SAP S/4 Hana Collection Management

SAP Collection Management is a tool that assists organizations in tracking and managing their accounts receivables.

The Collections Management process in an organization is apparent when there are aging receivables on their books. Companies that are looking to improve their Days Sales Outstanding, improving cash flow and working capital need to look at their aging receivables and evaluate the importance of defining collections process 

• Identification of overdue accounts and critical trends

• It Prioritize collections activities based on strategies.

• Generate, monitor, and balance work lists.

• Leverage complete integration (credit, disputes, billing, analysis)

• Extend the collections process beyond the finance team.

• Proactive customer-centric collections

• Reduced days sales outstanding

• Improved collections efficiency

• Minimized bad debt write-offs

• Improved collaboration with sales

• The worklist serves as the initial access point or “cockpit” for the process of collecting receivables.

• The worklist is automatically prioritized from valuation points assigned to customers based on their current account status.

• Collection strategies drive the priority of each customer account needing attention

• This allows the collection specialists to immediately address troubled accounts

Collection Specialists drill down to analyze and “work” the account. The Process Receivables screen is broken down into several tabs featuring current status of customer’s account

Invoices: Review current balance and open Accounts Receivable line items. Create Promise-to-Pay agreements for past due items

Payments: Displays recent payments made by the customer

Promise-to-Pay: SAP “tickler” process capturing customer’s agreement to pay a current or past-due invoice

Dispute Cases: SAP record containing attributes for a short-paid invoice or customer-disputed receivables item Customer Contacts: Notated action items taken during last contact with the customer

Resubmissions: Reminders set to contact customer later. Resubmissions can be set to exclude customers from the collection worklist for a set period.

Customer Notes: Collection Specialists can create notes with or without attachments based on conversation with the customer while collecting for future reference.