Receivables management in SAP ERP is getting a new look. But what is changing, and what kinds of effects will these changes have?
I recently moderated a Q&A with one of our Financials 2013 speakers, Moussa Soukal of Hanse Orga, who took questions on the implications of the latest A/R processing and receivables management in SAP, covering topics such as recent trends in receivables management, options for reporting, mobility's impact on A/R, and more.
You can read the full text of the Q&A in Insider Learning Network's Financials Forum, or read our edited transcript here.You can also catch Moussa and his colleagues at the Financials 2013 event in Amsterdam.
Allison Martin, Moderator: Thank you for joining us for today's Q&A with Moussa Soukal of Hanse Orga International in the Financials Forum.
Moussa is Managing Director of Hanse Orga International Corp., the international subsidiary of the German financial software specialist Hanse Orga AG. Moussa is also presenting sessions at our upcoming SAPinsider Financials 2013 conference next week.
Welcome, Moussa, and thanks for joining us!
Moussa Soukal, Hanse Orga: Hello, everyone. Thanks for having me.
Allison Martin: Moussa, while folks join us and begin to post questions, I wanted to ask a broad question:
I hear that SAP is updating standard A/R processing, and asking customers to take a second look at those ERP modules. What SAP changes - and broader trends - do you point to when you talk to Finance teams about updating receivables management?
Moussa Soukal: Allison, thank you for your question.
SAP is revamping its standard A/R processing to include better post-processing for cash application, better integration with BI, and better integration for Credit Management & Dispute.
Broader trends are:
- Moving from checks to ACH/Wires
- Streamline process for reconciling remittance data and checks/ACH with open invoices
- Better handling of exceptions
- More integration between Credit Management and Cash Accounting
- Better A/R Dashboards
- Mobile strategy
MichaelHamalak: What options are there other than BI for doing A/R reporting and pushing reports to outside agents?
Moussa Soukal: Michael, thank you for the question.
There are several options outside of BI which provide reporting.
- SAP Credit & Collection Management provides Dunning reports, Aging Reports, Disputes & Claims reporting.
- SAP standard provides limited A/R Reporting.
- SAP Certified Partners offer enhanced reporting capabilities in Cash Application, Deduction Management and Clarification workflow.
Pushing reports to outside agents:
- This can be achieved by emails and/or Web-based platform.
Dave Hannon: Moussa, thanks for taking our questions today. I'm curious about your view on mobility's impact in A/R specifically? What kind of solutions are out there now that you'd highlight and what mobile A/R functionality is coming down the road that you think SAP users should be aware of?
Moussa Soukal: Regarding mobility's impact on A/R Management, I would like to highlight the following:
- As A/R becomes more mobile, this will help the sales force to better know and service their customers, by being able to access mobile apps and dashboards to get a clear picture of their current relationship with their customers. The A/R Information could then reach the mobile Sales force to help them to address their customers' issues and requests.
- The Sales force will become an extension of the A/R Team to help them resolve claims, deductions and other technicalities that previously presented roadblocks to the cash application teams.
- SAP Mobile Apps for A/R Management Analytics.
- Certified SAP Partner solution to enhance A/R Management, such as Cash application, that would feed the A/R Management Analytics mobile apps
Heather Black: Hi Moussa,
DSO is always an issue. Do you see any new A/R developments or any best practices that help optimize DSO?
Moussa Soukal: Hi Heather,
Thank you for your question.
Absolutely, ultimately DSO is driven by:
- Cash application
- Credit and risk
- Customer paying methods and incentives
Best practices can be industry-driven with a few general practices focused on customer satisfaction, incorporation of tools into increased hit rates, providing management tools to better handle workflows and resource deployment.
kerrydunn: Hi Moussa:
Limited SAP standard reporting is disappointing.
Is there any functionality considered in the management and reporting of Bad Debt, which can be a source of easy profits?
Also, what is DSO please?
Moussa Soukal: Thank you Kerry.
Any time an invoice is issued for goods shipped, you are basically agreeing to a lending relationship with your customer. The ability to expedite the posting of monies to your customer account, and ultimately to clear the outstanding invoices, will enable your Credit Department to have up-to-date information to pursue outstanding invoices and overdue balances.
The point being, the quicker you can collect on proper overdue balances or disputes, your ability to collect the owed money increases. The longer you wait for the cash application group to post, the chance you have to collect decreases exponentially.
DSO is Days Sales Outstanding. Days Sales Outstanding is calculated as:
janetrundquist: We're looking at FSCM. Tell me more about Biller Direct. Can a customer enter via a portal, see their line items in FBL5N, click and then pay by credit card?
Moussa Soukal: Hello Jane,
Yes, a customer can pay by credit card.
If you refer to the SAP Biller Direct - Technical Overview page, towards the bottom of the document, there is a section, BANK and CREDIT CARD DATA that provides the information you are looking for.
Allison Martin: Thanks to all who posted questions and followed the discussion! A full summary of all the questions will be available here in the Financials Forum soon.
I also invite you to attend Moussa's sessions and meet him in person at Financials 2013 in Amsterdam. For more details, simply visit the Financials 2013 conference website. We hope to see you there, or at our upcoming conferences in Singapore and the US.
Finally, thank you again to Hanse Orga's Moussa Soukal for taking some time to join us today.
Moussa, I'm looking forward to seeing you next week in Amsterdam!
Moussa Soukal: Thank you for participating in our forum. I am sorry we are out of time.
If you have any further questions or would like additional information about our product offerings, please feel free to contact me.
Managing Director of North America, Hanse Orga
Office: +1 734 302 3000 Email: firstname.lastname@example.org