Continuing from Receivables articles last bit of Business process is to collect Receivables & ensure any default is handled appropriately.Fusion Release9 onwards complete functionality of collections is available to business users. Fusion Advanced Collections provides a streamlined and user-friendly user interface for collection professionals to easily identify delinquent customers and manage collections activities for which they are responsible.This article provides overview of collection setup overview & following article we will discuss Fusion Collections process in more detail.

 · Collectors can navigate easily from the Collections Dashboard to the Customer Work Area where the focus is on collecting on specific delinquent customers.  The information provided allows collectors to treat each customer uniquely.  In turn, this help improve customer relations which can directly relate to higher collectability and a lower DSO.

 · Real-time tools such as managing assigned work, sending dunning correspondence, taking a payment, processing a dispute and/or an adjustment can help making curing a customer simple and easy for the collector and the customer.

· Managers can schedule background processes to automatically identify delinquent bills, update customer transactional data, and send dunning letters to customers.

 Fusion Collections Setup Tasks

Functional Setup Manager is used to set up Fusion Advanced Collections along with all other applications such as Receivables, Payments, etc.

Setup Tasks are usually performed by a subject matter expert on the implementation team.

Define Collections is found in the Financials Offering.

The list of setup tasks for Define Collections is displayed by clicking on the right arrow icon next to the name.

All required setup activities and tasks are marked with an asterisk (*) before the name.

The task page is viewed by clicking on the Task icon on the Go to Task column

Along with the setup tasks for Define Collections, additional common setup tasks are required. The pre-requisite steps include:

HCM : Create employees, jobs, and roles must be created and are configured prior to starting a Financials implementation project

Financials Common Module : Create Reference Data Set:  Collectors can access specific set-ids based on reference data set security

General Ledger : Financial structures such as Business Units are setup in this module

Receivables : Transaction types, receipts, payment methods, adjustment approval limits are all configured in this module

Payments : Funds Capture settings are configured to support payment processing

Following Three Mandatory Setup are required in addition to Seven Optional Steps

•          Manage Dunning Configurations

•          Manage Collections Lookups

•          Manage Collections Note Type

•          Manage Collections Note Type Mapping

•          Manage Collections Note Descriptive Flexfields*

•          Manage Collections Task Standard Lookups

•          Manage Collections Task Default Profile Option*

(a)    Aging Methods are used in determining the Overdue Balances & are used to determine the strategy to be used to Collect Monies accordingly eg You might want to Followup in email for smaller balances while significant balances may require phone call & possibly legal notices & so on, Aging methods are used in:

•  Update Collections Summary Data process for information displayed on Collector Dashboard

•  Defaulted aging method displayed on Aging tab

•   Configuration of correspondence setup for dunning

•   Aging Reports

Validate on collections work area aging tab.

(b)   Collections Preferences consists of two regions:

Global Collections Preferences determine how default navigation, displays, date ranges, aging methods, search and dunning addresses are used throughout the system.

Additional preferences determine how default collections business levels, aging, exchange rate, correspondence send method and correspondence contact for specific data sets.

If no other data sets are set up, these values come from the Common Set

Global Preferences - applied to all sets and default values in Collections Dashboard and Customer Work Area.

•   Transaction class

•   Date range of transactions

•   Include current

•   Include closed

•   Aging Method

•   Dashboard work status days

•   Dashboard character separator

•   Search character minimum

•       Return E-Mail address for dunning

Preferences  applied to a specific Preference set.

•   Collection Business Level

•   Open credit aging default on Aging tab

•   Exchange rate for currency conversion

•   Default dunning send method

•       Default dunning contact name

Collector setup needs Resources, jobs and roles need to be set up in Human Resources prior to this activity & is used for:

•   Determining work assignment on the Collections Dashboard

•   Assigning collector name to a customer on Profile tab of Customer Work Area

•   Collector name used in Closure section of dunning correspondence

If a collector leaves the organization, all customers assigned to that collector need to be manually reassigned to a new collector via the Profile tab on the Customer Work Area

Dunning configuration : Correspondence can be sent in the form of emails, faxes or hard copies using either an aged or staged dunning methodology

•   Used for sending dunning notifications to delinquent customers

•   Notifications can be sent via Mail, E-Mail or Fax

•   Aged and Staged Dunning is supported

•   Uses the Send Dunning Letter process to execute and send correspondence

•   Dunning letters templates are stored in the Business Intelligence Publisher (BIP) server

Below are Duties & Associated Tasks that are required to setup collections

This article provided overview of collection setup overview,in following article we will discuss Fusion Collections process in more detail.

Add comment