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Dr. Wolfgang SchaperSolution Manager SAP NetWeaver Decision ServiceManagement, SAP AGNext Generation Collections Management withSAP NetWeaver Decision Service ManagementJanuary 2014

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementTABLE OF CONTENTSIntroduction . 3Use Case . 4Setting up the Decision Service . 5Customize Collection Strategy. 11Run Dunning Proposal . 13Apply Changes to Collection Strategy . 16Resume . 182

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementIntroductionSAP Collections Management permits customer-specific dunning processes with segment-specific collectionstrategies. Depending on the business partners, their payment history, risk assessment, and other factors bedifferent steps may need to be executed in order to minimize the amount of claims that cannot be collected.For adapting collection strategies to changing market situations, legal requirements, and policies it isessential to empower business domain experts to apply changes easily and with no IT expertise. Not beingable to adapt your collection strategies may lead to financial losses, or may even be in violation of the law.SAP Collections Management uses SAP NetWeaver Decision Service Management to define rules fordetermining the next collection step for a business partner in a specific situation.SAP NetWeaver Decision Service Management empowers domain experts to control decision logic withoutassistance from IT, simplifying and accelerating the way logic is implemented and changed across enterpriseapplications.Decision Service Manager provides access to metadata, code, and values (master data, Customizing) tomanaged systems such as CRM or Collections Management for “local” modelling. From the modelledservice, Decision Service Manager compiles anexecutable service on the managed system for localexecution. The managed system does not requireFurther informationupgrades (or support packages); Decision ServiceSAP Collections ManagementManager can be upgraded independently. tservices are safe from upgrades; they are not affectedSAP NetWeaver Decision Servicewhen managed systems are upgraded.ManagementRapid change cycles are in the hands of the domainhttp://scn.sap.com/docs/DOC-29158experts. SAP NetWeaver Decision Service Managementoffers analysing, optimizing, and implementing capabilities:service execution testing, tracing, analytics. No ITinvolvement is required. There is no downtime. And test deployments to any number of systems arepossible. SAP NetWeaver Decision Service Management allows for automated business decisions with fulltransparency for better decision quality.3

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementUse CaseBelow, we will show you how a collection strategy can be set up and changed, and how this affects thedetermination of the next collection step.In our example, there are six different collection steps such as a reminder call or a disconnection notification.These collection steps are defined in ABAP database table TFK047U, which is used in CollectionsManagement. Depending on the last dunning step, the time that has passed since then, the businesspartner’s risk class, the delay, and the existence of open work items the next dunning step needs to bedetermined. For instance, if the last dunning step was sending out a reminder letter more than 8 days ago,the delay is 12 days or more, and if this is not a high risk business partner, we want to trigger a reminder callas the next step. Here you can find an overview of all cases:Last Dunning StepRisk Classnonenone or announcement callreminder letterreminder callreminder callanyany other casenot very highnot very highnot very highnot very highvery highDays in Days Since Open Work Collection StepDelay Last Step Items -2announcement call 4reminder letter 12 8reminder callnodisconnection notification 2yesenforcement work item 4release for external collectionnoneAs we will see later, we can use this exact representation to model the business rules with SAP NetWeaverDecision Service Management.A big benefit of SAP NetWeaver Decision Service Management is to permit central rules maintenance for allsystems in your system landscape, so we will use this capability to segregate design time and runtime.We will apply some changes to the decision making logic, which leads to a different follow on step in thesame situation. We will see how quick and easy it is to adapt these rules.This is not a general introduction to SAP Collections Management or SAP NetWeaver Decision ServiceManagement. For this please see the links offered in the box on page 3.4

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementSetting up the Decision ServiceBefore running the determination of a collections step by SAP NetWeaver Decision Service Management, weneed to set up a decision service. Once this initial step is completed, we can apply changes very easily. Theeasiest way to do the initial setup is to use the BRFplus Workbench (transaction code BRFPLUS) to copy thedefault BRFplus application with all included objects as a template, and transfer it from the collectionssystem to the Decision Service Manager system. This transfer can be done by XML export/import or by usingService Import in Decision Service Manager (transaction code DSM). By doing so, we make sure that adecision service with the same ID is available in both systems. This is needed later for assigning thecollection strategy (see the Customize Collection Strategy section, page 11).There is a function ID and data objects that are part of the delivery of SAP Collections Management. Wecopy all of this to the Decision Service Manager system as described so that we then can alter and deploythe decision service from there. This does not require any changes in the backend application as the sameservice/function ID is used. When deployed, the deployed service is used instead of the local one.To be able to access the backend data of the collection management system, we will assign the applicationto this system. We will do so using Decision Service Manager (transaction code DSM).This assignment establishes a connection to the managed system, permitting access to all backend dataobjects, database tables, and other DDIC objects of the managed system instead of the backend of theDecision Service Manager system.5

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementBy copying the function, we are also making sure that it has the correct signature, which looks like this:All of the input parameters will be filled by SAP Collections Management. The next dunning step is to bereturned in data element E STEP (Collection Step).6

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementA ruleset that contains the actual business rules is assigned to this function. Here you can see a simpleexample that we prepared earlier.7

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementIn the first step, we will determine the risk class of the respective business partner. This is done by adatabase lookup expression that reads from ABAP database table DFKKCMS. Basically we are interested infinding out whether we are dealing with a high risk business partner (risk class ‘D’) or a non-high riskbusiness partner (any other risk class).As we are modelling these business rules in the central Decision Service Manager system, this master datadoes not refer to the local backend, but to the collections system. It is not even necessary for this databasetable to exist in the Decision Service Manager system when a connection from managed system to DecisionService Manager has been established and the imported application is assigned to the managed system.Then all DDIC metadata is taken from the managed system through the connection. For this reason we havealready assigned the application to the managed system.8

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementIn the second, step we determine the next dunning step, which is done using a decision table. Be aware thatthis is only an example. If needed, you can use other expression types or more than one expression todetermine the next step.This decision table has the same structure and the same content as the table describing the scenario onpage 4. It can easily be understood by any business domain expert, who does not necessarily need to be anIT expert.Some of the columns refer to other expressions, such as ‘Days in Delay’ which refers to a formula thatcalculates how many days have passed since the earliest due date of a claim.When the decision service is created and activated, we can deploy it to the collections system. By doing so,we can maintain all collection strategies in a central place, while rules execution is run locally in thecollections management system. Deployment is done with Decision Service Manager (transaction codeDSM). We select the collections system as a managed system and deploy the decision service. This can bedone by any business domain expert, who does not need to have IT expertise. The deployment is performedimmediately without having to wait for a transport cycle or window of opportunity.9

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementIf needed, we also can deploy decision services as of a specific date and time, or apply the deploymentworkflow to implement a customer-specific release process. SAP Decision Service Management providesseveral ready-to-use building blocks such as approval steps, test deployments, automatic tests, and more.10

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementCustomize Collection StrategyTo use these rules in Collections Management, we need to assign them through Customizing (transactioncode SPRO) in the collections system. We can make this assignment by following the path FinancialAccounting (New) / Contract Accounts Receivable and Payable / Business Transactions / Dunning / Dunningby Collection Strategy / Define Collection Strategy. You can apply changes to the business rules later withouttouching or transporting Customizing again.11

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementWe will select the names of the application and the function to be used for a collection strategy. These arethe names of the objects we created earlier in BRFplus Workbench.12

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementRun Dunning ProposalNow it is time to run the dunning proposal. We can do so from SAP menu by choosing Utilities Industry /Contract Accounts Receivable and Payable / Periodic processing / For Contract Accounts /Dunning notice /Dunning Proposal Run. Of course we can also call transaction code FPVA directly in the collection system.13

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementIn the dunning proposal, we enter the date, the identification, and the business partner and run the program(choose ‘Schedule Program Run’ and go for immediate execution).As a result, we get collection step C002 (Reminder Letter). The dunning history can be accessed through themenu Environment / Dunning History.14

Next Generation Collections Management with SAP NetWeaver Decision Service ManagementTo understand how this result was derived, we can switch to the ‘Dunning Parameters’ tab and then choose‘Trace’.15