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Solution in DetailFinanceExecutive SummarySolution OverviewContact UsReceivables Management with SAP Software 2013 SAP AG or an SAP affiliate company. All rights reserved.

Executive SummarySolution OverviewContact UsImprove Cash Flow and Reduce Write-OffsBetter Cash FlowImproved EfficiencyManaged Working CapitalToday’s receivables managers have to constantly balance the need to decreasedays sales outstanding (DSO) and bad debt write-offs while maintaining a superiorlevel of customer service. They are responsible for ensuring that cash is on hand tofund business operations and new growth opportunities. And they have to do allthis at low cost to deliver on margin goals.SAP InnovationsReceivables management is a complex andoften labor-intensive process that’s being madeeven more difficult by the fact that customercredit risk has increased because of globaleconomic volatility.26%Fewer overdue accountsreceivable when receivablessystems are fully integrated tobilling systemsBut the challenges go beyond credit risk.Process inefficiencies in existing marketsolutions are common, resulting in more baddebt write-offs, longer DSO, higher costs, andincreased error rates. And past-due accountsthreaten cash flow and working capitalmanagement while limiting the ability for abusiness to grow without external fundingsources.In addition, while accounts receivable managersneed to collaborate internally and externally,their existing collaboration tools may not allowthem to, for instance, give sales teams up-todate information about customer accounts anduntapped credit lines. Solutions also have togive customers anytime access to informationand support high-quality service. Lean financedepartments must automate interactions andenable management by exception in customerdealings – from managing customer credit riskto dealing with billing disputes.Source: SAP PerformanceBenchmarking2 / 30 2013 SAP AG or an SAP affiliate company.All rights reserved.

Executive SummarySolution OverviewContact UsAutomation Improves Efficiency and EffectivenessBetter Cash FlowImproved EfficiencyManaged Working CapitalA receivables management team manages financial interactions with customers –but in most cases, these teams are constantly under pressure to do more with less.Automating key aspects of receivables processes can free receivables management professionals to focus on providing exceptional support for internal andexternal business partners.SAP InnovationsBest-Run FinancialService ProvidersReceivables teams want to streamline theentire order-to-cash process, from customerorder entry and billing to dispute resolution andcollections. To do this, they need to implementa company-wide credit policy that helps ensurethat each customer transaction is clearedagainst a limit that reflects the current creditworthiness of the customer. At the same time,they must give customers online access to theirbills.When handling billing disputes, receivablesteams need a way to orchestrate the flow ofinformation throughout their company until a3 / 30resolution is found. At the same time,collections teams need to take a proactive,strategy-based approach to contactingcustomers about overdue receivables.SAP software supports and streamlines all ofthese activities and optimizes the flow offinancial information internally and withpartners. At the same time, SAP collaborationtools help receivables managers work withsales professionals to provide superiorcustomer service and decrease DSO. 2013 SAP AG or an SAP affiliate company.All rights reserved.

Executive SummarySolution OverviewContact UsManage Working Capital to Enable GrowthBetter Cash FlowImproved EfficiencyManaged Working CapitalSAP InnovationsFor receivables management teams, the business benefits of effectively managingworking capital are enormous. As external financing costs continue to increase,companies must tap into their receivables and convert them into cash to run andgrow their business. SAP solutions help best-run companies use automation toestablish best-in-class receivables operations while improving their bottom line.SAP solutions are helping customers: Improve days sales outstanding Reduce bad debt write-offs Minimize error rates on bills25% Accelerate dispute resolutionLower accounts receivablewrite-offs when receivablesare integrated with credit,billing, and collection systemsSource: SAP PerformanceBenchmarking4 / 30 2013 SAP AG or an SAP affiliate company.All rights reserved.

Executive SummarySolution OverviewContact UsSAP InnovationsBetter Cash FlowImproved EfficiencyManaged Working CapitalSAP InnovationsSAP software for receivables management leverages the latest technologyinnovations to enable fast responses to market dynamics and real-time visibility intoreceivables. The always-on, anywhere access to information and processesempower receivables managers to collaborate and work smarter. And low-cost,low-risk, scalable, flexible deployment options help companies work with peopleoutside of the accounting department to improve their cash position.Database and technology solutions powered bythe SAP HANA platform enable receivablesmanagers to monitor and analyze high volumesof customer transactions.Powerful, tailored analytics tools help management better organize receivables teams anddetermine which strategies work best for theirbusiness. Managers can focus their teams ona subset of key customers driving credit risk ortying up significant amounts of cash in disputes. Managers can also investigate driversof changes in working capital from a DSOperspective and make policy changes.5 / 30SAP also provides mobile solutions that givefinance professionals always-on access tostatus reporting and exceptions and alerts,enabling quick responses, better decisionmaking, and fewer risks to customer service.Mobile solutions extend financial data andprocesses to business users, especially tosales executives – for example, so they cansee unpaid invoices and disputes underway.They can discuss issues in person withcustomers and provide better service. Forfinance, this helps ensure quick resolution ofbilling disputes and better liquidity planning. 2013 SAP AG or an SAP affiliate company.All rights reserved.

Executive SummarySolution OverviewContact UsAccelerate Receivables ManagementSolution OverviewAccounts ReceivableAccounts ReceivableManage all financial accounting–related aspects of customer accounts receivable.Credit ManagementBilling and E-InvoicingCredit Evaluation and ManagementEmbed proactive credit management in transactional processes and portfolioanalysis.Dispute ResolutionCollections ManagementBilling and E-InvoicingDeploy a customer bill payment portal or an e-billing process.Receivables ManagementWhy SAP?Dispute ResolutionClarify and resolve customer payment disputes quickly and efficiently.Collections ManagementProactively manage customer collections and customer service.6 / 30 2013 SAP AG or an SAP affiliate company.All rights reserved.

Executive SummarySolution OverviewContact UsReceivables ManagementSolution OverviewAccounts ReceivableCredit ManagementAccountsReceivableCreditEvaluation andManagementBilling ntCreate Due ItemCheck CreditCreate Sales Orderand Due ItemCreate Dispute CasePresent Due ItemAssign Credit LimitCreate Invoice PoolResolve DisputeCasePrioritize OverdueReceivablesRelease Blocked SalesOrderPresent or SendE-InvoiceRelease BlockedSales OrderReceive CustomerPaymentBilling and E-InvoicingDispute ResolutionCollections ManagementFinanceReceivables ManagementProcess IncomingPaymentCollect OverdueReceivablesWhy SAP?Receivables managementapplications from SAPaddress all key cross-industryneeds for managing theorder-to-cash process forbusinesses.SalesProcess Customer Service Inquiries7 / 30 2013 SAP AG or an SAP affiliate company.All rights reserved.

Executive SummarySolution OverviewAccounts ReceivableCapabilitiesBenefitsSAP Innovations0.4%Average finance costs relativeto company revenue oftop-quartile performers(compared to over 1.2% forbottom quartile)Source: SAP PerformanceBenchmarkingSolution OverviewContact UsEffectively Managing Accounts Receivable withSAP SoftwareAutomated, integrated accountsreceivable processes support the orderto-cash process in the SAP ERPapplication, giving managers real-timeinsight into receivables portfolios andworking capital. They can work moreefficiently and make better, fasterdecisions.With SAP software, accounting organizationscan record and manage accounts receivabledata for all customers. Automated processesreduce manual effort and lower the costassociated with running this critical financialprocess.For example, postings to accounts receivableare triggered in response to operative transactions in sales and logistics and simultaneously8 / 30recorded in the general ledger. Customer lineitems are automatically cleared when theincoming payment is received by the system.And receivables data can be integrated withdispute, collections, and credit managementapplications to reduce manual effort and lowerthe costs associated with these processes. 2013 SAP AG or an SAP affiliate company.All rights reserved.

Executive SummarySolution OverviewAccounts ReceivableCapabilitiesBenefitsSAP Innovations57%Lower finance cost as apercentage of revenuefor automated versusunautomated companiesSource: SAP PerformanceBenchmarkingSolution OverviewContact UsMake Accounts Receivable (A/R) the Backbone ofOrder to CashSAP software includes an accounts receivablemodule that is central to managing all billingrelated interactions throughout the order-tocash process. Initially, it enables outgoinginvoices or bills to be posted, organized, andviewed by respective customer accounts.The software’s payment handling and clearingmodule plays a key role in the A/R process aswell. Incoming payments can be posted manually or using automated rules. Customertransactions involving down payment requestscan be managed. Received down paymentsare cleared automatically.And finally, mobile reporting functionality givesmanagers insight into the status of theirreceivables portfolio. A mobile app for salesexecutives makes accounts receivableinformation accessible anytime, anywhere.The accounts receivable module lays thefoundation for effective management of credit,collections, and disputes by providing a single,unified view of customer outstanding amounts.This information is readily available foranalysis.9 / 30 2013 SAP AG or an SAP affiliate company.All rights reserved.

Executive SummarySolution OverviewAccounts ReceivableCapabilitiesBenefitsSAP Innovations70%Of leading companiesintegrate billing andcollections with order entryand credit, with no duplicatedata entrySource: Aberdeen Group,August 2012Solution OverviewContact UsAn Integrated Approach Reduces Costs and HelpsEnsure Data QualitySAP software includes an accountsreceivable module for processing allcustomer receivables. The integratedapproach to logistics, sales, dispute,collections, and credit managementkeeps data synchronized, reduces errorrisk, lowers audit costs, and helpseveryone understand the value ofcustomer relationships.Taking an integrated approach to receivablesresults in both operational and complianceadvantages. For example, automating postings,enabling self-service, and providing mobileaccess to key receivable information lower theoperational load of the finance departmentwhile reducing costs. Companies can alsoreduce DSO by giving accounts receivableteams insights into outstanding customerpositions during customer interactions.At the same time, automation eliminatesmanual, error-prone processes and supportscompliance and risk management. Automationalso reduces audit costs because it helps tostandardize and document processes.Finally, companies can improve customersatisfaction by giving their accounting team andsales representatives fast access to real-timeinformation about the status of their inquiries.10 / 30 2013 SAP AG or an SAP affiliate company.All rights reserved.