NCOAUG Training Day Advanced Collections James.RossCambridgeNA.com

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NCOAUG Training DayAdvanced CollectionsJames.R
oss_at_Cambridge-NA.com

• August 15, 2008

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Advanced Collections Overview

• Collections agents and their managers can use
  Oracle Collections to
• Identify delinquent customers
• Obtain a snapshot of the customers past payment
  history
• Review a customers 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 customers records
• Create tasks

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Advanced Collections Key Features
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Universal Work Queue
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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.

• Double click on any line to drilldown and open
  the Advanced Collections forms.

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Collections Form
Collection Record Header
Collection Record Detail
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Oracle Advanced Collections - Profile Tab
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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.

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Oracle Advanced Collections History Tab
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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.

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Oracle Advanced Collections - Accounts Tab
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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.

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Accounts Tab - Detail Button

• View Credit Information

• View Existing Role Information that was Entered
  in Oracle Receivables

• Click Cancel to return to the Collections window

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Accounts Tab - Detail Button Cont

• View Site Info for the Customer

• View Account Relationships

• Click Cancel to return to the Collections window

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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.

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Oracle Advanced Collections - Transaction Tab
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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.

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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

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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.

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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.

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Oracle Advanced Collections - Lifecycle Tab
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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.

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Oracle Advanced Collections - Aging Tab
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Aging Tab Cont
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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.

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Oracle Advanced Collections - Notes Tab
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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

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Oracle Advanced Collections - Task Tab
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Task Tab

• Use the Task tab to enter tasks for follow-up
• Tasks for Collectors are available in the
  Universal Work Queue.

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So How Do You Set UpOracle Advanced Collections?
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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

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Lets cover the Dunning Letter Setup
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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

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Setup New Responsibilities

• Collections Agent
• Forms Administrator
• HTML Administrator
• HTML Manager
• Need all four for each operating unit

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Assign Profiles to new responsibilities for MO
and SOB

• Set MO Operating Unit
• Set GL Set of Books Name

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Assign Responsibilities to users

• Query each User Name
• Fill in Person who is the Collector
• Assign the proper responsibility

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Setup Party Relations Types

• Collections
• Collections Of
• Dunning
• Dunnings Of

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Setup Relationship Types

• Trading Community Manager
• Administration
• Relationships
• 11.5.10.2 Version

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Setup AR Collectors

• Employee Name matches the Person in the User
  Screen

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Enable AR Summary Tables

• Set the AR Allow Summary Table Refresh profile
  option to Yes.
• Run the Refresh AR Transactions Summary Tables

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Define Resource Hierarchy Group

• Used in Tab must include Collections

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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

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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

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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

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Setup Task Types

• CRM Administration

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Map Task Types

• CRM Administration

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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

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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

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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.

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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

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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

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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
• Amounts over 1M are Worst (1)
• Repeat for each component

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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

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Create Fulfillment Engine Dunning Letters
(examples)

• Sign onto One-to-One Fulfillment
• Create Collection Agency Letter Template
• Create Reminder Letter Template

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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

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Disable Strategies

• Since this example is implementing Dunning
  Letters, you MUST
• Set Strategy Disabled to Yes
• Assign a default strategy resource

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Run the Scoring Request Set
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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

Can be run as frequently as you process payments
and invoices Recommendation Run once a week
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Advanced Collections Questions