Oracle Collections

Functional Overview
Day 1 - Foundation
28
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January 2013
Ankush Kapare
Sushant Waghmare
Abhishek Deobhakta
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Integrated Collections Agent
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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
Plan and execute collections dunning plans to automatically send dunning notices
and optionally schedule dunning callbacks
Attach notes to a customers records
Create tasks
Advanced Collections - Overview
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Advanced Collections Key Features
Collections header
Operational data views
Profile tab with metrics tables
Detailed collection histories
Dunning plans
Aging information
Payment processing
Promise to pay
Dispute handling
Adjustment processing
Payment reversal
Collections correspondence
Shared notes
Creating and managing tasks
Attachments
Customizable tabs
Collections lifecycle management
Manage delinquent loans
eBusiness center to support collections
Case management for delinquent leasing
contacts
Adjustment collections scoring and
strategies management
Delinquency, broken promise and strategy
action notes on the collectors work queue.
Automated collections scoring and
strategies management.
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Universal Work Queue
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Universal Work Queue
Source for getting work

Left Pane: View Active/Complete/Pending Delinquent accounts, broken promises
owned by a collector

Right Pane: View Customers with an option to drill down on each line

Double clicking on any line will drill down and open the Advanced Collections form

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Collections Workbench
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Profile Tab
Provides a snapshot of
delinquent customers

Provides information based on
invoices and promises based
on a rolling 12 month calendar

Provides information about the
last payment made by the
customer

Generates information about
the last interaction with the
customer.

The delinquencies table section
displays all transactions that
have a status of delinquent
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History Tab
Presents historic information based on the selection.
Collection agents can see information about previous interactions with
a customer
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Accounts tab
Presents information
about the selected
account

Details about more
information for this
account

Customer Master
available from this
screen
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Accounts Tab Detail Button
View site info for customer
View account relationships
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Account Relationships
Creation of relationships between any customer accounts in Oracle
Receivables

Unlimited number of customer account relationships can be defined

Relationship defined as one-way / reciprocal

For example, application of receipts to invoices in a one way
relationship, only the parent account can apply receipts to the
invoices in the related account. Vice versa is not true.
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Transactions tab
Selection of transaction classes like Invoices, Cr/Dr Memo, Chargeback, Deposit, Guarantee

Selection based on account selected and the date range passed

Details of the transaction can be viewed.

Option to send a copy to the customer
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Transactions tab - Disputes
Disputes can be applied to
Lines subtotal
Shipping
Tax
Total

Dispute reasons can be selected from the LOVs

Upon the entry of a dispute, a dispute confirmation message is generated
which consists of a dispute number.

Confirmation of the dispute is sent automatically if the necessary profiles are
set and a default One-to-One Fulfillment template is defined
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Transactions tab Disputes (contd..)
Once a dispute has been entered, a Cr Memo request is created in
Receivables

Delinquent invoices not considered as delinquent, if marked as a
dispute item.

All disputed transactions are recorded in the Interaction history,
including the transaction number, class, type, date, status, amount,
balance, customer name and organization.
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Promise to Pay
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Promise to Pay (contd..)
Enter Promise to Pay through the Payment Processing window.
Two methods of Promise-to-Pay possible:
Mass Promise
Individual Transaction level promise

User required to enter a Promise-to-Pay date and amount.

Optionally a Promise confirmation letter can be defined in the Oracle
BI Publisher.

A promise is considered broken if the Promise to pay date is past.
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Lifecycle Tab
Provides a view of all of
customer delinquencies


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Aging Tab
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Aging Tab
Presents customer outstanding account balances per customer, bill-to or account level.
Defaults to the aging bucket set up in collections.
Can also be used to display the aging buckets created in Oracle Receivables.
Displays the finance charges, approved and pending adjustments and amounts in dispute and
receipts at risk.
Summarization of open credits at on account cash/credit, cash claims, prepayments and credits not
aged for unapplied cash

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Notes Tab
Collectors can enter notes in the following situations:
Performing any interaction in a delinquency and recording the related information such as bankruptcy,
litigation, write off, repossession
Processing a prepayment
Recording a promise to pay
Reversing a payment
Reviewing cases
Completing a customer interaction
Recording information related to a task


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Tasks tab
Tasks available for collectors in the Universal Work Queue

Using this tab to enter tasks for follow-up.
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Used to score a specific object such as a transaction, customer, account or a Bill-
to.
The Scoring Component is simply a Select statement that gathers information
from the Object and reports a score or a numeric value back.
For example, a scoring component for a customer account can be the number of
delinquent transactions. In this case, the Object being scored on is the Customer
Account.
To refresh the scoring tables, it is imperative to run concurrent programs for each
of the object being scored on.
Scoring components created using the Collections Administrator responsibility.

Scoring Components
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Used to score either a customer or delinquency and aids in the selection of an
appropriate Dunning Plan or Collections Strategy.
A scoring engine consists of one or more scoring components each with an
assigned weight.

Let us say the requirement is to score a customer account on three different
components:
Customer Since: where one would want to consider how long the customer
has been doing business with the organization and treat them differently
based on the length of the relationship.
Number of delinquent transactions: where the count of delinquent
transactions is considered in determining the appropriate collection action.
Delinquent amount due: where the amount of delinquent transactions is
considered in determining the collection action.

Scoring Engine
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Scoring Engine: Step 1 Range of Values
Setup of number of delinquent transactions is shown below:

Range Low Range High Value
0 6 100
7 20 50
21 9999999999 1
Setup of Customer Since is shown below:
Range Low Range High Value
-9999999 1950 100
1951 1970 75
1976 1990 50
1991 9999999 1
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Scoring Engine: Step 1 Range of Values
Delinquency Amount for account setup is shown below:


Range Low Range High Value
-9999999 0 100
1 1000 90
1001 5000 80
5001 25000 70
25001 50000 60
50001 75000 50
75001 100000 40
100001 500000 30
500001 1000000 20
1000001 99999999 1
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Scoring Engine: Step 2 Weight Assignment
Scoring Component Weight
Customer since 0.1
No. of delinquent transactions 0.4
Amount due (delinquent amount) 0.5
Scoring is done based on the above scores and weights. Consider the
following customer scenario:
Customer Component Value Value*Weight Component
Score
Total
Customer
Score
XYZ INC 5 Delinquencies 100 100 * 0.4 40
Customer since
1996
1 1 * 0.1 0.1
%55,000
delinquent
amount
50 50 * 0.5 25 65
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Dunning Plans
If a customer transaction is between 61-90 aging bucket, and the score as determined by the
scoring engine is say 85, the Dunning Soft Letter 1 is sent to the customer, through Print.

Since callback is not defined a callback task is not created.

If the Customer score is say, 65 as in the example of ABC Corporation, the Dunning Hard Letter 1 is
sent to the printer and a callback task is created 10 days after the Dunning letter is printed.
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Collection Strategies
Robust method of setting up collections operations
Combines the scoring engine and work items/tasks
Assemblage of automated and manual tasks that will be executed in
sequence to influence the customer in paying the delinquent
invoice(s).
The backbone of Collections Strategy is the work items.
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Work Items
Work Items can be simple tasks such as calling a customer to more
complex activities like triggering a workflow.

Several seeded work items are provided with Oracle Advanced
Collection R12 and more can be added as required.

Work Items can be generally classified into Automatic, Manual or
Workflow. The table in the following section shows the Work Item
type and Category type associated with the work item type.
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Work Items
Work Item Type Category Type Work Item Type
Description
Automatic Email
Print
Fax
Send reminders
and dunning
letters
Manual Personal Visit
Phone Call
Review
Creation of tasks
on the Collectors
workbench
Workflow Workflow A complex
workflow to be
launched in order
to trigger a
process
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With 11i, workbench users could:
Schedule customer call through the Scheduler screen.
Record customer call
View aging by account
View communications (Calls, statements and Dunning Letters)
View Transactions

R12 obsoletes the legacy collections workbench and 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.
Oracle Collections 11i v/s R12
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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.
Oracle Collections 11i v/s R12


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