R12 Adv Collections

Copyright © 2006, Oracle. All rights reserved.1

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Overview

Advanced Collections

Release TwelveThe Global Business Release:A New Financial Architecture


What is Oracle Collections?

• Proactive and targeted contact methods through multiple channels

• Single Schema with A/R for delinquency data, payment processing, aging buckets

• Complete customer view• Tasks, Notes, Interaction History, Territories, UWQ• Automated Scoring, Dunning, Follow-up Tasks• Real-time access to iPayment for credit card, EFT

transfer • Reporting - Customers, Agents, Due Diligence,

Campaigns• Best collections practices


What is collections?


Collections Panacea

Visibility across Business Units

• True view of customer

Automation of Collections Process

• Built-in efficiencies

Optimization

• Implement new strategies

Improve Customer Experience

• Competitive advantage


Oracle Solution Process Flow:

Collections Admin

• Collection Scores

• Dunning Strategies

• Territory Assignment

Customer Delinquencies

Collection Strategies

Collections Manager

• Campaigns

• Segments

• Intelligence

eBusiness Center

• Sales

• Service

• Customer Mgmt.

Universal Work Queue

Collections

Collections Agent

• CTI• Calls• Tasks

• Payments

• Disputes

• History

• Notes

Reports/ Intelligence

Update Strategies

Collections Manager


3 Major Flows

Collections Manager• Scoring, Dunning, Reports

Collections Agent• Review History and Contact Customer

Additional Strategies• Marketing and Self Service


Oracle Solution Process Flow:

Customer Collections Scoring

Create Scoring

Components

Build Scoring Engine

Create Dunning Letters

Create Dunning

Plan

• Aging Bucket

• Collection Score Range

• Dunning Letter

• Fulfillment Method

• Callback ?/ Days

Dunning Plans

Generate Customer

Score

Customer Delinquencies

Execute Dunning

Plan

Dunning Letters Sent

Define Territories

UWQ Task Creation

Agent Assignment

• Tasks

• Callbacks

Payment Processing

Update


Collections Automated Processes

Create Delinquencies

Score Customers

Age Delinquencies

Track Promises to Pay

Execute Dunning Plans

Process Payments

Create Call Backs (broken promises, dunning)

Create Follow-up activities

Triggered Campaigns


Reports

Pay onAccount

Pay on Invoice

Collector Login/

Navigator

Universal Work

Queue

Customer Collections

iPayment

Authorization

Payments/Disputes

Collections

A/R

Delinquencies/Payment Status

Sales & Service

Org, Person, Address,

Relationship

Collections Tab

Order Capture

eBusiness Center

TasksNotesHistoriesCollectionsProfile

Collections Functions


Campaigns Defined in

OMO

Target Lists Generated

Campaigns Executed

Customer Scoring in Collections

Discoverer 9i Data Mining

Team QueuesGeography, Product

Industry

Advanced Outbound Campaign

Assign Collector to Campaign

Assign Campaign Outcomes

Define Additional Strategies

E-Mail Collection Campaign

Self Service

Dunning Letters Sent

Universal Work Queue

Collections• CTI Screen Pop• Progressive Dialing

iReceivables

View / Pay / Dispute Invoices

iPayment

A/R Balances Updated

Credit card authorization


Collections

Manage Collections

Collections

Manage Payments

Delinquency to Payment

Collections

Score Delinquent Items and Assign Work Items

Collections, Receivables

Manage Collections

Customer Invoice to Cash

Customer Invoice to CashCredit Approval to Customer

IEX100

Score Delinquent Items

IEX100

Score Delinquent Items

IEX200

Apply Strategy to Delinquent Items

IEX200

Apply Strategy to Delinquent Items

IEX300

Assign Strategy Work Items to

Delinquent Items

IEX300

Assign Strategy Work Items to

Delinquent Items

IEX400Review Delinquent Customer Records

IEX400Review Delinquent Customer Records

IEX500Interact with the

Customer

IEX500Interact with the

Customer

IEX600

Reconcile Promises and Payments

IEX600

Reconcile Promises and Payments

IEX999

InitiateLater Stage

Delinquency Action

IEX999

InitiateLater Stage

Delinquency Action

Concurrent ProgramPossible Levels:• Delinquency• Bill-To Location• Account• Customer

Concurrent ProgramPossible Levels:• Delinquency• Bill-To Location• Account• Customer

Concurrent Program• Manual Work

Items(Phone Calls etc)

• Automatic Work Items (Dunning Letters etc)

• Delinquent Items (Several Levels)

• (Broken) Promises• Interactions, Aging,

Disputes, Adjustments, Tasks, Notes, Payments, Receipts at Risk, etc.

• Record Interaction• Record Promise to

Pay or Payment• Record Dispute,

Adjustment• Record Task, Note• Send Copy Invoice,

Send Copy Dunning• Send Statement

Concurrent Program• Creates Broken

Promise in UWQ if Promise was not kept

• Invoices are no longer labeled as delinquent if they were fully paid.

Not in Scope

Collections Agent

Collections Forms Administrator

Accounts Receivable Clerk

• Restatus Later Stage Delinquency Customers

• Assign to Manager/Specialist


Customer Balance

Customer : Customer : CDS Inc – Balance due 332198.81


ScoringScoring Criteria Weight Range low Range high Score value

Overdue /Total outstanding 0.2 0

0.01

10.01

20.01

0

10

20

100

100

50

20

0

Amount overdue 0.3 -99999

0.01

100.01

1000.01

5000.01

0

10

1000

5000

999999

100

90

50

30

0

Risky code 0.1 0

1.51

2.51

1.5

2.5

3.5

100

50

0

Late days lastest invoice 0.4 -99999

0.01

10.01

50.01

100.01

0

10

50

100

999999

100

90

50

20

0


Scoring Analyze

Scoring Criteria Weight Customer value

Score value

Overdue /Total outstanding

0.2 100 0

Amount overdue 0.3 332 198.81 0

Risky code 0.1 Low 100

Late days lastest invoice 0.4 08-2006 0

Calculation :(0.2*0)+(0.3*0)+(0.1*100)+(0.4*0)=10


Strategy

Strategy type Note

ADS Customer Soft Collections Strategy 80 to 100

ADS Customer Moderate Collections Strategy

50 to 81

ADS Customer Hard Collections Strategy 1 to 49


Universal work queue


Collection screen

« Customer standard » button

For review or update Customer


Collection screen


Collection screen


Collection screen


Collection screen

« Customer standard » button

For review or update Customer

«Detail» button

For review Customer account


Collection screen


Collection screen

« Transaction » button

For review invoice detail, enter a promise or a payment,

send a copie

« Adjustment Processing » button

For enter a adjustment


Collection screen« Payment Processing » button

For enter a promise or a payment

« Full screen» button


Collection screen

« Lifecycle » Tab

To declare bankruptcy or litigation for a customer


Collection screen


Collection screen

« Notes » Tab

To create a note


Collection screen

« Tasks » Tab

To create a addition task in your or a colleague workqueue


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Release Twelve


Release TwelveThe Global Business Release:A New Financial Architecture


New and Changed Features forAdvanced Collections

• Multi-Org Access Control

• Uptake of Cross Operating Unit Initiative

• New Implementation Checklist and Setup Screens

• Improved Payment Processing and Customer Funds Capture

• Use of Oracle Territory Management to Define Collections Territory Hierarchy

• Migration of AR Collections Functionality into Advanced Collections


Multi-Org Access ControlDescription

Multi-Org Access Control (MOAC)– Uses of Multi-Org Access Control global security profiles that

define users access to customer data and business transactions.

– Provides access to unlimited number of operating units within a single applications responsibility.

– Enables shared services while maintaining operating unit security


Multi-Org Access ControlBenefits

• Improve efficiency– Easily access data from different operating units– Improve Shared Services operations

• Provide complete information for decision making– Global consolidated view of data across operating units

• Reduce Costs– Cut down processing time


ResponsibilityResponsibility ResponsibilityResponsibility ResponsibilityResponsibility

From Multi-Org …To Multi-Access

Holland

Legal Entity

Denmark

Legal Entity

Belgium

Legal Entity

Tasks Collections Invoices & Payments

Tasks Collections Invoices & Payments

Single Responsibility

Belgium

Operating Unit

Holland

Operating Unit

Denmark

Operating Unit

Perform multiple tasks across operating units without changing responsibilities


Multi-Org Access ControlSetup and Process

Define security profile &assign operating units

Run Security List Maintenance

Assign security profile to

responsibility or user Application

checksaccess privilege

Automated process

SETUP PROCESS

Login into a responsibility

Open Application

Enter data for operating units

Define operating unitpreference (optional)


Multi-Org Access ControlSetup – Create Operating Unit

• Financials Accounting Setup Manager

OR

• HRMS Organization Form


Multi-Org Access ControlSetup – Define Security Profile

Classify Organization as operating

unit

Select Operating Unit classification


Multi-Org Access ControlSetup – Run System List Maintenance


Multi-Org Access ControlSetup – Set Profile Options

Profile Value Description

MO: Security Profile

MO: Default Operating UnitIdentify the default operating unit

for the user when accessing an application

Identify the list of operating units

that the user can access

MO: Operating Unit

R11i profile option that will be maintained

for those products and customers not

leveraging Multiple Organizations.


Multi-Org Access ControlDependencies and Interactions

• Oracle HRMS– Define operating units – Set up Multi-Org Security Profiles

• Oracle E-Business Suite Products– Take advantage of the benefits of Multi-Org Access Control


Multi-Org Access Control Dependencies and Interactions

Product Name Leveraging Multi-Org Access Control feature


Global collections agency with consolidated view of customer accounts and collection tasks for multiple operating units.

PurchasingAbility to negotiate discounts armed with consolidated requisition demands.

ReceivablesProvide global information for decision making purposes with new cross-org reports.

Accounting Setup Manager

Create ledgers and operating units through the Accounting Setup Manager

Payables

Reduce processing time with the ability to enter invoices for multiple operating units without switching responsibilities.

Reduce processing cost with the ability to pay invoices for multiple operating units in a single pay run.


Multi-Org Access ControlSummary

• Access multiple operating units within a single application responsibility

• Perform tasks for and across multiple operating units– Enter transactions– Process data – View information– Run reports

• Increase effectiveness of Shared Service Centers

Benefits

• Improve accessibility

• Increase information for decision making

• Reduce costs


Cross Operating Unit Initiative Description

Cross Operating Unit Initiative• Users of Advanced Collections will have visibility to one or

more operating units associated to a customer. • Data can be displayed within one operating unit or across all

operating units.


Cross Operating Unit Initiative Description

Operating Unit List Of Values

NEW


Cross Operating Unit Initiative Benefits

• Increase Efficiency– Better visibility into customer data– Collections activities such as strategies and work items,

dunning letters, and collections calls can incorporate transactional and customer data from different operating units.

• Reduce Cost– Perform processes quicker

• Improved Customer Experience– Provide continuous service without transferring calls– All information available to a collector


Cross Operating Unit Initiative Dependencies and Interactions

• Oracle Universal Work Queue– Set up Quick Filters for Advanced Collections Universal Work

Queue Nodes


Cross Operating Unit Initiative Summary

Cross Operating Unit Initiative provides:

• Increased Efficiency– Better visibility into customer data– Collections activities such as strategies and work items,

dunning letters, and collections calls can incorporate transactional and customer data from different operating units.

• Reduce Cost to Collect

• Improved Customer Experience

Benefits

•Better view into customer information•Reduced cost to collect•Few customer contacts needed


New Collections Setup ScreensDescription

New Collections Setup Screens– Collections Setup Checklist designed to ease setup and

provide a single place to record and manage implementation decisions.

– Checklist guides the manager through a questionnaire that asks key questions about the intended use of Oracle Advanced Collections.

– Manager’s responses automatically set system profiles, settings and Task Pages on which the manager provides additional detailed setup information.


New Collections Setup ScreensDescription

NEW


New Collections Setup ScreensBenefits

• Collections Setup Checklist allows functional experts to do an “out of the box” set up of Oracle Advanced Collections independent of corporate IT staff.

• Improved customer experience during implementation and later


New Collections Setup ScreensSetup – Collections Questionnaire

• Collections Administrator Responsibility>Checklist– This allows you to

navigate to the new setup user interface

• Select the questionnaire– Walk through the three-

station train filling in the questions


New Collections Setup ScreensSetup – Additional Tasks

• Collections Administrator Responsibility>Setup Checklist– Update the tasks under

the Operations, Transactions and Collections Method Setups

– Save updates


New Collections Setup Screens Summary

• Functional Experts can configure “Out of the Box”

• Improved implementation experience

• Cost and time savings by minimizing IT involvement

Benefits

• Optimize resources who know how they want collections to be setup• Reduced impact on IT department• Improved user experience • User friendly screens to configure and maintain the application


Improved Payment Processing & Customer Funds CaptureDescription

• Enhanced Customer Credit Card and Bank Account Management– Oracle Payments’ (formerly Oracle iPayment) new payment

formatting and end-to-end electronic payment processing features made available in this release.

– Provides ability to use masked customer credit card or bank account information when taking payments.

– Agents will easily navigate to another screen to add new customer information.

– Payments can be automatically captured and authorized.


Improved Payment Processing & Customer Funds CaptureBenefits

• Controls access to sensitive customer data during payment process

• Efficient update of customer information without leaving Collections– Centralized management of data across eBusiness Suite

applications

• Increased productivity, decreased data entry errors, improved security

• Improved customer and user experience


Improved Payment Processing & Customer Funds Capture Dependencies and Interactions

• Oracle Payments– Configure application– Coordinate banking partner

• Oracle Receivables– Setup payment methods


Improved Payment Processing & Customer Funds Capture Summary

• Enhanced controls of sensitive data

• Improved collector efficiency– Ability to enter payment instruments– Centralized management of data across the eBusiness Suite

Benefits

• Improved security around sensitive data• Reduced credit card fraud through use of security code feature• Improved customer and collector experience


“Collections” Usage for Territory Management Description

• Collections Territory Usage– Ability to use Oracle Territory Manager’s ‘collections’ usage to

support the creation and use of collections territory hierarchy. – Collectors can then be assigned to customers within these

collections territories.


“Collections” Usage for Territory Management Benefits

• Unique collections territories can be created, different than sales territories

• Improve management of customer to collector ownership

• Improved performance


“Collections” Usage for Territory Management Dependencies and Interactions

• Oracle Territory Management– Enable Qualifiers– Configure Templates and Territories– Run Concurrent Programs

• Oracle Receivables– Create Collectors

• Oracle CRM Application Foundation – Resource Manager– Create Resources


“Collections” Usage for Territory Management Summary

• Unique Collection Territories Usage

• Improve management and control of territories

• Improved performance


Migration of AR Collections Functionality into Advanced Collections

Description

– Collections Workbench in Oracle Receivables will be obsolete and replaced with like functionality in Oracle Advanced Collections.

– Visibility to workbench data is migrated to Advanced Collections. “Basic” collections functionality will be available to customers already licensing AR.

– A migration white paper and migration scripts will be provided to Oracle Receivables customers moving to Oracle Advanced Collections.



Benefits

• Improved navigation and visibility to delinquent customers

• Automated collections management processes improve collector productivity and reduce DSO

• Separates collector and AR clerk functionality; improved SOX compliance

• Consolidation of collections functionality for eBusiness Suite customers



Acc

ou

nts

Rec

eiva

ble

Cu

sto

mer

Dat

a

Collector/Resource



Dependencies and Interactions

• XML– Configure correspondence used for dunning and other

letters

• Concurrent Processes– Scoring Program– Dunning Program - Correspondence & Call Back– Workflow Background Processes– AR Refresh– Promise Reconciliation



Summary

• Better navigation and visibility to delinquent customers

• Automated collections management processes improve collector productivity and reduce DSO

• Separates collector and AR clerk functionality; improved SOX compliance

• Consolidation of collections functionality between the modules


New Feature for R12.1

• Status Assignment at Case and Contract Level

• Customer Level Bankruptcy


Status Assignment at Case and Contract LevelDescription

Allow status (i.e. Litigation, Repossession and Write-off) assignment at Contract and Case level


Status Assignment at Case and Contract Level Business Value

Manage later stage delinquency at case, contract or transaction level

Manage collection strategy effectively


Status Assignment at Case and Contract LevelAssigning status in contract tab

Right click of mouse button will enable

status option


Status Assignment at Case and Contract Level Assigning status in case management tab

New status button added


Status Assignment at Case and Contract Level Dependencies and Interactions

Oracle Leasing needs to be installed to enable this functionality.


Customer Level Bankruptcy Description

Enables bankruptcy only at the customer level

Ensures adherence to the generally accepted practice around bankruptcy

Business Value


New option added

Customer Level Bankruptcy Feature

Documents

R12 Adv Collections