Get your invoices paid faster

If you are having trouble getting invoices paid by your customers, you’re not alone. A 2014 research of the European Payment Index (EPI) pointed out that Europe’s construction industry sees only 51% of invoices settled within 30 days. According to a US Bank study by Jessie Hagan, 82% of business failures are due to poor cash management. To prevent this from happening to your business and get your invoices paid faster you need to have a strategy for chasing your customers for payment. Typically, this strategy consists of the following three main elements:

  • The implementation of a collections and dispute management software to automate the resolution of disputes, proactively manage overdue receivables and prioritise collection efforts for better cash flow.
  • A well-considered business process with clear defined team member roles and responsibilities to streamline the operational tasks.
  • A communication approach to provide transparency and to facilitate working efficiency across departmental boundaries.

Receivables and invoice dispute management is a complex, labor-intensive process, especially when past-due accounts threaten your cash flow and increase the risk of bad debt. We have therefore created a checklist, providing you a systematic approach to chasing payments. Please feel free to download our checklist “What steps can I take to get my invoices paid faster?” by clicking the following button.

Implementing the right software to support your accounts receivable operations is an essential strategic step. In the following overview, you can find the most common account receivables issues with their particular business impacts. It is important that your software covers these issues.

Common Accounts Receivables issuesBusiness Impact

   Aged debt reports are downloaded in Ms. Excel

 

   Reactive process with high manual effort

 

   Promises To Pay cannot be captured in a system

 

   The cash flow forecasting is inaccurate

 

   The dispute process is typically managed offline via spreadsheets

 

   Poor visibility and manual processing is needed

 

   There is no system-generated dispute reporting available

 

   You are unable to proactively manage the process

 

   Lack of visibility and transparency for credit decisions

 

   You have a poor control within the process

 

SAP Dispute Management is part of the SAP FSCM (Financial Supply Chain Management) module and is the preferred solution for accounts receivable operations whose companies run SAP ECC or SAP S/4HANA. Please click the following button to watch our webinar recording and learn how you can get your invoices paid quicker with SAP FSCM Dispute Management in SAP S/4HANA.

SAP FSCM Dispute Management to boost your success rates, lower risk and improve your cash flow.

SAP Dispute Management covers all the above-mentioned Accounts Receivables issues and provides the following business benefits and features:

  • Your collection team’s working efficiency is improved through a prioritised worklist that is completely processed within SAP ECC/ SAP S/4HANA
  • This solution significantly lowers your Total Cost of Ownership (TCO)
  • SAP Dispute Management reduces the Days Sales Outstanding (DSO) by an average of 20%. Faster cash collections, invoice settlements and processing of customer invoice complaints are very beneficial for your cash flow
  • Cash flow reporting is improved with the ability to record Promise To Pays
  • Optimised Data Management: data duplicity is reduced and uniformity in data is provided because all disputes are managed within SAP ECC/ SAP S/4HANA
  • Through the SAP ERP integration, your Accounts Receivable or Dept Department gets 100% transparency over customer invoices and billing issues. All open items, credits to customer and decision making are visible through a single access point with real-time data
  • You can proactively manage all open disputes thanks to the built-in workflow
  • With SAP FSCM DM, any complaints, disputes and debt collection are processed in a structured, pro-active and efficient way
  • By automating collections processes, your resource costs, collection costs and bad-debt write-offs are drastically reduced
  • Thanks to the SAP ECC/ SAP S/4HANA integration, SAP Dispute Management automatically updates dispute cases as customer payments are posted
  • SAP DM creates specific account-related cases of receivable and helps to resolve those cases with various underpayments by customers
  • With the built-in analytics you can improve your collection strategies and eliminate the sources of disputes

Project approach for implementing SAP FSCM Dispute Management

PhaseActivitiesPIKON Deliverables
Proof Of ConceptWe build a high level configuration in your development environmentBasic SAP Dispute Management solution to be used for scoping and begin user empathy
ScopingReview of your current "As-Is" process maps and financial supply chain to produce a "To-Be" process map and final scope of the solution

 

  • To-Be roadmap 
  • Final scoping and design document
  • Final reporting requirements

 

Implementation

 

  • Final configuration steps - Unit testing
  • Developments including reporting
  • Workflow activation for disputes

 

Final solution built and Unit Tested Solution moved to "Quality" client for further testing

Testing & Training

 

  • Integration testing & cutover testing
  • User Acceptance Testing
  • End-user training 

 

 

  • Fully tested system
  • Fully trained workforce
  • Ready for cutover

 

Cutover and Go-Live

 

  • Move transports and manual configuration to Production
  • Create new master data
  • Start productive jobs

 

  • Productive environment ready for use
  • All data and jobs ready for Go-Live
After Go-Live Support

 

  • Agreed support window by project team
  • Super users resolving issues
  • Handover from project team to support

 

 

  • Business as usual for SAP DM
  • Confident user community
  • Support managing issues

 

Please click the following button to watch our webinar recording and learn how you can use SAP Business Warehouse (SAP BW) to analyse your accounts receivable operations and make the right decisions to improve these processes, resulting in a positive cash flow.

Please contact us if you want to know how SAP FSCM Dispute Management will help you develop your own business strategy to get your invoices paid quicker and improve your cash flow and working capital. In the meantime, why not scroll through some other relevant content in the yellow tile: