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FSCM
OVERVIEW

Johannes Le Roux
leroux@Jari-consulting.com
Tel: 585 317 9234

Financial Supply Chain Components
What is FSCM.?
Financial Supply Chain Management (FSCM) is an integrated
approach to provide better visibility and control over ALL cash-
related processes.

Integrating core processes in finance, operations, sales,
and logistics.
Support new processes, such as shared-services,
outsourced services and other unique business models
Enables people your most coveted asset to be
empowered to manage and create value for your
business

Introduction
FSCM Components..

Collections Management
Dispute Management
Credit Management
Biller Direct
In-House Cash
Treasury & Risk Management



Introduction
Collections Management
Worklist for collection agents
Criteria to select and prioritize customer accounts
Direct access to customer account from worklist
Process and view open receivables
All open invoices and their status at a glance
Invoice history
Actions for one or several invoices can be directly taken
Tight integration with SAP Accounts Receivable
Collection procedure
Promise to pay agreements
Automatic integration with payments and clearing postings
Integrated with SAP Dispute Management
Create and view dispute cases from SAP Collections Management


Introduction
Dispute Management
Cross-department dispute resolution
All information is centrally stored and structured (electronic record)
Integration with SAP Workflow incl. e-mail notification of
processors
Integration in financial but also in logistical processes
Creation and viewing of dispute cases from financial transactions
Automatic update of dispute cases by financial transactions
Links to financial and billing documents (SD and CRM)
Correspondence capabilities
Customer correspondence (automatic and manual)
Internal escalation of critical dispute cases
Support of different communication channels
SAP Biller Direct
SAP Collections Management
Analysis of dispute resolution

Introduction
Credit Management
Credit Limit Management
Implement a company wide credit policy
Manage a customer credit profile
Central credit management in a distributed system landscape
Credit Case
Credit case for structured processing of credit limit applications
Track status and result of credit limit applications
Credit Rules Engine
Categorize customers by scoring rules
Automatically calculate and assign a customer-specific credit limit
Credit check rules
Credit Information
Interface to external credit agencies
Input parameters for scoring rules
BW Content
Credit Manager Portal
Role-based access to credit management information and analysis
Introduction
Biller Direct
Customer can display the own accounts
Invoices, payment history and account balances
Suppliers can see all of their invoices including their status (e.g. if they are
paid or not)
They can also view additional payment information (e.g.check number)
Customers can see all of their bills and credit notes using the Internet.
Integration with SAP Dispute Management and SAP Cash Management
Customers can create dispute cases for both partial payments or the entire
invoice
Customers can select a reason for dispute
Customers can create initial note for the dispute
Customers can select a contact person out of the customer contact list
Correspondence
They can display documents as PDF or XML
They can download data as PDF or CSV

Introduction
IN-HOUSE CASH
Management of internal bank accounts for all subsidiaries
Support of various corporate group structures
Routing of payment orders to local subsidiaries to replace cross-border
payments
Internal bank accounts in any currency
Flexible condition and limit concept
Control of payment transactions on a regional and global level
Netting of internal payments
Central processes for external payments
Use of standard programs for payment orders and bank statements
Full integration with SAP Cash Management and SAP Treasury and
Risk Management
Introduction
Cash & Liquidity Management
Real-time integration of SAP Cash Management with operative systems
Electronic banking (various formats)
Automatic processing & reconciliation of bank statements (prior-, intraday,
lockbox)
Electronic Payments (payment program, online payments, repetitives) Cash
concentration
Flexible view on cash position and liquidity forecast
Selection options such as company code(s), business areas, original currency
Display options such as display currency, delta or cumulative display, currency
view per day, flexible time intervals
Easy creation of memo records and payment advices
Direct drilldown to detail information
Monitoring functions
Centralized system for medium- and long-term liquidity planning
Flexible setup of liquidity planning procedure in the group
Automatic assignment of liquidity items to actual payments
Actual-plan comparisons
Introduction
Treasury & Risk Management
SAP Treasury & Risk Management offers a straight through processing
One data capture and the data is available for front office, back office, cash management
and accounting instantly
Accounting in parallel according to several accounting principles for example IAS and
HGB
SAP Treasury & Risk Management helps you to identify the financial risks
Changes in currency rates
Yield curve changes
Value at Risk calculations
SAP Treasury & Risk Management calculates the financial credit exposure
Using formulas to calculate financial credit exposure
Manage the exposure with a flexible limit management
SAP Treasury & Risk Management provides you with integrated reporting
Central reporting point for all your financial transactions and positions
Purchase
Order
Placed
Receipt
/Invoice
Actual
payment
Introduction
TIME
Days In Inventory Days Sales Outstanding
Days In Payables
Expected
Payment date
Days In Receivables
Cash flow Cycle
Sales
Order
Placed
Sales/
delivery/
Invoice
Actual
payment
Check
Credit
Issue
Invoice
Cash
Forecast
Financial
working
Capital
Dispute
Resolution
Collect
Cash
Settle &
Pay
Reconcile
Credit
Management
Dispute
Management
Collections
Management
Integrated Financial Approach
Cash & Liquidity
Management
Treasury & Risk
Management
In - House
Management
Financial Supply Chain Management
Biller Direct
Electronic invoicing
Integrate customer
service with finance
Customers see all bills and
credit notes on Internet .
Customers Access & create
dispute cases for both partial
payments or the entire invoice
Electronic Customer
payment
Suppliers can see all of their
invoices and status
Financial Supply Chain Components
Access Work
list
Automatically created
Personalization
Search function
Statistics
Prepare
Customer
Contacts
Key figures per work list item
Valuation detail
Due date grid
Invoice overview
Overview of past payments
Overview of past contacts
Overview of resubmissions
Contact
Customer
Promises to pay
Dispute cases
Resubmissions
Customer contact
Collection - Receivables Process

Establish a customer
centric receivables
management

Evaluate, identify and
prioritize accounts

Collect receivables
proactively

Process optimization
for high volumes of
open items
Collections Management

Prerequisite for creating a work list.
Transfer data from Accounts Receivable to Collections Management.
Initial data transfer
Transfers data of all company codes that participate in Collections Management (full
update).
Periodic data transfer
Only new data and changed data is transferred (delta transfer).
Data transfer according to selection
This type of data transfer is used in exception situations to rebuild selected customers in
Collections Management.


Open Items
Last Payment
Customer Key Figures
Accounts Receivables
Report Send FI-
AR relevant data
to Collection
Management
Collections
Management


Business
Partner Key
Mapping

Collections Management

Collection
Segment
Company
Code
Collection
Profile
Collection
Group
Collection
Specialist
Collection
Strategy
Elements of the Organizational Structure
Prerequisite for creating a work list.

Collection segments group company
codes of a company from the view of
SAP Collections Management.

Collection strategies used prioritize
business partners on the work list and
Summarized information per customer

Collection group consists of collection
specialists (Groups can be region or
customer type driven)

Collection Specialist is assigned to a
group and navigates from the selected
work list item to ECC function Process
Receivables

Collections Management

Customer
Customer
Profile
Collection
Group
Collection
Specialist
Customer in
Segment
Collection
Segment
User Assignment
System Assigned
Configuration
Prerequisite for creating a work list.
Collections Management

Creating a work list.
Work list can be create as a daily batch Job
Each collection specialists gets a daily work list
Customers are valuated and prioritized according to collection rules in a
Collection strategy.
Collections Management

Link to Business
Partner
Aging of receivables
Collections Management

Creating a work list.
Work list
Collections Management

View dispute case(s)
per selected invoice
View promises to pay
per selected invoice
View invoice history
of selected invoice
Collections Management

Collections Management

Collections Management

Collections Management

Summary.......

Increase collection specialist efficiency and decrease
cost of customer centric receivables management
Automatic work lists containing prioritized customers
Summarize all relevant information and necessary
activities for collection of receivables in one application
Summarize all history and relationship management
Better Synchronizing and predictability of cash flow

Collections Management

Dispute Management

SAP Dispute Management provides functions for processing
receivables-related dispute cases

Cross-department dispute resolution
All information is centrally stored and structured (electronic record)
Integration with SAP Workflow incl. e-mail notification of processors
Integration in financial but also in logistical processes
Creation and viewing of dispute cases from financial transactions
Automatic update of dispute cases by financial transactions
Links to financial and billing documents (SD and CRM)
Correspondence capabilities
Customer correspondence
Internal escalation of critical dispute cases
Support of different communication channels
SAP Biller Direct
SAP Collections Management
SAP Dispute Management is integrated in those financial processes of SAP
Financials Accounts Receivable where disputed invoices typically become
visible:
FBL5N




Create Dispute Case
Dispute Management

Access Work list
Disputes can be created from the
work list by selecting line item.
Dispute Management

Create Dispute Case Display Dispute Case
Dispute Management

Dispute Work list
Dispute Management

Dispute Management

Reason & Status
Amount
Fields
Customer
Contact
Information
LOGS
Roles
Correspondence.
Automatically by events like
Create dispute cases
Close dispute cases
Events that can be defined on project level
Manually by the user when processing the dispute case
SAP delivers standard customer correspondence for
Fax, e-Mail, and letter
Notification that a dispute case has been created
Notification that dispute case has been closed
Query regarding dispute case
Information about dispute case
Customers can create their own correspondence
Use Smart forms
Data available for correspondence
All attributes
External notes
Object keys of objects stored in the dispute case folders (case record)
Dispute Management

Correspondence.

Dispute Management

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Efficient & Pro-active receivable management
Prioritizing and performing customer collection for
collections
Efficient Processing of receivables-related customer
disputes
Automatic generation of customer statements periodically
Efficient communication and documentation of Payment
and disputed
Control your customers credit exposure
Reduce amount of bad or doubtful debt
Collect receivables proactively
Dispute Management

Summary.

Create dispute cases in Dispute Case Organizer or Financial
accounting (FBL5N report)
Create dispute case in Organizer due to a customer contact
Flexible search of dispute cases based on attributes
Automatic write-off an closing of dispute cases
Create dispute cases directly from Collections Management
View status of dispute cases from Collections Management
Improve cash collection by speeding up dispute resolution
and better overview of customer account
Seamless integration of the processes dispute resolution and
cash collection
Dispute Management