Collections Features for Receivables
- Collector's Work Queue
- Search tool
- Collections header and tabs
- Profile with preconfigured metrics
- History
- Account
- Transactions
- Aging
- Notes
- Tasks
- Assign collectors using the Receivables Collector field
- View collections information by customer, account, bill to, or delinquency data levels
- Process payments
- Create promises
- Enter disputes and adjustments
- View invoices using Oracle Bill Presentment Architecture
- Run Receivables and Collections reports
- Pre-configured delinquency creation engine
- Pre-configured customer scoring engine
- Confirgurable dunning tool including correspondence and callbacks
Oracle Advanced Collections Features
Oracle Advanced Collections provides the functionality listed above plus the following
features:
- Configurable scoring
- Configurable strategies and work items
- Configurable segments (database views for use with scoring and strategies)
- Create collections territories using Territory Manager
- Work reassignment
- Additional Advanced Collections tabs:
- Strategy
- Lifecycle
- Custom 1
- Custom 2
- Tabs available with additional licensing:
- If you use Oracle Loans - Loans
- If you use Oracle Lease Management - Case Management.
- If you use Oracle Contracts - Contracts.
What did Release 12 bring?
Release 12 obsoletes the legacy collections workbench and the enhanced functionality required for:
- Providing Collectors with accurate and complete data about transactions and delinquencies
- Prioritizing the Collectors workload by targeting high dollar, highly delinquent customers and transactions
- Pushing tasks to the collections agent is the new paradigm in Release 12.
Release 12 Advanced Collections provides the following features:
- Integrated Collections Flow
- Work Prioritization using Universal Work Queue
- Simpler access to transaction entry like electronic payment processing, Promise to Pay
- Better monitoring of collections delinquencies, broken promises etc.
- Provides two broad implementation options for customers to select from. Each providing better ways of managing collections activities.
The module Oracle Advanced Collections uses is called Universal Work Queue, the actual product name. However, the developers renamed it on the Navigator where it appears as Collectors Work Queue, which makes more sense to a collections agent. Within this curriculum, for
implementation/setup purposes it is called Universal Work Queue.
But for end-user/navigation purposes it is called Collectors Work Queue.
Key Features:
- Collector work Queue
- Collections Header
- Customer Data Views
- Profile and Metrics
- History Tab
- Aging Tab
- Strategies
- Notes
- Scoring and Segmenting
Setups:
Step 1 – Create Responsibility
Step 2 – Assign Responsibility Profile options
Step 3 – Set up Employees
Step 4 – Assign Users to Responsibilities
Step 5 – Assign Resource Roles and Used In
Step 6 – Import Resources
Step 7 – Create Collectors
Step 8 – Set up Level for Dunning
Step 9 – Set-up Scoring Component
Step 10 –Setup Scoring Engine
Step 11 – Create Work Item Template
Step 12 – Create Collection Strategies
Step 13 – Concurrent Programs - Create delinquencies
Step 14 – Set up Profile Options Universal Work Queue
Step 15 – IEX: Enable the AR transactions summary tables
The following responsibilities control access to functionality based on the role a user has in your company’s collections process:
Collections Agent:
•Allows collectors access the Collections application to perform tasks related to managing delinquencies and interacting with customers.
Collections Forms Administrator:•Allows managers to run concurrent programs, set profile options, and set up Oracle Foundation and Oracle Sales functionality.
Collections HTML Manager:
•Allows managers access to strategies and dunning, plus later stage collections activities such as write-offs and bankruptcies. Managers also create dunning plans, scoring engines, and strategy and work item templates.
Collections HTML Administrator:•Sets up Web Assistance and uses SQL queries to create new scoring components, fulfillment queries, and scoring or strategy filters.
Oracle Advanced Collections uses three types of collections management strategies:
1. Collections dunning plans defined in the Collections Dunning Plan module and executed through Oracle XML Publisher and Oracle Collectors Work Queue.
2. Collections strategies driven through the Collections Strategies module and related collections work items that appear in the Collectors Work Queue.
3. Collections campaigns driven through Oracle Marketing Online and optionally Advanced Inbound, and Advanced Outbound.
Manager logs in as Collections Administrator
- Select Setup Checklist > Collections Method > Dunning Plans
- Add details including dunning correspondence templates and delivery method
Collectors logs in as Collections Agent > History tab > Correspondence to see dunning history > Resend Dunning button to resend
- Dunning callbacks are automatically posted to Collector's Work Queue
One must run the following concurrent programs in Oracle Advanced Collections to execute dunning plans:
• IEX: Promise Reconciliation : This program updates the open promise information in Advanced Collections with payments received in Oracle Receivables to determine outstanding items.
• IEX: Scoring Engine Harness: We can select up to five scoring engines to run at the same time. The scoring harness assigns a value to an object such as a customer, account, or bill to location. Another score determines whether transactions are delinquent, pre-delinquent, or current. At a minimum, we must run a scoring engine that scores transactions to create delinquencies; and then run a scoring engine to score the level of our dunning plan (customer, account, or bill to location).
• IEX: Send Dunnings for delinquent customers: This program sends the results of the scoring engine harness to Oracle One-to-One Fulfillment to send out dunning Correspondence.
• IEX: Create Dunning and Broken Promise Call Backs: If we have dunning callbacks as part of our dunning plan, need to run this program to create callback work items to a collector's task list in the Collector's Work Queue.
IEX uses MOAC security so most IEX
settings are global and at site level. Transaction security is then handled by
MOAC using security profiles
What is Scoring Engine?
- For each scenario we will be having a score Engine. Each engine is consists of many score components.
- Oracle Advanced Collections has eight pre-configured scoring engines. You cannot delete or change these scoring engines. You can copy existing scoring engines and modify them, or create new ones.
- Advanced Collections uses scores to determine the delinquency status of each transaction and to determine the relative value of customers. Strategies and dunning plans then use the customer value score to execute appropriate actions for delinquency or pre-delinquency situations.
- If a score result is not within the score range of a scoring engine, then the Out of Range Rule tells Advanced Collections how to convert the score to be within the defined range.
Score Components:
Many queries together find out the final score. Each score component will be attached to one query. Many such components together are responsible to find out total score for a particular scenario.
Each component will be assigned to certain weight. Different high and low value range will be defined for each component and each range will have certain value. The final score that we will get is product of value that we will get from query and weight.
Collector’s Workbench :
The Collector’s Workbench provides a 360o view of the customer information as related to collections. The workbench provides seamless integration to e-Business Center for Collector’s to change customer, address and Contact information. When a Collector is setup with a Sales role and assigned the required permissions, double clicking on the Organization Name field takes the user to the e-Business Center.
The Customer’s Collection status, Score as determined by the Collection strategy and scoring engine as well as the overall customer exposure is shown in this screen. By the setting Profile Options, the default tab which opens with the Collector’s workbench can be set. In the next few sections, some salient features of the Collector’s workbench are discussed. Collector’s workbench and the Profiles tab
Migration of AR collections Functionality into Advanced Collections:
1. Collections Workbench in AR will be obsolete and replaced with like functionality in Oracle Advanced Collections.
2. Visibility to workbench data is migrated to advanced collections. Basic Collections functionality will be available to customers already licensing Oracle Receivables.
3. Oracle will provide migration scripts to Oracle receivables customer moving to Oracle Advanced Collections.
Weight: Weight assigns the relative importance of each component in a scoring engine. The total weight of all scoring components in a scoring engine must = 1.0. Using weights is optional.
Delinquency: Delinquency means condition of a debt when overdue. The customers who do not pay on time are called delinquent customer.
Strategy: Used for applying specific debt management business rules for collection.
Aging Bucket: Different Aging Bucket can be defined in Receivables depending upon number of days. E.g. Seven days aging bucket. Then all the transaction for which payment is late for 7 days will come to this bucket.
Scoring Engines: Scoring Engines determines customer’s delinquency status and customer scoring.
Dunning Letter: Dunning letters are notification or warning letters send to customers if they do not pay on time. Each Aging Bucket will be having a set of Dunning Letters. Depending upon the Aging Bucket the customer falls dunning letters are sent.
Score: Every delinquent customer is assigned to a value called score. Score is calculated depending upon many factors like debt amount, debt duration etc.
Competency: Competence is a standardized requirement for an individual to properly perform a specific job. Job wise competency is defined in system and assign to particular person who can do that job. E.g. Calling Customer a competency. Some people who are enough skillful to call and convince customer is assigned to this competency.
Benefits:
- Improve navigation and visibility to delinquent customer.
- Automated collections management processes.
- Improved SOX Compliance.
Dependencies and interactions:
XML:
-Configure corresponding used for dunning and other letters.
Concurrent Processes:
-Scoring Program.
-Dunning Program.
-Correspondence and call back.
-Workflow Back ground Process.
-Reconciliation.
Before you begin implementing Advanced Collections, you must make certain business decisions about your collections process. The decisions you make will affect the choices you make in the Questionnaire and Checklist. Learn more about the following areas before you begin:
- Operational data levels
- Scoring
- Strategies and Using Dunning Plans
- Correspondence
DSO Calculated for Advanced Collections:
A code change was made to make the Days Sales
Outstanding(DSO) in the Advanced Collections header match the DSO in Accounts
Receivable(AR) Account Details and the Conventional DSO found in the metrics
listed in the Profile tab? In an effort to improve the performance of
the Collections Agent form (IEXRCALL), the code change includes a new profile
IEX: Show DSO in Header.
You may set this profile to Yes if you
would like the DSO to appear in Advanced Collections, or if you are not using
the DSO and would like improved performance of the form, you may set the
profile to NO.
To set the profile for your User:
1) Login to Collections Agent
2) Navigate to Collections Agent/Collections.
3) Go to Edit>Preferences on the Menu bar at the top and query IEX:
Show DSO in Header in the profile name field
4) In the user value provide Yes and save it.
When you query for a customer and you will see the DSO calculated and it will
match the metric Conventional DSO value.
DSO Formula:
DSO = (total outstanding receivables/total sales for last DSO days) * (DSO
Days)
Note: If Total Sales for DSO days is null or zero, then one(1) is
substituted in the calculation.
This feature can be obtained for 11i via Patch 8984817. Be sure to review the Readme before
considering any patch application. This feature is automatically included
in Release 12.
Oracle Advanced Collections Module Integration:
Oracle Receivables
:
•To identify delinquent customers,
•Adjust transactions,
•Support posting payments, and resolve disputes
Oracle HRMS:
•Creating employees,
•Locations, and
•Organizations (required).
Oracle XML Publisher:
•To send dunning notices, invoice copies and other correspondence,
via e-mail, fax or print (optional).
•Existing Collections customers who are using Oracle 1-to-1 Fulfillment may migrate to XML Publisher.
Oracle iReceivables:
•Self-service access to invoices, payments and disputes.
Oracle Payments:
•Credit card and bank EFT authorization and validation to take payments over the phone (optional) and for Leasing Management real-time payment processing (required).
Oracle Trade Management
:•Access to invoices and payments relating to trade marketing promotions (optional).
Oracle Lease Management
:•Collecting from delinquent lease contracts (optional).
Oracle Bill Presentment Architecture
•To view invoices as they were presented online to the customer (optional).
Oracle Loans :
•Collecting from delinquent loans (optional).
Oracle Applications Foundation Modules:
•Notes for creating, saving and viewing customer notes (required).
•Interaction History for tracking of all customer contacts (required).
•Tasks for to-do’s, call backs, and so on (required).
•Collectors Work Queue (JTF component) for non-media work assignments (required).
•Territory Manager for work assignments based on sales territory qualifiers (optional).
•Resource Manager for defining resources and groups (required).
•Oracle TeleSales eBusiness Center for Customer Management (required).
Oracle Interaction Center Modules (when using Advanced Collections in a call-center):
•Collectors Work Queue (server component) for media-related work assignments (optional).
•Advanced Inbound for automating inbound call handling (optional).
•Advanced Outbound for automating outbound and preview predictive dialing call handling (optional) .
•Oracle Scripting for presenting collections call guides and scripts to support collections activities (optional).
Note:
The AR Collections Workbench was obsoleted in Release 12 and now you will need to use the Oracle Advanced Collections product instead. The basic Collections functionality is available in Oracle Advanced Collections without having to purchase a license for the product. However, if you wish to use the more complex functionality in the Oracle Advanced Collections, you will need the license. Oracle Advanced Collections now also handles the Dunning process instead of AR.
Understanding Payment Processing
in Advanced Collections:
How does profile IEX:
On-Line Credit card Payment Advanced Collections work? How does this
work for ACH, direct debit? You might assume this process is basically the same
in that an authorization code is returned when the ACH, direct debit card
information is submitted during the payment process. Is the correct?
If you have the profile
IEX: On-Line Credit card Payment set to yes, you will get authorization
right away from the payment server when you create a payment in Advanced
Collections. Once you get the authorization code, the credit card has
been accepted. If the card is rejected by the payment server, you will not get
the authorization code.
The Oracle Receivables Receipts API is called to
create the actual receipt by processing the credit card. There is a remittance
process in core Receivables that has to be run so that the receipt will be
created. This is beyond the scope of Advanced Collections as this is a
Receivables process.
Advanced Collections does not have Direct Debit
functionality and does not accept Debit Cards.Furthermore, the processing of credit card and
direct debit transactions through Oracle Payments is not the same. For credit
cards, there has to be first authorization and then settlement whereas for bank
account transfer, there is no authorization step. There is a bank account
verification step for direct debit transaction but that is an optional step.
Automatic Clearing House (ACH) functionality
includes Bank Account Transfers and Direct Debit business case scenarios. In
R12 the Credit Card details are entered for the payment in the applications.
Oracle Payments handle the validation and authorizations subsequently the
remittance process runs in Receivables. However in case of the ACH
functionality, only the Bank Account details are validated and authorization is
an optional step in Oracle Payments. So it seems in case of
ACH the authorization may or may not be triggered, based on the optional
authorization set-up step followed in Oracle Payments.
Reference
3.
Oracle
Advanced Collection Implementation & User Guide
