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Soplex DM FI-CA: Dunning Management for FI-CA
Starting point
Rigid and static processes in debt collection have had their day. Solely relying on sending out dunning letters no
longer proves effective today. A successful, modern dunning management rests on having a dunning strategy with
dynamic and flexible collection procedures. The only thing that companies could so far manage within SAP was the
in-house dunning process with reminders being sent to their customers. The other collection procedures common
in dunning management were either managed in external systems (such as Winword, law office software …) or
outsourced to third parties.
The focus of modern dunning management is on managing all stages of the dunning process within SAP.
This helps companies to streamline their processes and to cut the cost of collecting their open items.
Challenge
Follow-up processes, e.g. telephone collection or payment plan agreements, are managed outside SAP (in most
cases in Microsoft Excel). The lack of integration into SAP results in considerable manual effort, inefficient
collection processes and a lack of transparency since there are no options for running aging reports or reports on
the collection status in SAP. This, in turn, leads to a higher DSO (Days Sales Outstanding) and increased cost of
cash collection. As a result, you have a higher amount of receivables that need adjusting or, at the worst, you will
have to write off the debt altogether.