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Collections itself is a very complex strategic process as businesses rely on the repayments from the customers heavily to run their business. Collection Analysts need to do a lot of background checks and research work on a person's or a company's riskiness before extending them any kind of credit limits and dunning them for any overdue. In all of this, it becomes very important to segment customers based on some pre-defined parameters. Segmentation should be done based on priorities, amount to be collected, number of days past due, and the ability of the company to pay, and the maximum probability to get the amount in minimum efforts.
Well, segmenting could be a cumbersome task that might consume a lot of time for these already occupied analysts. Untimely payment of these amounts could result in organizations being left behind in the business with less or no cash in hand. These finances make up a major portion of their account. There could be several reasons behind these overdue ranging from expired credit cards, payment gateway errors, insufficient credits to canceled cards to deactivation of the service. These calls for immediate action on the analyst's part in order to prevent the organization from falling behind and incur the loss. Collection Analysts send reminders in form of mail, letters, and calls to these overdue customers.
What if this complex process from segmentation to sending reminders becomes streamlined and intelligent?
SAP FSCM will help us make the process more facile.
SAP FSCM acts as a reliable collection management system by segmenting customers based on dunning procedures defined by the analyst and send dunning notes (emails and letters) to these overdue customers and helps organizations recover the amount faster. Collection Analysts can choose the format of dunning notes from the templates available and they can also customize it based on the details and procedures furnished by them in SAP FSCM. Dunning is similar to sending reminders to the customers for their outstanding`s amounts. SAP Dunning configuration includes several steps, tune into this course to know more about dunning and the various steps and processes involved in the configuration, and how your business could benefit from it.
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