NCOAUG Training Day Advanced Collections James.Ross@Cambridge-NA.com August 15, 2008 I would like to welcome everyone today. Today we will review the Oracle 11i Advanced Collection Module features and setup.

Advanced Collections Overview Collections agents and their managers can use Oracle Collections to: Identify delinquent customers Obtain a snapshot of the customer’s past payment history Review a customer’s 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 customer’s records Create tasks What is Advanced Collections… What can it do for me? Through the utilization of the Advanced Collection module, you will be enabled to; Quickly delinquent customers by the worst offender to the least offender based on defined rules. Review payment history Review aging View Collection Metrics Track Delinquencies Calculate collection scores Dunning notices Scheduling Callbacks and Follow-ups Tasks

Advanced Collections Key Features Delinquency, Broken Promise, and Strategy Actions Nodes on the Collector’s Work Queue Collections Header Operational Data Views Profile Tab with Metrics Tables Detailed Collections Histories Automated Collections Scoring and Strategies Management Dunning Plans Aging Information Payment Processing Promise to Pay Dispute Handling Adjustment Processing Payment Reversals Collections Correspondence Shared Notes Creating and Managing Tasks Attachments Customizable Tabs Collections Lifecycle Management Case Management for Delinquent Leasing Contracts Manage Delinquent Loans Contracts Information eBusiness Center to support Collections There are a number of key features within the Advanced Collections Module; Have automated collection scoring and strategy management Record promise to pay commitments and report on broken promises to identify them right away Send Dunning letters Process payments and adjustments Handling of Disputes within the module Creating notes and follow-up talks

Universal Work Queue Advanced Collections utilizes the Universal Work Queue. As a collection agent, you are able to view; Delinquent Customers Customers who have broken promises Tasks that have been created and assigned to you as the collector for that account

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. The Universal Work Queue allows for the columns in the right hand pane to be re-ordered, and sorted (on any one field). You can also export the contents and load into Excel for additional or more advanced filtering and sorting. Additionally, you can double click on any line and drilldown to the Advanced Collections form with that account queried. Double click on any line to drilldown and open the Advanced Collections forms.

Collections Form Collection Record Header Collection Record Detail This is a view of the Collection form. It is the main form in the Advanced Collection module. As with other Oracle modules, there is a header section and detail section. Here you will find various details about your customer such as; Contact Information Length of time as a customer Number of delinquencies Amount overdue Last payment metrics Now we’ll review the tabs in the collection record detail section.

Oracle Advanced Collections - Profile Tab

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. The profile tab is simply read-only information regarding your customer, the fields include: Credit rating and other metrics Past year installment payment metrics Past year promises metrics In the lower sections, you can define metrics through setup and assign values and alerts via color coding.

Oracle Advanced Collections – History Tab

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. On the History tab, you are able to view previous transactions on-the-fly. While contacting this customer, you have the ability to see a quick view of their activity. From here you are able to drill down into specific transaction detail.

Oracle Advanced Collections - Accounts Tab

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. The account tab lists all accounts within a parent company and allows the user to drill down on the accounts.

Accounts Tab - Detail Button View Credit Information View Existing Role Information that was Entered in Oracle Receivables By clicking the detail button on the Accounts tab, the Customer Account Details form will display. Available tabs are; Credit details and payment terms and other related information Roles – Read only view of contacts Click Cancel to return to the Collections window

Accounts Tab - Detail Button Cont’ View Site Info for the Customer View Account Relationships Sites – Read only view of sites that are defined for the customer And on the Relationships tab, you can view established relationships as defined in the customer master. Click Cancel to return to the Collections window

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. When applying account relationships, you define whether the relationship is one-way or reciprocal. In a one-way relationship – the parent can pay against child invoices, but the child cannot pay against the parent’s invoices And respectively, in a reciprocal relationship both parties can have payments applied to each other’s debit items.

Oracle Advanced Collections - Transaction Tab

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. In the transactions tab the customer’s transaction are available. Results may be filtered on Invoice, Credit or Debit Memo, Chargeback Etc. From the transaction tab, payments can be processed, adjustments can be entered and other actions like disputes

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 Disputes can be entered sent via the credit memo workflow for review and resolution.

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. Customers can dispute just a section of the invoice such as lines, shipping, tax or totals

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. While invoices are in dispute they are not considered delinquent.

Oracle Advanced Collections - Lifecycle Tab

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. The lifecycle tab is used by the Lease Management Module is out of scope for this presentation.

Oracle Advanced Collections - Aging Tab

Aging Tab Cont’ You can view your customer's outstanding account balances on the Aging tab in Collections.

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.

Oracle Advanced Collections - Notes Tab

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 Collectors can enter notes in the following situations: Processing a payment Recording a promise to pay Processing a dispute Reversing a payment Recording delinquency information Reviewing cases Completing a customer interaction Recording information related to a task

Oracle Advanced Collections - Task Tab

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

So How Do You Set Up Oracle Advanced Collections?

Dunning Letters Strategies 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 Very simple to set up Realize benefits faster Identify where strategies would benefit Tailor strategies for sets of customers Develop different tasks for each strategy

Let’s cover the Dunning Letter Setup

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 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

Setup New Responsibilities Collections Agent Forms Administrator HTML Administrator HTML Manager Need all four for each operating unit Setup New Responsibilities Collections Agent Forms Administrator HTML Administrator HTML Manager

Assign Profiles to new responsibilities for MO and SOB Set MO: Operating Unit Set GL Set of Books Name Assign Profiles to new responsibilities for Multi Org Operating Units Set of Books

Assign Responsibilities to users Query each User Name Fill in Person who is the Collector Assign the proper responsibility Assign Responsibilities to users Query each User Name Fill in Person who is the Collector Assign the proper responsibility

Setup Party Relations Types Collections Collections Of Dunning Dunnings Of Setup Party Relations Types Collections Collections Of Dunning Dunnings Of

Setup Relationship Types Trading Community Manager Administration Relationships 11.5.10.2 Version Setup Relationship Types

Setup AR Collectors Employee Name matches the Person in the User Screen Setup AR Collectors

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

Define Resource Hierarchy Group “Used in” Tab must include “Collections” Define Resource Hierarchy Group “Used in” Tab must include “Collections”

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 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

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 Assign Collector to the Customer / Site Profile Customer Level Site Level

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 Setup the Profiles for Universal Work Queue

Setup Task Types CRM Administration Setup Task Types

Map Task Types CRM Administration Map Task Types CRM Administration

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 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

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 Setup Scoring Engine – Continued Enter Score Name Enter Score Description Set Enabled Flag to Yes You are now ready to add Score Components

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…. Setup Scoring Components. 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

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

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

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 <= 0 are Best (100) Amounts over $1M are Worst (1) Repeat for each component

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 Assign JTF Admin Rights to Administrators

Create Fulfillment Engine Dunning Letters (examples) Sign onto One-to-One Fulfillment Create Collection Agency Letter Template Create Reminder Letter Template Create Fulfillment Engine Dunning Letters

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 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

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

Run the Scoring Request Set

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 Oracle Collections Concurrent Request Set Can be run as frequently as you process payments and invoices Recommendation: Run once a week

Advanced Collections Questions