Improve the efficiencies of your accounts receivable and accounts payable to improve your cash flow.
SAP Financial Supply Chain Management is a set of applications from SAP that manages customer-related financial functions such as risk assessment, billing, receivables, and collections, within an SAP ERP environment. SAP Financial Supply Chain Management is designed to increase visibility into and control of cash-related processes between a company and its business partners.
The main business issues faced by organisations
- Contacting your customers to chase for payments.
- Being able to record and track customer disputes.
- Ensuring that you provide significant mitigation for bad debt issues.
How implementation of FSCM enables better business benefits
In FSCM there is a sub-module called “Collections Management”. The benefit is that it provides the cash collectors a prioritised work list of customers for them to call. The work-list is defined through a number of measures that are defined via configuration. This provides an organisation a structured process to tackle the cash collection process.
Dispute Management” is the sub module within FSCM to tackle this. A SAP case record is created to capture the dispute information. Various users can be assigned to a dispute to process or resolve the dispute. Further to this dispute creation can be automated, workflow can be used to ensure the correct individual is passed the correct dispute dependant on the reason of the dispute, type of customer etc.
Within FSCM Credit Management the main benefit is that you can create your own rules to calculate a credit score against a customer.