Financial Supply Chain Management (FSCM) provides an integrated approach to cash management processes. It includes components like collections management, dispute management, credit management, biller direct, in-house cash, and treasury and risk management. These components help with receivables management, dispute resolution, credit checks, customer access to accounts, internal cash flows, and financial planning. FSCM aims to provide better visibility and control over cash-related processes.

1. FSCM
OVERVIEW
Johannes Le Roux
leroux@Jari-consulting.com
Tel: 585 317 9234
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2. 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

3. Introduction
FSCM Components…..
• Collections Management
• Dispute Management
• Credit Management
• Biller Direct
• In-House Cash
• Treasury & Risk Management

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Introduction
Cash flow Cycle
Days In Inventory Days Sales Outstanding
Sales Sales/
Actual
Order delivery/
payment
Placed Invoice
TIME
Purchase Expected
Receipt Actual
Order
/Invoice payment
Payment date
Placed
Days In Receivables
Days In Payables

12. Financial Supply Chain Components
Financial Supply Chain Management
Credit Cash & Liquidity Dispute Collections
Management Management Management Management
Integrated Financial Approach
Financial Collect Settle &
Check Issue Cash Dispute
working Reconcile
Credit Invoice Forecast Resolution Cash Pay
Capital
Treasury & Risk In-House
Management Management
Biller Direct
Electronic Customer Customers Access & create
Integrate customer dispute cases for both partial
service with finance payment
payments or the entire invoice
Suppliers can see all of their Electronic invoicing Customers see all bills and
invoices and status credit notes on Internet .

13. Collections Management
Collection - Receivables Process
• Automatically created
 Establish a customer • Personalization
centric receivables Access Work • Search function
management list • Statistics
• Key figures per work list item
 Evaluate, identify and • Valuation detail
prioritize accounts • Due date grid
Prepare • Invoice overview
Customer • Overview of past payments
 Collect receivables Contacts • Overview of past contacts
proactively
• Overview of resubmissions
 Process optimization • Promises to pay
for high volumes of • Dispute cases
• Resubmissions
open items Contact
Customer • Customer contact

14. 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 Report Send FI-
AR relevant data
to Collection
Last Payment Management Collections
Management
Customer Key Figures Business
Partner Key
Accounts Receivables Mapping

15. Collections Management
Prerequisite for creating a work list….
Elements of the Organizational Structure
• 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’

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

17. 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.

18. Collections Management
Creating a work list….
Aging of receivables
Link to Business
Partner

19. Collections Management
Work list

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

21. Collections Management

22. Collections Management

23. Collections Management

24. 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

25. 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

26. Dispute Management
SAP Dispute Management is integrated in those financial processes of SAP
Financials Accounts Receivable where disputed invoices typically become
visible:
Create Dispute Case
FBL5N

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

28. Dispute Management
Create Dispute Case Display Dispute Case

29. Dispute Management
Dispute Work list

30. Dispute Management
Reason & Status
Amount
Fields
Roles
Customer
Contact
Information
LOGS

31. Dispute Management
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)

32. Dispute Management
Correspondence…….

33. Dispute Management
• 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 customer’s credit exposure
• Reduce amount of bad or doubtful debt
• Collect receivables proactively
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34. 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