collection document for cardinal health

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


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


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


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


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


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


SAP Collections Worklist Account Detail

UDM_SUPERVISOR or UDM_SPECIALIST


SAP Collections Worklist Invoice Detail

Drilling into an account provides invoice and payment details


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


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


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


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


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.


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


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


Cardinal Health Dispute Case Creation

Majority of Cardinals Dispute Cases are created automatically


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


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


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


SAP Dispute Case Processing

A Debit Dispute Case



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



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


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


[

] Thank you for participating.SESSION CODE: 2211

Please remember to complete and return your

evaluation form following this session.

For ongoing education on this area of focus, visit the Year-Round

Community page at www.asug.com/yrc

collection document for cardinal health

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