Table of Contents

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Preface
17
Target Audience
17
How This Book is Organized
18
Acknowledgments
20
1 Introduction to Receivables Management
21
1.1 Receivables Management as a Business Imperative
21
1.2 Receivables Management in SAP S/4HANA
24
1.2.1 Accounts Receivable
25
1.2.2 Credit Management
29
1.2.3 Dispute Management
30
1.2.4 Collections Management
34
1.3 Improvements over SAP ERP Functionalities
37
1.3.1 Classic Credit Management and SAP S/4HANA Credit Management
38
1.3.2 SAP Fiori Apps for Receivables Management
40
1.4 Summary
46
2 Business Partner Master Data
47
2.1 Business Partner Approach in SAP S/4HANA
48
2.1.1 Advantages of the Business Partner Approach
48
2.1.2 SAP ERP versus SAP S/4HANA
51
2.2 Business Partner Configuration for Customers
52
2.2.1 Customer Account Groups
52
2.2.2 Number Ranges for Customer Account Groups
54
2.2.3 Number Ranges for Business Partners
56
2.2.4 Business Partner Grouping
57
2.2.5 Business Partner Roles
59
2.2.6 Business Partner Types
62
2.2.7 Field Grouping and Screen Configuration
63
2.3 Customer-Vendor Integration
65
2.3.1 Activating Synchronization
65
2.3.2 Configuring Business Partner Role Categories for Customer Integration
66
2.3.3 Assigning Business Partner Groups to Customer Account Groups
68
2.4 Business Partner Master Data
69
2.4.1 General Data Attributes
70
2.4.2 Financial Accounting (Company Code) Attributes
73
2.4.3 Sales and Distribution (Sales Area) Attributes
76
2.4.4 Credit Management Attributes
79
2.4.5 Collections Management Attributes
82
2.4.6 Creating a Business Partner for a Contact Person
83
2.5 SAP Fiori Apps for Business Partners
87
2.6 Summary
87
3 Accounts Receivable
89
3.1 Invoice Posting
89
3.1.1 Invoices with Reference to Sales Order
90
3.1.2 Invoices without Reference to Sales Order
94
3.2 Clearing Transactions
98
3.2.1 Manual Clearing
99
3.2.2 Automatic Clearing
105
3.3 Cash Application and Incoming Payments
108
3.3.1 Down Payments
108
3.3.2 Manual Cash Application
115
3.3.3 Cash Application Using Electronic Bank Statements
118
3.3.4 Cash Application Using Lockbox
124
3.4 Dunning
133
3.4.1 Dunning Procedures
134
3.4.2 Dunning Attributes
135
3.4.3 Dunning Proposals
136
3.5 Creating Correspondence
148
3.6 Analytical Apps for Accounts Receivable
150
3.6.1 Accounts Receivable Overview
151
3.6.2 Overdue Receivables
154
3.6.3 Future Receivables
163
3.6.4 Days Sales Outstanding
164
3.6.5 Days Beyond Terms
170
3.6.6 Displaying Customer Balances/Managing Customer Line Items
171
3.7 Summary
175
4 Configuring Accounts Receivable
177
4.1 Configuring Customer Invoices/Credit Memos
177
4.1.1 Document Types and Number Ranges
178
4.1.2 Payment Terms
180
4.2 Configuring Open Item Clearing
183
4.2.1 Tolerance Groups
183
4.2.2 Exchange Rate Realized Gain or Loss
185
4.2.3 Automatic Clearing
188
4.3 Configuring Down Payments
189
4.3.1 Down Payments Received
190
4.3.2 Down Payment Requests Received
191
4.3.3 SAP Fiori Apps for Down Payments
192
4.4 Configuring Electronic Bank Statements for Cash Application
193
4.4.1 Account Symbols
194
4.4.2 Posting Rules
195
4.4.3 Transaction Types
197
4.4.4 Electronic Bank Statement Configuration
199
4.5 Configuring Lockbox for Cash Application
201
4.6 Configuring Dunning
204
4.6.1 Dunning Procedures
205
4.6.2 Dunning Levels
207
4.6.3 Charges
209
4.6.4 Minimum Amounts
210
4.6.5 Dunning Texts
210
4.6.6 Special General Ledger Indicators
212
4.7 Configuring Correspondence
213
4.7.1 Correspondence Types
213
4.7.2 Programs and Variants
216
4.7.3 Sort Order for Line Items
218
4.8 Summary
220
5 Credit Management
221
5.1 Credit Management at a Glance
222
5.1.1 SAP S/4HANA versus SAP ERP
223
5.1.2 Basic Credit Management
226
5.1.3 Advanced Credit Management
229
5.1.4 Common Challenges and Key Drivers
231
5.2 Organizational Structure for Credit Management
232
5.2.1 Credit Segment
233
5.2.2 Credit Control Area
235
5.3 Business Partner Master Data for Credit Management
236
5.3.1 Assignment of Credit Management Role to Business Partner
237
5.3.2 Business Partner Relationships for Credit Management
245
5.3.3 Mass Updates for Credit Management Master Data
248
5.4 Set Up Credit Score, Risk Class, and Credit Limit
254
5.4.1 Set Up Credit Limit and Credit Score
254
5.4.2 Calculate Credit Score, Risk Class, and Credit Limit Using Formulas
255
5.4.3 Create and Approve Credit Limit Request
255
5.5 Credit Check and Automatic Credit Control
258
5.5.1 Credit Check
258
5.5.2 Automatic Credit Control
260
5.6 Manage Blocked Sales Documents Using Documented Credit Decisions
262
5.6.1 Review Blocked Sales Documents
262
5.6.2 Release Cases of Blocked Sales Documents
267
5.6.3 Reject Cases of Blocked Sales Documents
267
5.6.4 Reprocess Credit Check of Blocked Sales Documents
268
5.6.5 Void Cases of Blocked Sales Documents
268
5.7 Analytical Apps for Credit Management
268
5.7.1 Display Credit Management Log
268
5.7.2 Display Credit Data: Credit Profile
269
5.7.3 Display Credit Data: Segment
270
5.7.4 Display Credit Limit Utilization
270
5.7.5 Display Payment Behavior
271
5.7.6 Display Credit Exposure
272
5.7.7 Display Credit Account Data
272
5.7.8 Display Additional Information for Credit Management
273
5.8 Summary
274
6 Configuring Credit Management
275
6.1 Activating Credit Management, Organizational Units, and Master Data
275
6.1.1 Activating Credit Management
275
6.1.2 Defining Credit Control Area
277
6.1.3 Assigning a Company Code to a Credit Control Area
277
6.1.4 Defining Credit Segment
278
6.1.5 Assigning Credit Control Areas to Credit Segments
279
6.1.6 Assigning Sales Areas to Credit Control Areas
279
6.2 Configuration in Accounts Receivable
279
6.2.1 Reconciliation Accounts without Credit Management Updates
279
6.2.2 Payment Behavior Summaries
280
6.2.3 Credit Exposure Updates
282
6.3 Configuration in Sales and Distribution
284
6.3.1 Credit Value of a Sales Order
284
6.3.2 Credit Control Area of a Sales Order
285
6.3.3 Credit Limit Check for an Item Category
285
6.3.4 Credit Group
286
6.3.5 Credit Limit Check for Sales Order, Delivery, and Goods Issue
287
6.3.6 Risk Categories/Risk Classes
288
6.3.7 Automatic Credit Control
289
6.3.8 Blocking Reasons
291
6.3.9 Field Groups for Parameters
293
6.3.10 Check Rules
293
6.3.11 Triggering Events and Follow-On Processes
295
6.4 Configuring Documented Credit Decisions
298
6.4.1 Sales and Distribution
298
6.4.2 Case Management
300
6.5 Summary
310
7 Dispute Management
311
7.1 Dispute Management at a Glance
311
7.1.1 Common Challenges and Key Drivers
312
7.1.2 Business Benefits
312
7.2 Dispute Case Attributes
313
7.3 Dispute Case Processing
317
7.3.1 Dispute Case Creation
317
7.3.2 Assigning Financial Accounting Objects
319
7.3.3 Mass Changes to Dispute Cases
323
7.4 Creating/Displaying Dispute Cases from Financial Accounting
325
7.4.1 Creating Dispute Cases from Document Display
325
7.4.2 Displaying Dispute Cases in Customer Line Item Reports
329
7.4.3 Creating Dispute Cases from Incoming Payment (Clearing) Transactions
334
7.4.4 Creating Dispute Cases from Reprocessed Bank Statement Items
338
7.5 Automatic Creation of Dispute Cases
345
7.5.1 Reason Codes and Dispute Management Reason Attributes
346
7.5.2 Residual Item Creation with Reason Code with Lockbox
347
7.5.3 Residual Items with Reason Codes with Reprocessing Bank Statement Items
350
7.5.4 Automatic Dispute Case Creation
352
7.6 Updates to Dispute Cases
359
7.6.1 Dispute Case Status
360
7.6.2 Document Changes from Dispute Cases
360
7.6.3 Automatic Closure of Dispute Cases
366
7.6.4 Automatic Write-Offs for Dispute Cases
370
7.6.5 Voiding Dispute Cases
377
7.6.6 Assignment of Credit Memos
381
7.6.7 Reopening a Closed Dispute Case/Confirming Dispute Cases
393
7.7 Analytical Apps for Dispute Management
396
7.7.1 Manage Dispute Cases
396
7.7.2 Schedule Dispute Management Jobs
400
7.7.3 Open Disputes – Today
400
7.7.4 Overdue Receivables in Dispute
404
7.7.5 Solved Disputes – Last 12 Months
409
7.7.6 New Versus Solved Disputes – Today
410
7.7.7 Processing Days of Open Disputes – Average Today
412
7.8 Summary
413
8 Configuring Dispute Management
415
8.1 Configuring Dispute Case Processing
415
8.1.1 Record Management System IDs
415
8.1.2 Element Types
417
8.1.3 Case Record Models
418
8.1.4 Element Types for Case Records
425
8.1.5 Number Ranges
428
8.1.6 Attribute Profiles
429
8.1.7 Case Search Profiles
434
8.1.8 Function Profiles
437
8.1.9 Text Profiles
442
8.1.10 Status Profiles
443
8.1.11 Action Profiles
446
8.1.12 Case Types
450
8.1.13 Values for Various Attributes
452
8.1.14 Automatic Status Changes
454
8.2 Configuring Integration with Accounts Receivable
455
8.2.1 Activating Integration with Accounts Receivable
455
8.2.2 Priority and Accounts Receivable Code Mapping with Reasons
455
8.2.3 Customer-Disputed Objects in Dispute Cases
457
8.2.4 Automatic Write-Off of Dispute Cases
457
8.2.5 Automatic Document Changes from Dispute Cases
459
8.2.6 Open Credits and Payments
461
8.3 Summary
462
9 Collections Management
463
9.1 Collections Management at a Glance
463
9.1.1 Common Challenges and Key Drivers
464
9.1.2 Business Benefits
464
9.1.3 Roles and Processes
466
9.2 Organizational Structure for Collections Management
466
9.2.1 Collection Profile
467
9.2.2 Collection Segment
467
9.2.3 Collection Group
467
9.2.4 Collection Specialist/Collection Supervisor
470
9.2.5 Collection Strategy
470
9.3 Business Partner Master Data for Collections Management
478
9.3.1 Assigning Collections Management Roles to Business Partners
478
9.3.2 Mass Updates for Collections Management
479
9.3.3 Assigning Substitute Collection Specialists
489
9.4 Data Synchronization and Worklist Creation
490
9.4.1 Transferring Data from Accounts Receivable to Collections Management
491
9.4.2 Creating Worklists
495
9.4.3 Collection Supervisor Worklist Review
498
9.4.4 Proactive Collection Strategy versus a Traditional Collection Strategy
504
9.4.5 Special General Ledger Transaction (Down Payment Requests)
509
9.5 Collection of Receivables
511
9.5.1 Accessing the Worklist
511
9.5.2 Creating Promise to Pay and Recording Customer Contacts
517
9.5.3 Creating Dispute Cases Using Process Receivables
525
9.5.4 Creating Resubmissions
529
9.6 Promise to Pay Integration with Accounts Receivable Processes
531
9.6.1 Incoming Payments for Promised Invoices
532
9.6.2 Dunning Block on Invoices with Promise to Pay
535
9.6.3 Creating Installment Plans for Promise to Pay
537
9.6.4 Broken Promise to Pay
543
9.7 Analytical Apps for Collections Management
545
9.7.1 Collection Progress – Current Run
545
9.7.2 Promise to Pay – Today
548
9.7.3 Cash Collection Tracker – Collections Management
550
9.8 Summary
551
10 Configuring Collections Management
553
10.1 Activating Collections Management
553
10.2 Configuring Collection Strategies
555
10.2.1 Basic Rules
556
10.2.2 Collection Rules
558
10.2.3 Collection Strategies
559
10.2.4 Priorities
564
10.3 Configuring the Collections Management Organizational Structure
565
10.3.1 Organizational Structure Elements
565
10.3.2 Collection Groups
567
10.3.3 Collection Segments
568
10.3.4 Collection Profiles
569
10.3.5 Assigning Collection Groups to Collection Segments
570
10.4 Configuring Promise to Pay
571
10.4.1 Promise to Pay Case Types
572
10.4.2 Process Integration
578
10.4.3 Assigning Case Types to Company Codes
579
10.4.4 Installment Plan Types
580
10.5 Configuring Customer Contacts
581
10.6 Configuring Resubmission Reasons
584
10.7 Configuring Integration with Dispute Management
585
10.8 Configuring Integration with Accounts Receivable
585
10.8.1 Master Data Distribution
586
10.8.2 Defining Relevant Fields for Document and Master Record Changes
586
10.8.3 Harmonizing Dunning Levels in Collections Management
588
10.8.4 Activating Process Integration of Documents with Special General Ledger Indicators
589
10.8.5 Defining Additional Functions
589
10.9 Summary
591
11 Central Receivables Management
593
11.1 Central Receivables with Central Finance
593
11.1.1 Central Payments
594
11.1.2 Central Dispute Management
595
11.1.3 Central Collections Management
596
11.1.4 Central Credit Management
597
11.1.5 Additional Information
597
11.2 Central Receivables without Central Finance
598
11.2.1 Central Receivables
598
11.2.2 Data Flow: Customer Master Data
599
11.2.3 Data Flow: Transaction Data Relevant for Collections Management
604
11.2.4 Data Flow: Accounts Receivable Data Relevant for Credit Management
605
11.2.5 Data Flow: Sales and Distribution Data Relevant for Credit Management
606
11.3 Summary
606
The Author
607
Contributors
607
Index
609