Improve Your Receivables Management with SAP Collections Management

  • by Juergen Weiss, SEPA-Now Consulting
  • November 15, 2007
Understand the concept of master data synchronization between your Accounts Receivable (AR) system and SAP Collections Management and learn how to replicate customers to business partners. Understand some of the key configurations of Collections Management and see how to transfer AR data to Collections Management to create work lists for collection specialists.
Key Concept

SAP Collections Management is an application that supports all phases of receivables management including the selection and prioritization of customers, the preparation of customer contacts, and the actual processing of outstanding receivables. The system provides collection specialists with an accurate daily work list of overdue customer accounts. Collections Management also offers employees a wide range of options for analyzing and handling these receivables.

Efficient receivables management is among the top priorities of many companies so they can reduce days sales outstanding (DSO). Employees who deal with receivables management face the challenge of processing an increasing receivables balance and look for ways to improve their operational procedures. Using SAP Collections Management, you can identify and prioritize overdue accounts in a proactive manner.

I’ll describe one of the most complicated issues during the setup of Collections Management: the synchronization of business partner master and transaction data between Accounts Receivable (AR) and Collections Management. This synchronization is mandatory because Collections Management makes use of business partner functionality, which is a generic component that several other applications use.

You need to convert customer master records into business partners and assign certain roles and profiles to these newly created business partners within Collections Management. I’ll also describe how you can transfer transactional data from AR to Collections Management, resulting in a work list of overdue accounts that collection specialists can use to process outstanding receivables. I’ll start by looking at some of the important business partner features and concepts.

Juergen Weiss

Juergen Weiss works in the functional area of SAP Financial Supply Chain Management. As part of SAP’s product management team, he was globally responsible for the Financial Supply Chain Management applications, including Electronic Bill Presentment and Payment, Dispute Management, Collections Management, Credit Management, Treasury and Risk Management, Bank Relationship Management, and In-House Cash as well as Accounts Payable and Receivable.

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