Implementing FSCM Collections

and Dispute Management

Ross Fisher & Maggie Okrzesik
Session Code: 2211

[ JUERGEN LINDNER
SAP POINT OF CONTACT
MEMBER SINCE: 1998

[ LINDA WILSON
ASUG INSTALLATION MEMBER
MEMBER SINCE: 1999

[ ATUL PATANKAR
ASUG INSTALLATION MEMBER
MEMBER SINCE: 2000

[ 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

Real Experience. Real Advantage.

Real Experience. Real Advantage.

Real Experience. Real Advantage.

Real Experience. Real Advantage.

Real Experience. Real Advantage.

[ 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

Real Experience. Real Advantage.

[ 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

Real Experience. Real Advantage.

[ 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

Real Experience. Real Advantage.

[ Cardinal Health Collections Org Structure

Collection Profile

Profile: CARDINAL

Company Codes

Collection Segment
Segment: CARDINAL

Company Code: 1130

Company Code: 1960

Segment: 2140
Company Code: 1970
Segment: 2250

Collection Specialists

Collection Groups

Collection Strategies

Processor:
BIENKAT9

HOSPITALS

Strategy: CAH0002

Processor:
ADKINSC9

CLINICS

Strategy: CAH0003

Processor:
WESTHOD

DOC OFFICE

Strategy: CAH0004

Processor:
GREWALN

LARGEACCTS

Strategy: CAH0005

Processor:
GARAPAL

RETAIL

Real Experience. Real Advantage.

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[ 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

Real Experience. Real Advantage.

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[ SAP Collections Worklist Account Detail

UDM_SUPERVISOR or UDM_SPECIALIST

Real Experience. Real Advantage.

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[ SAP Collections Worklist Invoice Detail

Drilling into an account provides invoice and payment details

Real Experience. Real Advantage.

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[ 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 Reached
result will determine
the Last Contact date

Contact Person details
populated from
Customer Master

Real Experience. Real Advantage.

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[ 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

Real Experience. Real Advantage.

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[ 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

Real Experience. Real Advantage.

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[ 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

Real Experience. Real Advantage.

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[ 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.

Real Experience. Real Advantage.

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[ 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

Real Experience. Real Advantage.

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[ 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

Real Experience. Real Advantage.

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[ Cardinal Health Dispute Case Creation

Majority of Cardinals Dispute Cases are created automatically

Real Experience. Real Advantage.

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[ 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

Real Experience. Real Advantage.

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[ 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

Quantity

Collector

2140

Quantity
Pricing
2140
1960

Tax
2250

Real Experience. Real Advantage.

Customer
Service
Center

Tax &
Audit
Team

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[ 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

Real Experience. Real Advantage.

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[ SAP Dispute Case Processing

A Debit Dispute Case

Real Experience. Real Advantage.

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[ SAP Dispute Case Workflow

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

MANAGER

SUPERVISOR

STAFF

Real Experience. Real Advantage.

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[ SAP Dispute Case Workflow

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

Real Experience. Real Advantage.

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[ 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

Real Experience. Real Advantage.

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Thank you for participating.

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

Real Experience. Real Advantage.

SESSION CODE: 2211

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