1. NCOAUG Training Day Advanced Collections James.Ross@Cambridge-NA.com
August 15, 2008
I 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 customers
Obtain a snapshot of the customer’s past payment history
Review a customer’s aging data
View key customer collections metrics
Track each delinquency as it moves through the collections lifecycle
Support standard methods of payments that will quickly resolve the delinquent situation
Calculate collections scores for customers
Plan and execute collections strategies to automate as much of the collections
management process as possible
Plan and execute collections dunning plans to automatically send dunning notices
and optionally, schedule dunning callbacks
Attach notes to a customer’s records
Create tasks
What 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 history
Review aging
View Collection Metrics
Track Delinquencies
Calculate collection scores
Dunning notices
Scheduling Callbacks and Follow-ups Tasks

3. Advanced Collections Key Features
Delinquency, Broken Promise, and Strategy Actions Nodes on the Collector’s Work Queue
Collections Header
Operational Data Views
Profile Tab with Metrics Tables
Detailed Collections Histories
Automated Collections Scoring and Strategies Management
Dunning Plans
Aging Information
Payment Processing
Promise to Pay
Dispute Handling
Adjustment Processing
Payment Reversals
Collections Correspondence
Shared Notes
Creating and Managing Tasks
Attachments
Customizable Tabs
Collections Lifecycle Management
Case Management for Delinquent Leasing Contracts
Manage Delinquent Loans
Contracts Information
eBusiness Center to support Collections
There are a number of key features within the Advanced Collections Module;
Have automated collection scoring and strategy management
Record promise to pay commitments and report on broken promises to identify them right away
Send Dunning letters
Process payments and adjustments
Handling of Disputes within the module
Creating notes and follow-up talks

4. Universal Work Queue
Advanced Collections utilizes the Universal Work Queue. As a collection agent, you are able to view;
Delinquent Customers
Customers who have broken promises
Tasks 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 Information
Length of time as a customer
Number of delinquencies
Amount overdue
Last payment metrics
Now we’ll review the tabs in the collection record detail section.

7. Oracle Advanced Collections - Profile Tab

8. Profile Tab
The 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 metrics
Past year installment payment metrics
Past year promises metrics
In the lower sections, you can define metrics through setup and assign values and alerts via color coding.

9. Oracle Advanced Collections – History Tab

10. History Tab
Use 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.

11. Oracle Advanced Collections - Accounts Tab

12. Accounts Tab
The 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 Information
View Existing Role Information that was Entered in Oracle Receivables
By 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 information
Roles – Read only view of contacts
Click Cancel to return to the Collections window

14. Accounts Tab - Detail Button Cont’
View Site Info for the Customer
View Account Relationships
Sites – Read only view of sites that are defined for the customer
And 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 invoices
And respectively, in a reciprocal relationship both parties can have payments applied to each other’s debit items.

16. Oracle Advanced Collections - Transaction Tab

17. Transactions Tab
In 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.
Next
Disputes 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 subtotal
Shipping
Tax
Total
The 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.

21. Oracle Advanced Collections - Lifecycle Tab

22. Lifecycle Tab
The 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.

23. Oracle Advanced Collections - Aging Tab

24. Aging Tab Cont’
You can view your customer's outstanding account balances on the Aging tab in Collections.

25. Aging Tab
You 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.

26. Oracle Advanced Collections - Notes Tab

27. Notes Tab Collectors can enter notes in the following situations:
Performing any interaction on a delinquency
Processing a payment
Recording a promise to pay
Processing a dispute
Reversing a payment
Recording delinquency information
Recording later stage delinquency information such bankruptcy, litigation, write-off, repossession.
Reviewing cases
Completing a customer interaction
Recording information related to a task
Collectors can enter notes in the following situations:
Processing a payment
Recording a promise to pay
Processing a dispute
Reversing a payment
Recording delinquency information
Reviewing cases
Completing a customer interaction
Recording information related to a task

28. Oracle Advanced Collections - Task Tab

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-up
Tasks for Collectors are available in the Universal Work Queue

30. So How Do You Set Up Oracle Advanced Collections?

31. Dunning Letters Strategies
Setup Options
Dunning Letters
Very simple to set up
Use as a starting point
Become familiar with the process
Realize benefits faster
Adjust your own procedures
Identify where strategies would benefit
Strategies
Handle a variety of collection efforts
Tailor strategies for sets of customers
Develop different tasks for each strategy
Assign customers to strategies
More lead time to implement
Handles very complex collections
Very simple to set up
Realize benefits faster
Identify where strategies would benefit
Tailor strategies for sets of customers
Develop different tasks for each strategy

32. Let’s cover the Dunning Letter Setup

33. Implementation Steps for Dunning Letter Plan
Setup New Responsibilities
Assign Profiles to new responsibilities for MO and SOB
Assign Responsibilities to users
Setup Party Relations Types
Setup Relationship Types
Setup AR Collectors
Enable AR Summary Tables
Define Resource Hierarchy Group
Assign Roles and Resource Groups
Note: Territory Management Setup is not required since AC no longer uses that feature
Assign Collector to the Customer / Site Profile
Setup the Profiles for Universal Work Queue
Setup Task Types
Map Task Types
Setup the Scoring Engine
Setup Scoring Components
Assign JTF Admin Rights to Administrators
Create Fulfillment Engine Dunning Letters
Create a Dunning Plan
Setup New Responsibilities
Assign Profiles to new responsibilities for MO and SOB
Assign Responsibilities to users
Setup Party Relations Types
Setup Relationship Types
Setup AR Collectors
Enable AR Summary Tables
Define Resource Hierarchy Group
Assign Roles and Resource Groups
Note: Territory Management Setup is not required since AC no longer uses that feature
Assign Collector to the Customer / Site Profile
Setup the Profiles for Universal Work Queue
Setup Task Types
Map Task Types
Setup the Scoring Engine
Setup Scoring Components
Assign JTF Admin Rights to Administrators
Create Fulfillment Engine Dunning Letters
Create a Dunning Plan

34. Setup New Responsibilities
Collections Agent
Forms Administrator
HTML Administrator
HTML Manager
Need all four for each operating unit
Setup New Responsibilities
Collections Agent
Forms Administrator
HTML Administrator
HTML Manager

35. Assign Profiles to new responsibilities for MO and SOB
Set MO: Operating Unit
Set GL Set of Books Name
Assign Profiles to new responsibilities for
Multi Org Operating Units
Set of Books

36. Assign Responsibilities to users
Query each User Name
Fill in Person who is the Collector
Assign the proper responsibility
Assign Responsibilities to users
Query each User Name
Fill in Person who is the Collector
Assign the proper responsibility

37. Setup Party Relations Types
Collections
Collections Of
Dunning
Dunnings Of
Setup Party Relations Types
Collections
Collections Of
Dunning
Dunnings Of

38. Setup Relationship Types
Trading Community Manager
Administration
Relationships
Version
Setup Relationship Types

39. Setup AR Collectors
Employee Name matches the Person in the User Screen
Setup AR Collectors

40. Enable AR Summary Tables
Set the AR: Allow Summary Table Refresh profile option to Yes.
Run the Refresh AR Transactions Summary Tables
Enable AR Summary Tables
Set 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 = Collections
Role = Role for that person
For the Group, assign the role to that group for that collector
Assign Roles and Resource Groups
Role Type = Collections
Role = Role for that person
For the Group, assign the role to that group for that collector

43. Assign Collector to the Customer / Site Profile
Customer Level
Only one Org OR
Same collector across all orgs
Site Level
Different collector depending on org
Assign Collector to the Customer / Site Profile
Customer Level
Site Level

44. Setup the Profiles for Universal Work Queue
Queues Displayed
Customer Delinquencies
Customer Promises
Broken Promises: Customer
My Tasks
Queue Order
State 1 – 4 the order you want to see the queues displayed
Setup the Profiles for Universal Work Queue

45. Setup Task Types CRM Administration Setup Task Types

46. Map Task Types
CRM Administration
Map Task Types
CRM Administration

47. Setup Scoring Engine Decide what level to score at Customer (Party)
Account (Customer)
Bill-to
Copy the seeded scoring engine to your own name
Example: Click “Copy” next to “Sample Delinquent Account Scoring Engine”
Scores will be assessed at the Customer Account level
Setup Scoring Engine
Decide what level to score at
Customer (Party)
Account (Customer)
Bill-to
Copy the seeded scoring engine to your own name
Example: 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 Name
Enter Score Description
Set Enabled Flag to Yes
You are now ready to add Score Components
Click the Score Components Button
Setup Scoring Engine – Continued
Enter Score Name
Enter Score Description
Set Enabled Flag to Yes
You are now ready to add Score Components

49. Setup Scoring Components
Concepts
Scoring Components are those attributes that you determine are important factors for rating how your customer is performing
Sample components are
Bucket Number
Total dollar value of delinquencies
Total number of delinquencies
Length of time a customer has been a customer
Assign value 1 – 100 to each component value (e.g. 0 - $10,000 = 100 (Best))
Assign a rating (.1 - 1) for each component
Scoring results
Each 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 Number
Total dollar value of delinquencies
Total number of delinquencies
Length of time a customer has been a customer
Assign 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
Account
Account Aging Bucket Line for Account
Account Since
Amount Overdue to Delinquency Threshold (Ratio of loan amount overdue relative to delinquency limit)
Amount of Delinquencies for Account
Number of Delinquencies for Account
Bill-To
Amount of Delinquencies for Bill To
Bill To Aging Bucket Line
Customer Since for Bill To
Number of Delinquencies for Bill To
Party
Customer Since for Party
Number of Delinquencies for Party
Party Aging Bucket Line
Amount of Delinquencies for Party

51. Setup Scoring Engine - Continued
Pick the Score Components you want to use
Weight their importance to the overall score
For example:
Amount of delinquency is most important
Aging Bucket is almost as important
The number of delinquencies is a factor but not nearly as important
Click on “Detail” for each component

52. Setup Scoring Engine - Continued
Establish a Low and High range of values
Assign a value of 1 to 100 for each range (100 being Best)
Must have 100 and 1
For example:
These are dollar amounts for total delinquent amounts
Amount <= 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 administrators
JTF_FM_ADMIN
JTF_SYSTEM_ADMIN_ROLE
Assign JTF Admin Rights to Administrators

54. Create Fulfillment Engine Dunning Letters (examples)
Sign onto One-to-One Fulfillment
Create Collection Agency Letter Template
Create Reminder Letter Template
Create Fulfillment Engine Dunning Letters

55. Create a Dunning Plan For each Aging Bucket Line
Enter the Score Range Low and High
Indicate if there should be a callback and, if so, how many days to wait
Enter Delivery method and the Correspondent template
Create a Dunning Plan for each Aging Bucket Line
Enter the Score Range Low and High
Indicate if there should be a callback and, if so, how many days to wait
Enter Delivery method and the Correspondent template

56. Disable Strategies
Since this example is implementing Dunning Letters, you MUST:
Set Strategy Disabled to Yes
Assign a default strategy resource
Since this example is implementing Dunning Letters, you MUST:
Set Strategy Disabled to Yes
Assign a default strategy resource

57. Run the Scoring Request Set

58. Oracle Collections Concurrent Request Set
Determines which invoices are delinquent
Determines the score for the Customer (Party), Account Customer) or Bill-to associated with the delinquencies
Determines if there are broken promises
Oracle Collections Concurrent Request Set
Can be run as frequently as you process payments and invoices
Recommendation: Run once a week

59. Advanced Collections Questions