3 50 Tips in 50 Minutes To Get Credit and Cash Flowing Faster

Tips and Tricks for Optimizing Credit and Cash
Management in SAP
Pankaj Jagtap, Director of Consulting
HighRadius Corproation
Copyright 2013 HighRadius. All Rights Reserved
Modernize Credit-to-Cash Cycle
In This Session
Get specific SAP tricks and tips on how to:
Better manage disputes
Better manage collections
Better manage A/R documents
Better manage credit
Better manage payment processing
What Well Cover
Overview
SAP Dispute Management Tips
SAP Collections Management Tips
SAP Credit Management Tips
SAP Biller Direct Tips
Wrap-up
Receivables Management in ERP Financials
Receivables Management was once called Financial

Supply Chain Management (FSCM) and was introduced in
2002.
There
areReserved
over 1,000 licenses worldwide!
Copyright 2013
HighRadius.
All Rights
Return on Investment (ROI) Opportunities
30% increase in staff efficiency

Eliminate time spent to identify delinquent customers via Collection
Strategies
Reduce the time spent on phone via Collection Dashboard and Standardized
Correspondence, such as providing invoice copies, collection letters, etc.
Automate Credit Decisioning within SAP
Customer self-service via Biller Direct Portal
10% reduction in DSO
Faster turn-around on collection and deduction activities
Intelligent collections via targeted identification of delinquent customers
via Collection Score
Ability to touch all delinquent customers via automation
Reduce float by migrating a subset of lockbox customers to online electronic
Bill Pay Model
Other
Reduce bad debit write-offs
Reduce lockbox processing costs
Copyright
HighRadius.
All billing
Rights Reserved
2013
Reduce
paper
costs via electronic invoice presentment
What Well Cover
Overview
Wrap-up
Dispute Case from FBL5N

Problem
Statement
It takes multiple steps and screens to open a dispute case

linked to receivables from FBL5N
Tip/Benefit
Step shown in the next slide opens the dispute case in a

single click
Dispute Case from FBL5N (cont.)

Single click here opens the
dispute case directly, as
shown in the inset
Attaching Documents to Dispute Case

Problem
Statement
It can be difficult to add an attachment to a dispute case

by going to the linked objects
Tip/Benefit
Step shown in the next slide enables you to store the

documents quickly, leading to efficiency of operation
Attaching Documents to Dispute Case (cont.)

Single click here will let you
select a document from your
local storage, which can be
retrieved from the Attachment list
Dispute Case Log

Problem
Statement
Users cannot get a view of any changes made by them or

others to the dispute case
Tip/Benefit
Dispute management has a readily available log of all

changes made to a case with date and time of change; this
can be very useful for audit purposes
Prerequisite: The attributes need to be selected in the
attribute profile during configuration
Dispute Case Log (cont.)

Clicking on the Log button provides all the changes
made to the case, along with the user accessing
the case with date and time details. It also provides
the old and new values of the attributes changed.
Dispute Case Status Can Be Confirmed

Instead of Closed
Dispute Cases Status can be Confirmed instead of Closed.
Once Confirmed, a Dispute case can no longer be
reopened. This is particularly helpful if dispute cases need
to be archived once complete.
Dispute Case Status Can Be Confirmed

Instead of Closed (cont.)
Automatically Create Dispute Cases for

Credits
Information
It is possible to automatically create dispute cases for

open credits
Prerequisite
This functionality is available in EHP 4 or later
Automatically Create Dispute Cases for

Credits (cont.)
You can auto-create dispute cases for

credits by choosing credit indicator in
transaction FDM_AUTO_CREATE
Business Partner Is Not Needed for

Dispute Management
There is a general notion that a business partner is
required for using dispute management, but dispute
management works directly on the customer master data
Business Partner Is Not Needed for

Dispute Management (cont.)
Ability to Attach Any SAP Document in

Linked Object of a Case
Problem
Statement
Standard SAP provides for linking of FI-AR documents to a

dispute case, whereas various other documents are
required for resolution of a case
Tip/Benefit
Configuration can be changed to update the Case Record

Model to add any SAP document as a category
Ability to Attach Any SAP Document in

Linked Object of a Case (cont.)
Add Credit Memo Request to a

Dispute Case as a linked object
Email Notification to Occasional Users

Problem
Statement
Many times, the case needs to be worked on by users

outside the deductions team, but they need to be
manually notified
Tip/Benefit
Standard workflow provides for automatic notification in

workflow, which can be sent to the users email, as well,
when they are assigned as the processor of the case
Prerequisite: Need to activate the WS 01700044 and
maintain the users who regularly process the case in a
separate configuration, so that they do not start getting
the notifications
Email Notification to Occasional Users (cont.)
Change the Processor and

the new processor will get
the email notification
Processing Buffer Between FI-AR and

FSCM
Problem
Statement
Updates on the FI-AR are not reflecting on the dispute

case
Tip/Benefit
FDM_PROCESS_BUFFER program needs to be scheduled as

a batch job every 15 minutes to clear any buffer between
FI-AR and FSCM, so that the data is in sync
Processing Buffer Between FI-AR and

FSCM (cont.)
Executing the program will clear
any buffer between ECC and FSCM
for data synchronization
SMARTFORM Simplified
Tip
Use of accelerator can simplify creation of different

correspondence forms without any development,
providing immense flexibility to business users
SMARTFORM Simplified (cont.)

Generation of forms from
UDM_DISPUTE requires
development of separate
form for every letter
SMARTFORM by Accelerator
Accelerator provides the
framework to create variations of
correspondence forms without
development
What Well Cover
Overview
Wrap-up
Collection on Business Partner Not in

Work List
Problem
Statement
Sometimes a user needs to work on a customer for

collection when they are not in their work list. This may
happen when the customer has not broken any collections
rule, but there has been contact with them and the user
needs to update the contact details or if a promise to pay
needs to entered.
Tip/Benefit
A collections specialist can work on any business partner

when needed. This is used at times when the actual
specialist for the customer is on a break and a customer
has called for the invoices.
Collection on Business Partner Not in

Work List (cont.)
Quick access to another
business partner or
someone elses work list
Open Customer from Collections and

Not Business Partner
Tip
User can open customer master data from the

collection management Process Receivable screen
Open Customer from Collections and

Not Business Partner (cont.)
Though collections management works
with the business partner, you can view
the customer master directly by double
clicking on the Customer in the Process
Receivables screen. This does not display
the business partner details.
Resubmission and Notes at Invoice

Level in Enhancement Pack 5
Problem
Statement
Notes and resubmissions have to be maintained, in

general, for the business partner, even though they
pertain to a specific invoice
Tip/Benefit
Now, with Enhancement Pack 5.0, you can make notes or

resubmissions at an individual or selected invoice on the
Process Receivables screen
Resubmission and Notes at Invoice

Level in Enhancement Pack 5 (cont.)
Select the required invoices, and then
make a resubmission or notes for them
specifically
Strategy Simulation
Problem
Statement
Managers need to wait for the work list generation to

confirm the outcome of any change to the strategy. This
can make it difficult to optimize the collections strategy.
Tip/Benefit
Using the steps shown on the next slide, the effects of the
strategy on a business partner can be immediately
simulated. Hence, it becomes easier for the managers to
tweak the strategy to the organizational needs.
Strategy Simulation (cont.)

Simulation helps in tweaking
the strategy without
generation of regular work list
Strategy Valuation
Problem
Statement
All items in the work list appear with very high priority.
This may make it difficult to focus a specialists work, as all
customers need to be worked on as a priority.
Tip/Benefit
Strategy valuation points need to be assigned in such a

way as to create a work list with a good mix of all
priorities, which is automatically assigned based on
valuation points. The next slide shows a work list with a
mix of all priorities.
Strategy Valuation (cont.)
Process Receivables Screen Has RealTime Data but Not the Work List
Information
All data seen on the work list is generated based on the

UDM_GENWL transaction when it was run; but once the
user goes to the Process Receivables screen, the data
pertaining to the invoice is real-time from FI-AR
Process Receivables Screen Has RealTime Data but Not the Work List
(cont.)
Data at Work List Generation
REAL-TIME DATA
Additional Attributes on Process

Receivables Screen in Enhancement
Problem
Adding regularly used fields from AR document requires
Pack
5
Statement
custom logic to be built
Tip/Benefit
It is now easier to update the include for any field on a

BSID table without coding the logic for retrieving data. This
reduces development efforts immensely.
Additional Attributes on Process

Receivables Screen in Enhancement
Pack 5 (cont.)
Fields from SAP AR can be easily added

without much development effort
Returning from a Customers Process

Receivables Without Adding a Note
Problem
Statement
If a user enters a customer by mistake, they need to add a

note before coming back to the work list
Tip/Benefit
The next slide shows a way of coming out of the

customers process receivable without entering a note
Returning from a Customers Process

Receivables Without Adding a Note (cont.)
Use Continue without customer contact
icon to come out of process receivables if
there is no activity on the account
User-Specific Layout for Collection

Specialist
Problem
Statement
Collection Specialists require their own work list layout,

as the default layout may not be suitable. However, when
they change the default layout, the changes become
applicable to everyone.
Tip/Benefit
Using the steps shown on the next slide, a Collection

Specialist can change the work list layout, but save it as a
user-specific layout
User Specific Layout for Collection

Specialist (cont.)
While saving a layout for your use

only, choose the option User-specific
while saving the layout
Update of Contact Person Is Not a

Master Data Change
Problem
Statement
Users have to request a master data change to update

the contact person for a customer
Tip/Benefit
The contact person update is not a master data change,

but it adds to the customer master
Update of Contact Person Is Not a

Master Data Change (cont.)
The contact person update is not a

master data change, but it adds to the
customer master
What Well Cover
Overview
Wrap-up
Manage Credit Limit at Multiple

Customer Hierarchy Levels
Problem
Statement
Managing credit for individual customers
Tip/Benefit
You can create a customer hierarchy and manage

credit at multiple hierarchy levels
Manage Credit Limit at Multiple Customer

Hierarchy Levels (cont.)
You can create a customer hierarchy

and manage credit at multiple
hierarchy levels
Display Business Partner for Collections

or Credit
Problem
Statement
Users need to go to business partner and then select

the required profile to look at relevant data
Tip/Benefit
UDM_BP can be used to look at collections data

directly and UKM_BP can be use to view the Credit
Management data
Display Business Partner for

Collections
or Credit (cont.)
This directly displays the Collections

Role details of business partner
Display Business Partner for Collections

or Credit (cont.)
This directly displays the Credit Role

details of business partner
Simulate a Credit Check

Trick
Credit Managers have the ability to simulate the credit

check of a customer without any actual sales entry
Simulate a Credit Check (cont.)
Click on the Simulate icon

to Simulate a Credit Check
Credit Score Trace

Information
Turning on Logging for scoring customers will provide

details of how a customer received a particular score. It
will also give the ability for the user to compare the
parameters.
Credit Score Trace (cont.)

Select this check box to
start Credit Score
Tracing
Details of Credit Score Valuation

Trick
Credit Managers have the ability to view details of

valuation for providing the credit score to a business
partner
Details of Credit Score Valuation

(cont.)
Click on the Information on
Formula icon to see more
details
What Well Cover
Overview
Wrap-up
SAP Biller Direct Supports Both Partial

and Residual Payments
Information
SAP Biller Direct allows both residual or partial

payment.
Proportional Discount allowed for partial payments.
Partial payments can be restricted as user/customer
level/at application level.

and Residual Payments (cont.)
Select an invoice and enter

the amount you want to pay

and Residual Payments (cont.)
Check this box if

you want to make a
partial payment
instead of a residual
Customer Can Communicate with AR

Analysts Using Dispute Case Notes
Information
Customer can communicate with AR analysts using dispute

case notes. Certain specified note types can be made
available to the customer in SAP Biller Direct. All customerentered notes in SAP Biller Direct can be seen in dispute
management.
Customer Can Communicate with AR

Analysts Using Dispute Case Notes
(cont.)
Biller Direct Notes
Dispute Case Notes

SAP Biller Direct Users Can Self-Edit

Notification Settings
Information
SAP Biller Direct users can self-edit notification settings

for Bills and Credits
SAP Biller Direct Users Can Self-Edit

Notification Settings (cont.)
SAP Biller Direct Users Can Create a

Payment Advice
Problem
Statement
AR analysts might spend a lot of time in matching an

existing credit to an open deduction
Tip/Benefit
Using the steps shown on the next slide, an SAP Biller

Direct user can also help in matching a credit to a debit
and create a payment advice, which can then be
processed by an accounting clerk
SAP Biller Direct Users Can Create a

Payment Advice (cont.)
We can select the required debits and

credits and then create a payment advice
which can be processed in ECC by an AR
analyst
SAP Biller Direct Supports Head Office

Branch Functionality
Information
SAP Biller Direct users support customers maintained

under the Head Office branch relationship. Users
assigned to a Head Office Customer can view transaction
details of all branch customers assigned to the Head
Office.
SAP Biller Direct Supports Head Office

Branch Functionality (cont.)
Set Up Minimum Payment Amount for

Customers Paying from SAP Biller
Direct
Information
You can set up a Minimum Payment amount for a

customer paying through SAP Biller Direct. You can specify
an amount or a percentage of the invoice or both. When
you enable both, the upper limit applies.

Direct (cont.)

Direct (cont.)
Enter the minimum

payment amount as a
figure and/or as a
percentage of the
Copyright
2013 HighRadius. All Rights Reserved
invoice
amount
Partially Utilize a Credit While Making

a Payment in Biller Direct
Information
You can partially utilize a credit instead of using the

entire credit while making a payment

a Payment in Biller Direct (cont.)
Select the Credit and enter the

amount you want to utilize

a Payment in Biller Direct (cont.)
Select the checkbox to

allow partial utilization of
credit
What Well Cover
Overview
Wrap-up
Where to Find More Information

www.highradius.com/resources/videos
Training videos and case studies on SAP Receivables Management
http://service.sap.com/fscm
SAP components and functionalities
Requires login credentials to the SAP Service Marketplace
http://info.highradius.com/blog
SAP Receivables Management best practices posts
http://info.highradius.com/paystream-rcm-report/
Analyst report including HighRadius and SAP profiles
7 Key Points to Take Home

Measure KPIs for continuous improvements
Change management is key to success in receivables
management
Periodically review and update collection strategies
Periodically review the Credit Scoring Model and assess
Use SAP Dispute Management workflow for collaboration
Encourage continuous training and knowledge sharing for the
end users
Participate in conferences or user groups for latest trends
Your Turn!
How to contact me:

Pankaj Jagtap
pankaj.jagtap@highradius.com

3 50 Tips in 50 Minutes To Get Credit and Cash Flowing Faster

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Tips and Tricks for Optimizing Credit and Cash

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

What Well Cover

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Receivables Management in ERP Financials

Receivables Management was once called Financial

Return on Investment (ROI) Opportunities

30% increase in staff efficiency

What Well Cover

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Dispute Case from FBL5N

It takes multiple steps and screens to open a dispute case

Step shown in the next slide opens the dispute case in a

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Dispute Case from FBL5N (cont.)

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Attaching Documents to Dispute Case

It can be difficult to add an attachment to a dispute case

Step shown in the next slide enables you to store the

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Attaching Documents to Dispute Case (cont.)

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Dispute Case Log

Users cannot get a view of any changes made by them or

Dispute management has a readily available log of all

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Dispute Case Log (cont.)

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Dispute Case Status Can Be Confirmed

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Dispute Case Status Can Be Confirmed

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Automatically Create Dispute Cases for

It is possible to automatically create dispute cases for

This functionality is available in EHP 4 or later

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Automatically Create Dispute Cases for

You can auto-create dispute cases for

Modernize Credit-to-Cash Cycle

Business Partner Is Not Needed for

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Business Partner Is Not Needed for

Copyright 2013 HighRadius. All Rights Reserved

Modernize Credit-to-Cash Cycle

Ability to Attach Any SAP Document in

Standard SAP provides for linking of FI-AR documents to a

Configuration can be changed to update the Case Record

Copyright 2013 HighRadius. All Rights Reserved