Presentation on theme: "NCOAUG Training Day Advanced Collections"— Presentation transcript:
1 NCOAUG Training Day Advanced Collections James.Ross@Cambridge-NA.com August 15, 2008I would like to welcome everyone today. Today we will review the Oracle 11i Advanced Collection Module features and setup.
2 Advanced Collections Overview Collections agents and their managers can use Oracle Collections to:Identify delinquent customersObtain a snapshot of the customer’s past payment historyReview a customer’s aging dataView key customer collections metricsTrack each delinquency as it moves through the collections lifecycleSupport standard methods of payments that will quickly resolve the delinquent situationCalculate collections scores for customersPlan and execute collections strategies to automate as much of the collectionsmanagement process as possiblePlan and execute collections dunning plans to automatically send dunning noticesand optionally, schedule dunning callbacksAttach notes to a customer’s recordsCreate tasksWhat is Advanced Collections… What can it do for me? Through the utilization of the Advanced Collection module, you will be enabled to;Quickly delinquent customers by the worst offender to the least offender based on defined rules.Review payment historyReview agingView Collection MetricsTrack DelinquenciesCalculate collection scoresDunning noticesScheduling Callbacks and Follow-ups Tasks
3 Advanced Collections Key Features Delinquency, Broken Promise, and Strategy Actions Nodes on the Collector’s Work QueueCollections HeaderOperational Data ViewsProfile Tab with Metrics TablesDetailed Collections HistoriesAutomated Collections Scoring and Strategies ManagementDunning PlansAging InformationPayment ProcessingPromise to PayDispute HandlingAdjustment ProcessingPayment ReversalsCollections CorrespondenceShared NotesCreating and Managing TasksAttachmentsCustomizable TabsCollections Lifecycle ManagementCase Management for Delinquent Leasing ContractsManage Delinquent LoansContracts InformationeBusiness Center to support CollectionsThere are a number of key features within the Advanced Collections Module;Have automated collection scoring and strategy managementRecord promise to pay commitments and report on broken promises to identify them right awaySend Dunning lettersProcess payments and adjustmentsHandling of Disputes within the moduleCreating notes and follow-up talks
4 Universal Work QueueAdvanced Collections utilizes the Universal Work Queue. As a collection agent, you are able to view;Delinquent CustomersCustomers who have broken promisesTasks that have been created and assigned to you as the collector for that account
5 Universal Work Queue Cont’ The Universal Work Queue (UWQ) is the source for getting work.In the left pane, you can view Active, Complete or Pending Delinquent Accounts, Broken Promises Tasks owned by the collector that is logged into the system.In the right pane, you can view customers and drilldown on each customer line. The UWQ columns can be moved and sorted by any one column. Changes can be saved per collector preferences.The Universal Work Queue allows for the columns in the right hand pane to be re-ordered, and sorted (on any one field).You can also export the contents and load into Excel for additional or more advanced filtering and sorting.Additionally, you can double click on any line and drilldown to the Advanced Collections form with that account queried.Double click on any line to drilldown and open the Advanced Collections forms.
6 Collections Form Collection Record Header Collection Record Detail This is a view of the Collection form. It is the main form in the Advanced Collection module. As with other Oracle modules, there is a header section and detail section. Here you will find various details about your customer such as;Contact InformationLength of time as a customerNumber of delinquenciesAmount overdueLast payment metricsNow we’ll review the tabs in the collection record detail section.
8 Profile TabThe Profile tab is the first tab in the Collections Center window and appears on the Collections tab in eBusiness Center. It provides a snapshot of delinquent customers by providing information on invoices and promises based on a rolling 12 month calendar.It provides information about the last payment made by the customer and the last customer interaction. The Delinquencies table displays all transactions that have a status of delinquent.The profile tab is simply read-only information regarding your customer, the fields include:Credit rating and other metricsPast year installment payment metricsPast year promises metricsIn the lower sections, you can define metrics through setup and assign values and alerts via color coding.
10 History TabUse the History tab to view historic information based on the selected type, such as dunning or adjustments.Collectors have to review and prove "due diligence" for collections calls. Collections agents can see information about previous interactions that occurred with a customer about issues relating to collections activities.On the History tab, you are able to view previous transactions on-the-fly. While contacting this customer, you have the ability to see a quick view of their activity. From here you are able to drill down into specific transaction detail.
12 Accounts TabThe Account tab displays Information about the selected account. Click the Details Button for more information about the selected account.Additionally, the Customer Master is available from this screen.The account tab lists all accounts within a parent company and allows the user to drill down on the accounts.
13 Accounts Tab - Detail Button View Credit InformationView Existing Role Information that was Entered in Oracle ReceivablesBy clicking the detail button on the Accounts tab, the Customer Account Details form will display. Available tabs are;Credit details and payment terms and other related informationRoles – Read only view of contactsClick Cancel to return to the Collections window
14 Accounts Tab - Detail Button Cont’ View Site Info for the CustomerView Account RelationshipsSites – Read only view of sites that are defined for the customerAnd on the Relationships tab, you can view established relationships as defined in the customer master.Click Cancel to return to the Collections window
15 Guidelines for Account Relationships When you create relationships between any customer accounts in Oracle Receivables, you indicate that the relationship is either one-way or reciprocal.When you apply receipts to an invoice in a one-way relationship, the parent account can apply receipts to the invoices in the related account, but receipts in the related account cannot be applied to the parent account's invoices. In other words, the parent can pay for the child but the child cannot pay for the parent in a one-way relationship.When applying invoices to commitments, an account can only apply invoices to commitments that it owns or to commitments of a parent customer account to which it is related. Reciprocal account relationships allow parties to pay each other's debit items and enter invoices against each other's commitments.You can define an unlimited number of customer account relationships.When applying account relationships, you define whether the relationship is one-way or reciprocal.In a one-way relationship – the parent can pay against child invoices, but the child cannot pay against the parent’s invoicesAnd respectively, in a reciprocal relationship both parties can have payments applied to each other’s debit items.
17 Transactions TabIn the Transactions tab select one of the following transaction classes for a selected account and date range:Invoice, Credit memo, Debit memo, Chargeback, Deposit Guarantee,Select a transaction and click Transaction Details.The Transaction Details window displays the line items for the transaction.If you want to send a copy of the transaction to the customer, then click Send Copy.In the transactions tab the customer’s transaction are available. Results may be filtered on Invoice, Credit or Debit Memo, Chargeback Etc. From the transaction tab, payments can be processed, adjustments can be entered and other actions like disputes
18 Disputes – Transaction Tab Debtors often refuse to pay invoices because they do not believe they owe money for a variety of reasons. Use this procedure to submit a dispute against an invoice (whether or not it is delinquent). Once created, a dispute is sent to Oracle Receivables via the Credit Memo Workflow for review and resolution.In the Transactions tab, select the invoice and click Transaction Details.If the customer is disputing a specific invoice line item, then perform the following steps:Select Specific Invoice Lines from the Dispute Section LOV.Select the line item.Enter the dispute amount or dispute quantity for the line. If the invoice has no line items, then the line-item related dispute fields are not accessible.The application calculates the dispute amount if you enter a dispute quantity. The dispute amounts are totaled in the Dispute Total field.NextDisputes can be entered sent via the credit memo workflow for review and resolution.
19 Disputes – Transaction Tab Cont’ If the customer wants to dispute a section of the invoice, then use the LOV in the Dispute Section field to select one of the following:Lines subtotalShippingTaxTotalThe total amount for the selected section appears in the Dispute Totals field. Earlier disputes are not included in the total.If the customer's dispute is over an expected discount, enter the discount amount.The amount is calculated using the entered percent against the invoice total prior to shipping and tax.Select a dispute reason.Optionally, enter a note.Click Dispute.Customers can dispute just a section of the invoice such as lines, shipping, tax or totals
20 Disputes – Transaction Tab Cont’ A dispute confirmation message containing a dispute number appears and can be used as a reference between customer and collector.Confirmation of the dispute is sent automatically if the necessary profiles are set and a default One-to-One Fulfillment template is defined.The dispute creates a Credit Memo Request in Oracle Receivables.While invoices are in dispute they are no longer labeled as delinquent. Disputed transactions are recorded in Interaction History, including the transaction number, class, type, date, status, amount, remaining amount, customer name, and organization.While invoices are in dispute they are not considered delinquent.
22 Lifecycle TabThe Lifecycle tab provides a view of all of a customer's delinquencies. Complicated delinquencies can involve placing customers on credit or service hold (used only with Lease Management), bringing suit to get payment, repossessing and reselling assets to cure delinquencies, write off of assets, or customer bankruptcy. The Lifecycle Tab, in conjunction with various HTML interfaces used by collections specialists and managers, supports these latter stage delinquency processes.The lifecycle tab is used by the Lease Management Module is out of scope for this presentation.
24 Aging Tab Cont’You can view your customer's outstanding account balances on the Aging tab in Collections.
25 Aging TabYou can view your customer's outstanding account balances on the Aging tab in Collections. The Aging tab opens using the default aging bucket defined when you set up Collections, but you can view account balances using any aging bucket defined in Oracle Receivables. You can modify your display by specifying an aging bucket or by choosing to summarize open credits.Collections calculates and displays the total outstanding amounts for the current data level view, which can be by customer, bill to, or account. Aging per individual delinquency is not available.You can view finance charges, approved and pending adjustments, and amounts in dispute.You can view the amount of receipts at risk.If you select to summarize open credits, you can view credits not aged for unapplied cash, on account cash, on account credits, cash claims, and prepayments.Select the Transaction button to view all transactions for an aging bucket line. From there you can select a transaction and view transaction details, process payments, or enter a dispute.
27 Notes Tab Collectors can enter notes in the following situations: Performing any interaction on a delinquencyProcessing a paymentRecording a promise to payProcessing a disputeReversing a paymentRecording delinquency informationRecording later stage delinquency information such bankruptcy, litigation, write-off, repossession.Reviewing casesCompleting a customer interactionRecording information related to a taskCollectors can enter notes in the following situations:Processing a paymentRecording a promise to payProcessing a disputeReversing a paymentRecording delinquency informationReviewing casesCompleting a customer interactionRecording information related to a task
29 Task Tab Use the Task tab to enter tasks for follow-up Tasks for Collectors are available in the Universal Work Queue.Use the task tab to enter tasks for follow-upTasks for Collectors are available in the Universal Work Queue
30 So How Do You Set Up Oracle Advanced Collections?
31 Dunning Letters Strategies Setup OptionsDunning LettersVery simple to set upUse as a starting pointBecome familiar with the processRealize benefits fasterAdjust your own proceduresIdentify where strategies would benefitStrategiesHandle a variety of collection effortsTailor strategies for sets of customersDevelop different tasks for each strategyAssign customers to strategiesMore lead time to implementHandles very complex collectionsVery simple to set upRealize benefits fasterIdentify where strategies would benefitTailor strategies for sets of customersDevelop different tasks for each strategy
33 Implementation Steps for Dunning Letter Plan Setup New ResponsibilitiesAssign Profiles to new responsibilities for MO and SOBAssign Responsibilities to usersSetup Party Relations TypesSetup Relationship TypesSetup AR CollectorsEnable AR Summary TablesDefine Resource Hierarchy GroupAssign Roles and Resource GroupsNote: Territory Management Setup is not required since AC no longer uses that featureAssign Collector to the Customer / Site ProfileSetup the Profiles for Universal Work QueueSetup Task TypesMap Task TypesSetup the Scoring EngineSetup Scoring ComponentsAssign JTF Admin Rights to AdministratorsCreate Fulfillment Engine Dunning LettersCreate a Dunning PlanSetup New ResponsibilitiesAssign Profiles to new responsibilities for MO and SOBAssign Responsibilities to usersSetup Party Relations TypesSetup Relationship TypesSetup AR CollectorsEnable AR Summary TablesDefine Resource Hierarchy GroupAssign Roles and Resource GroupsNote: Territory Management Setup is not required since AC no longer uses that featureAssign Collector to the Customer / Site ProfileSetup the Profiles for Universal Work QueueSetup Task TypesMap Task TypesSetup the Scoring EngineSetup Scoring ComponentsAssign JTF Admin Rights to AdministratorsCreate Fulfillment Engine Dunning LettersCreate a Dunning Plan
34 Setup New Responsibilities Collections AgentForms AdministratorHTML AdministratorHTML ManagerNeed all four for each operating unitSetup New ResponsibilitiesCollections AgentForms AdministratorHTML AdministratorHTML Manager
35 Assign Profiles to new responsibilities for MO and SOB Set MO: Operating UnitSet GL Set of Books NameAssign Profiles to new responsibilities forMulti Org Operating UnitsSet of Books
36 Assign Responsibilities to users Query each User NameFill in Person who is the CollectorAssign the proper responsibilityAssign Responsibilities to usersQuery each User NameFill in Person who is the CollectorAssign the proper responsibility
37 Setup Party Relations Types CollectionsCollections OfDunningDunnings OfSetup Party Relations TypesCollectionsCollections OfDunningDunnings Of
38 Setup Relationship Types Trading Community ManagerAdministrationRelationshipsVersionSetup Relationship Types
39 Setup AR CollectorsEmployee Name matches the Person in the User ScreenSetup AR Collectors
40 Enable AR Summary Tables Set the AR: Allow Summary Table Refresh profile option to Yes.Run the Refresh AR Transactions Summary TablesEnable AR Summary TablesSet the AR: Allow Summary Table Refresh profile option to Yes.Run the Refresh AR Transactions Summary Tables
41 Define Resource Hierarchy Group “Used in” Tab must include “Collections”Define Resource Hierarchy Group“Used in” Tab must include “Collections”
42 Assign Roles and Resource Groups Role Type = CollectionsRole = Role for that personFor the Group, assign the role to that group for that collectorAssign Roles and Resource GroupsRole Type = CollectionsRole = Role for that personFor the Group, assign the role to that group for that collector
43 Assign Collector to the Customer / Site Profile Customer LevelOnly one Org ORSame collector across all orgsSite LevelDifferent collector depending on orgAssign Collector to the Customer / Site ProfileCustomer LevelSite Level
44 Setup the Profiles for Universal Work Queue Queues DisplayedCustomer DelinquenciesCustomer PromisesBroken Promises: CustomerMy TasksQueue OrderState 1 – 4 the order you want to see the queues displayedSetup the Profiles for Universal Work Queue
47 Setup Scoring Engine Decide what level to score at Customer (Party) Account (Customer)Bill-toCopy the seeded scoring engine to your own nameExample: Click “Copy” next to “Sample Delinquent Account Scoring Engine”Scores will be assessed at the Customer Account levelSetup Scoring EngineDecide what level to score atCustomer (Party)Account (Customer)Bill-toCopy the seeded scoring engine to your own nameExample: Click “Copy” next to “Sample Delinquent Account Scoring Engine”Scores will be assessed at the Customer Account level
48 Setup Scoring Engine - Continued Enter Score NameEnter Score DescriptionSet Enabled Flag to YesYou are now ready to add Score ComponentsClick the Score Components ButtonSetup Scoring Engine – ContinuedEnter Score NameEnter Score DescriptionSet Enabled Flag to YesYou are now ready to add Score Components
49 Setup Scoring Components ConceptsScoring Components are those attributes that you determine are important factors for rating how your customer is performingSample components areBucket NumberTotal dollar value of delinquenciesTotal number of delinquenciesLength of time a customer has been a customerAssign value 1 – 100 to each component value (e.g. 0 - $10,000 = 100 (Best))Assign a rating (.1 - 1) for each componentScoring resultsEach customer will receive a score of 1 to 100 (100 being good) based on the above components and ratings assigned to each component – Example follows….Setup Scoring Components. Components are:Bucket NumberTotal dollar value of delinquenciesTotal number of delinquenciesLength of time a customer has been a customerAssign value 1 – 100 to each component value (e.g. 0 - $10,000 = 100 (Best))Assign a rating (.1 - 1) for each component
50 Setup Scoring Components – continued – List of Seeded Components AccountAccount Aging Bucket Line for AccountAccount SinceAmount Overdue to Delinquency Threshold (Ratio of loan amount overdue relative to delinquency limit)Amount of Delinquencies for AccountNumber of Delinquencies for AccountBill-ToAmount of Delinquencies for Bill ToBill To Aging Bucket LineCustomer Since for Bill ToNumber of Delinquencies for Bill ToPartyCustomer Since for PartyNumber of Delinquencies for PartyParty Aging Bucket LineAmount of Delinquencies for Party
51 Setup Scoring Engine - Continued Pick the Score Components you want to useWeight their importance to the overall scoreFor example:Amount of delinquency is most importantAging Bucket is almost as importantThe number of delinquencies is a factor but not nearly as importantClick on “Detail” for each component
52 Setup Scoring Engine - Continued Establish a Low and High range of valuesAssign a value of 1 to 100 for each range (100 being Best)Must have 100 and 1For example:These are dollar amounts for total delinquent amountsAmount <= 0 are Best (100)Amounts over $1M are Worst (1)Repeat for each component
53 Assign JTF Admin Rights to Administrators Sign on to CRM HTML Administration -> Users ->User Maintenance to assign JTF Roles to your administratorsJTF_FM_ADMINJTF_SYSTEM_ADMIN_ROLEAssign JTF Admin Rights to Administrators
55 Create a Dunning Plan For each Aging Bucket Line Enter the Score Range Low and HighIndicate if there should be a callback and, if so, how many days to waitEnter Delivery method and the Correspondent templateCreate a Dunning Plan for each Aging Bucket LineEnter the Score Range Low and HighIndicate if there should be a callback and, if so, how many days to waitEnter Delivery method and the Correspondent template
56 Disable StrategiesSince this example is implementing Dunning Letters, you MUST:Set Strategy Disabled to YesAssign a default strategy resourceSince this example is implementing Dunning Letters, you MUST:Set Strategy Disabled to YesAssign a default strategy resource
58 Oracle Collections Concurrent Request Set Determines which invoices are delinquentDetermines the score for the Customer (Party), Account Customer) or Bill-to associated with the delinquenciesDetermines if there are broken promisesOracle Collections Concurrent Request SetCan be run as frequently as you process payments and invoicesRecommendation: Run once a week