at: Delinquencies Amount for Customer Customer Since for Customer (length of business relationship with customer) Number of Delinquencies for Customer Creating new scoring components requires knowledge of PL/SQL statements or functions. This is normally done during the implementation phase by your DBA. Lets say we want to evaluate our customers and select the appropriate collections management method for each. In this simplified example, we want to use three factors to select the collections plan for a customer: how much they owe, how many transaction are overdue, and how long we have been doing business with the customer. To find out this information, we created a scoring engine with three scoring components to calculate the following information for each customer: 1. The total overdue amount 2. How long we have been doing business 3. The number of delinquencies Since Weighting is required in this Scoring Engine, we see the weight for each of these components. This tells me that the 2nd component (Customer Since for Customer) telling me how long Ive been doing business with this customer is the least important, while our 1st component is the most important.
Field Common

Select (Radio Button)

Number of Delinquencies for Customer

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Displays the Component Details for this Component For some components, a high number means you are dealing with a good customer, but in other instances, a low number is better. Eg: 1. The number of delinquencies low number is better 2. How long you have been doing business high number is better. 3. The total overdue amount low number is better
Field Common

Select (Radio Button)

Customer Since for Customer

Displays the Component Details for this Component 6. Review Scoring Engine Filters (B) Next Opens the Update Scoring Engine: Segments window Views/Filters create a subset of records to score against. Collections uses these filters to limit the scope of a scoring engine and improve system performance. For example, a collections organization could run scoring using a filter to segment customers by variables, such as category, country, annual revenue, or disputed transactions. Along with performance uses, scoring engines use the different filters to score groups of customers differently, and support operations in different regions around the world. For example, you can process Australian invoices when its nighttime in Australia and United States invoices when it is nighttime in the US. In addition, collections laws differ by country: eg, when and how often dunning letters and calls should be handled. Using country to group customers allows you to score them accordingly and create country-specific strategies. Another example would be treating customers who have been doing business with you for a long time more leniently than newer customers, who have no payment or credit history. Every scoring engine must have a View. You can use the pre-configured view or your database administrator can create a data view based on a SQL query. You would then associate the new view with a scoring engine. If you are in the midst of reviewing Dunning Plans, goto task #11. Otherwise, goto task #7.

Review SQL for Scoring Components

7. Review SQL for Scoring Components (B) Next Returns you to the Create Scoring Engine Search window
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(ST) Create Scoring Components

Field Common

Type (Dropdown) Preconfigured (Dropdown)

Customer Yes

(B) Go Displays the seeded components for Customer

(H) Delinquencies Amount for Customer Opens the Update Scoring Component window and displays the SQL statement for this component. The scoring component consists of a PL/SQL statement used to quantify existing database information about a customer, invoice, delinquency, or case. The Value Type indicates whether it is a PL/SQL Function or a Select Statement that returns one integer value.

(B) Cancel

Depending on your discovery, you may have selected to discuss either Strategies or Dunning Plans. Its also possible that the customer may not know which they want to use and youll be discussing both. If you are NOT reviewing Strategies, goto task #10. Otherwise, goto task #8.

Review Strategies
8. Review Strategy Overview: Strategies are more commonly used than Dunning Plans since they provide much more functionality and flexibility for collections management methods. Managers can define strategies to apply to different collections situations and categories of customers. Scoring engines and the scoring components they contain quantify customer characteristics as scores. For example, a scoring engine can check for overdue invoices. Invoices 60 - 70 days overdue would receive a score of 40. The strategy concurrent program then looks at that score and assigns a specific strategy. The first work item in that strategy is then kicked off by the workflow. Collections managers create strategy templates, which are pre-defined sets of steps for the recovery of delinquent objects such as invoices from Receivables, cases in Lease Management, or loan transactions from Loans. Strategy templates are reusable and leverage the Collections Scoring Engine. The Customers collections score is used to determine and assign the most appropriate strategy for that customer. Once the strategy has been assigned, any manual work items are automatically posted to the appropriate collectors work queue.
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Strategies use: Workflow to manage work items and send notifications to designated personnel; Human Resources to use skills necessary for specialized work items; XML Publisher to send correspondence; Database views to create filters or customer segments (groups of similar customers); Universal Work Queue to display the collector's work assignments. Strategy types (or categories) play a role in selecting which strategy to apply to a delinquency. Strategies can have the category of write-off, litigation, repossession, bankruptcy, or simply delinquency. Many strategies can be applied to the same delinquency depending upon the status of the delinquency. For example if an agent adds the status of litigation to a delinquency, then a litigation strategy is selected and executed. Note: You would use either strategies or dunning plans, but not both. (ST) Create Collections Strategies Opens the Strategy Search window
Field Common

Enabled (Dropdown)

Yes

(B) Go > (H) Hard Customer Collections Strategy or any strategy Opens the Update Strategy: General Information window This page shows the details of the strategy (e.g. whether its enabled, strategy level, checklist template associated to strategy). Pre-configured strategies may not be updated. To modify one of the seeded strategies you must first copy it and then make your changes and save it with a new name. During your implementation, you will determine how you collect from your customers. This means whether you manage collections on a Customer, Account, Bill-to, or individual Transaction level and which collectors to assign to those. Scoring, and strategy plans will operate and assign ownership of work at this level. Collections strategies use the following process: 1. Collections strategy templates are defined. Strategies can contain required and optional work items. Strategy templates and work items are reusable and can be applied multiple times. 2. Scoring engines are created and score ranges related to various strategies. 3. Concurrent programs are run according to an established schedule to process scores.
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4. Various strategies are then executed based on these scores and work items are initiated. 5. Workflow manages each work item. If the work item is automated (such as send a letter), the system performs the work automatically and creates a history record. If the work item is manual, it is posted to the Work Queue of the collector who owns the customer. Note that cases are scored if you are using Oracle Lease Management. 6. The strategy workflow engine keeps track of when a work item is completed and initiates the next item, using pre or post wait timing to manage the timing of each work item. 7. The system can automatically change an executed strategy if the score is outside of a score tolerance value. For example, a high scoring customer suddenly stops paying all bills. This could drastically increase their DSO and also change their collections score. Rather than continue to run a soft collections strategy, the collections system will automatically stop the active strategy and all incomplete or unexecuted work items. Then the system would start a new strategy that maps to the customers new, lower, score. Managers and agents can override the established collections work items by removing or adding work items to the strategy. (B) Next > (B) Next > (B) Next Opens the Update Strategy: Work Items window

Review Work Items

9. Review Work Items A series of work items make up a strategy, and can required or optional. You may also define the order in which the steps are to be taken by a collector to complete their work on a delinquency. You may add more work items depending on your needs. As of R12, any work items that have pre or post wait times attached may now be skipped. Both Strategy Templates and Work Item Templates may be re-used in other collection treatments. Once initiated in a strategy, work items are managed by workflow. (B) Cancel > (B) Yes > (ST) Create Work Items
Field Common

Category Type (Dropdown)

Phone Call

(B) Go Displays Phone Call work items

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(H) Hard Collections Call 1 Opens the Update Work Item: General Information window. Manual work items are assigned to resources (ie, employees) based on a combination of skills and territories. Checking the Notify field indicates you want an e-mail workflow notification of the work item sent to the employee assigned to the task.

(B) Next You may enter pre- and post-execution wait times. If you choose Yes in the Optional field, the work item will automatically close after the expiration of the option wait time. Yes in the Escalation field will send a notification to the manager when the Closure Time Limit is reached. If you want another notification sent to the next manager if the first manager doesnt acknowledge the notification, then you would use the Wait Time after which the notification is sent.

(B) Next You may also optionally choose a skill required for this task. Skills are set up in Human Resources.

(B) Next > (B) Finish

Field Common

Category Type (Dropdown)

Send Email

(B) Go Displays Send Email work items

(H) Moderate Dunning Letter 1 Opens the Update Work Item: General Information window. Automatic work items are carried out with workflows. All correspondence has a template associated to it. The latest mini-pack IEX.H now uses Oracle XML Publisher for this correspondence. Oracle One-to-One Fulfillment is still supported for those customers already using it. All other options are the same as the manual work item.

(B) Cancel > (B) Yes Custom workflow can also be assigned to work items. There are no custom workflows seeded in Vision.

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If you are reviewing Dunning Plans, goto task #10. Otherwise, goto task #13.

Review Dunning Plans

10. Dunning Plans As an alternative to strategies, you can use Collections Dunning Plans, which provide a simple method for managing collections. This includes automatically sending a dunning notice and tracking payments and, optionally, assigning dunning callbacks to collectors. Dunning plans are generally run to coincide with corporate billing cycles and, like strategies, can be run at the customer, account, bill to, or delinquency level. Dunning Plans use a combination of scoring and aging, send correspondence (eg, dunning letters) and optionally schedule callbacks. There are no other work items, filters, etc. associated with Dunning Plans. If your customer isnt sure which collections method they want to use, its suggested that they implement Strategies with only letters and callbacks. That way, if they decide to use more Strategies later on, they can add additional strategy and work item templates, filters, etc. If they start with Dunning Plans, they cant move to Strategies easily. (H) Return to Checklist Opens the Collections Checklist window (I) Edit Questionnaire for Operations Setup > (B) Next > (B) Next
Field Common

Method (Radio Button)

Dunning Plan

(B) Finish > (T) Collections Method Setup > (ST) Create Dunning Plans Opens the Dunning Plan window You can set up as many aging buckets and associated parameters as you need.

(G) Go > (H) ADS Dunning Plan Opens the Update Dunning Plan: General Information window You can create a separate dunning plan for each aging bucket you use. A dunning plan can have as many score range lines as you need, but must account for all scores from 1 to 100.

Goto task #5 11. Review Aging Bucket Lines

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Specify the dunning score ranges with associated dunning letter templates and with the send method (print, fax or e-mail) for each score range. The scoring (at whichever level you operate) determines which letter to send. You may also indicate optional Callbacks and Callback Days. When the Dunning Plan concurrent program is run, dunning letters are automatically sent to customers and Dunning history is recorded in Collections Correspondence History and All History. If no payment is made and you are using Dunning Callbacks, you would run the Dunning Callback concurrent program to create callbacks that are automatically posted to the Collectors Work Queue. If payment is still not made, you can re-run scoring and, at the next bill cycle, a new and more aggressive dunning letter is sent. You may make changes to a completed dunning plan at any time. (B) Finish

12. Reset Collections Method (T) Home Opens the Collections Checklist window (I) Edit Questionnaire for Operations Setup > (B) Next > (B) Next
Field Common

Method (Radio Button)

Strategies

(B) Finish

Review Metrics
13. Review Metrics (I) View Existing for Create Metric Opens the Metrics window
Field Common

Method (Radio Button)

Strategies

(B) Go
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Displays the Enabled seeded metrics for Type = Customer Metrics are key customer indicators used by your organization. They can be calculated at the customer, account, or bill to level. Metrics are visible on the Profile tab for collections agents. Although we provide many pre-configured metrics, you can define new metrics based on your corporate policies and formulas. Since metric formulas use SQL/Plus statements or function calls to calculate data, you will need a qualified DBA to do this. (H) Weighted Average Days Paid Opens the Update Metric: Weighted Average Days Paid window The ranges indicate whether the metric falls in a low, medium, or high range of all possible values. These will display adjacent to the metrics values you have selected to use in the Collections Form Profile tab. You can verify the accuracy of the metric value and ranges with test data before you use it with production data. Simply, select a party with a known metric value in the Identifier field and click Test. Note: Profile Option IEX: Metric Calculation Method determines whether the metrics are calculated each time you navigate to the Profile tab or in batch mode. If you set the profile option to batch mode, you must schedule the IEX: Refresh Metrics Summary Table concurrent program to run to refresh the data. Vision is delivered with Metrics calculating in Real Time.

Review Ownership
14. Review Ownership (H) Home > (N) Administration > Ownership Opens the Update Promises Ownership window You can temporarily change work assignments for your collectors. For example, if a collector is out sick, you can reassign some or all of the work items for that Collector to a different collector or to multiple collectors. You can reassign by Promise and/or Work Item to another collector. This type of work reassignment is effective only for the day the transfer is made. (H) Home

View Discoverer Report

15. Optional: View Discoverer Report

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Launch Discoverer Desktop from Direct Access

Field Open Workbook Workbook Name (I) Database > (B) Open Collections Promise to Pay ADS Summary > (B) Open > (B) Yes Value

Opens the Collections Promise to Pay - Summary report and displays a graph . Close Graph window You can see the summary report based on your selection of collector name above. (T) Details (bottom left next to Summary tab) > (B) Yes Opens the Collections Promise to Pay - Detail report and displays promises, current amount due on the promise and when the promise was broken. This report displays all promises in Vision. You may choose to limit the report by adding a date condition. (M) Tools > Conditions
Field View Conditions for: (Dropdown) Condition (Dropdown) Value(s) >= Users discretion > (B) OK Value Promised By > (B) New

(B) OK Exit report and close discoverer window without saving changes

End of activity.

Demo Support
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Flowchart

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