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The Legal Dunning and External Collections ES bundle closes the gap of interaction between the collection part done inside SAP and the final collections done via 3rd party applications or external collection agencies. The needs for a transparent end-to-end process regarding collections across solutions and/or organizations are covered.

If a customer does not pay his receivables and all measures have been taken to collect the receivables, many companies use external collection agencies or third party applications for managing receivables involved in a legal dunning procedure to prevent loosing the receivable.

The final collection of difficult recoverable outstanding debts is often done either via 3rd party application for the purpose of legal dunning or via external collection agency for any type of collection mode including legal dunning). For the transparency in this end-to-end process a back and forward communication between the SAP solution and external applications is obligatory.The bundle is based on SAP's Contract Accounts Receivable and Payable (FI-CA).

Audience

The Legal Dunning and External Collections ES bundle is of value for companies who have a high frequency of final collection activities - e.g. Utilities, Communications companies. Triggering the final collection step and communication between SAP and external applications is eased especially for Collection Agents. The bundle completes the collection process.

Environment for Legal Dunning (click to enlarge)


Cost and manpower savings are achieved due to improved efficiency in the whole collection process such as:

  • Reducing collections time and day sales outstanding
  • Reducing customers development
  • Maintenance -> reduces TCO
  • Avoid/Reduce unsuccessful legal dunning by checking probability of collection success before final collection

In addition efficiency is increased through improvements like:

  • End-to-end process of collections is now covered
  • Transparency, results and status of the whole process is given for Collections Agents, Call Center Agents, Sales and Financial Staff
  • Results and status - also of the external collection steps - are now transferred to FI-CA Sub-ledger and collections history
  • 360° view on end-customer is given
  • Follow-up processes of external steps are automatically triggered in the SAP-System (e.g. posting payments or write-offs)

    For details on Service Operations, Business Objects and Process Components, please check the documentation under
    esoadocu.sap.com.

How to Use This ES Bundle

The functionality of the bundle is integrated in the existing credit & collections functionality based on FI-CA.

Use Case 1: Checking probability of collection success before final collection

Table of Contents

Prior to initiate legal dunning via external collection agencies or using 3rd Party application, it is possible to check an external debt recovery score from external credit agencies. The debt recovery score describes the probability to collect the outstanding debts of an individual customer. Like all credit risk information the debt recovery score is managed within SAP Credit Management.
If the debt recovery score is not yet stored in SAP Credit Management, SAP Credit Management requests the debt recovery score from an external credit agency first.  To enable the process of these steps, the integration of SAP Credit Management with external credit agencies has to be implemented.

The following table summarizes these steps and the associated enterprise services:

Step

Enterprise Service Invoked

Step 1: Request debt recovery score from SAP Credit Management

CreditAgencyReportERPDebtRecoveryScoreByDebtorPartyQuery (SAP FI-CA)
CreditAgencyReportERPDebtRecoveryScoreByDebtorPartyQuery (SAP Credit Management)

Step 2: Request debt recovery score from Credit Agency (optional)

CreditAgencyReportQuery (SAP Credit Management)

Step 3: Receive debt recovery score from Credit Agency (optional)

CreditAgencyReportResponse (SAP Credit Management)

Step 4: Receive debt recovery score from SAP Credit Management

CreditAgencyReportERPDebtRecoveryScoreByDebtorPartyResponse (SAP FI-CA)
CreditAgencyReportERPDebtRecoveryScoreByDebtorPartyResponse (SAP Credit Management)

Step 5: Submit collection items for external collection to collection agency

CommissionedOutstandingCollectionsERPBulkRequest (SAP FI-CA)

Use Case 1 (click to enlarge)



Use Case 2: Interacting with external collection agency

If an external collections agency is involved for the final collection steps, the agency tries to collect the outstanding receivables including legal dunning activities if needed. To support the process a back and forward information transfer between SAP-System and external collection agency is needed. It takes into account outstanding items, status, payments and external collections steps. SAP has to be the leading system regarding the overview and the current status of collection.

The following table summarizes these steps and the associated enterprise services:

Step

Enterprise Service Invoked

Step 1: Release collection items for external collections

n.a.

Step 2: Submit collection items for external collection to collection agency

CommissionedOutstandingCollectionsERPBulkRequest

Step 3: Confirmation of collection items from collection agency

CommissionedOutstandingCollectionsERPBulkConfirmation

Step 4: Receive detailed status and payment / uncollectable information from collection agency

CommissionedOutstandingCollectionsERPBulkConfirmation

Step 5: Follow up processes regarding payment postings / allocation or write-off

n.a.

Use Case 2 (click to enlarge)

Use Case 3: Interacting with an in-house legal dunning application (3rd Party Application)

In case of legal dunning the process is only supported if an in-house legal dunning application (3rd Party Application) is used. An interaction between SAP-System and 3rd Party Application - back and forward - is necessary regarding the information transfer. SAP has to be the leading system regarding the overview and the current status of collection.

The following table summarizes these steps and the associated enterprise services:

Step

Enterprise Service Invoked

Step 1: Release collection items for legal dunning

n.a.

Step 2: Submit collection items for legal dunning to legal dunning

CommissionedOutstandingCollectionsERPBulkRequest

Step 3: Receive detailed status information concerning legal dunning

CommissionedOutstandingCollectionsERPBulkConfirmation

Step 4: Receive payment from customer via common payment channels 

n.a.

Step 5: Request payment allocation information

CommissionedOutstandingCollectionsERPBulkRequest

Step 6: Receive payment allocation information

CommissionedOutstandingCollectionsERPBulkConfirmation

Step 7: Allocate payment on customers account

n.a.

Remark: the service interfaces support the Steps 5 to 6, but the FI-CA business functionality is not implemented.

Use Case 3 (click to enlarge)

Using This ES Bundle with an Existing Test Application

It is possible to test the enterprise service CommissionedOutstandingCollectionsERPBulkConfirmation by using the report RFKKCOLL_CONFIRMATION_XI_TEST. The report simulates the external collection agency/3rd party system. The test outbound interface CommissionedOutstandingCollectionsERPBulkConfirmation_Out must be linked to the standard inbound interface CommissionedOutstandingCollectionsERPBulkConfirmation_In in the SAP Process Integration (formerly XI:XI). To process the test you can have a look at the testcases.

Using This ES Bundle with Partner Applications

The DSC product 'Anbindung an die SAP Enterprise Services für "Abgaben Inkasso" (Connection to SAP Enterprise Servies for 'Submission to Collection') supports the communication between the product 'ABIT phinAMVplus' and the SAP ERP system using the enterprise services provided with this ES bundle. ABIT phinAMWplus is the established product for legal dunning in Germany. More information about the DSC product can be found at http://www.dsc-gmbh.com/produkte_GMV.php

Of course it is technically possible to connect any other system for legal dunning.

Future Directions

Future releases may enhance services regarding address research and viewing collection cases also in Financial Customer Care (CRM IC-Webclient) System.

System Requirements

End-to-end Processes Where This ES Bundle Is Used