Dunning by Collection Strategy Benefits

[Former Member]

When migrating a Production System utilizing Dunning by Procedure to the Dunning by Collection Strategy, what are the benefits of choosing the Dunning by Collection Strategy versus continuing with the Dunning by Procedure?

Is the Dunning by Collection Strategy all inclusive of the features within Dunning by Procedure and it includes other, added benefits or do you lose some functionality while gaining other benefits added with this new feature please?

[william_eastman · Accepted solution]

James:

Here is a [document|https://service.sap.com/~form/sapnet?_FRAME=CONTAINER&_OBJECT=011000358700001227122009E] which might answer some of your questions.

In short form, collections strategy allows for usage of more flexible criteria in determining the right action at the right time. When done correctly, it should be more easily maintainable and more usable by business and business analysts than using dunning procedure.

Benefits would be reduced data maintenance due to not changing dunning procedure whenever customer master data changes -which is usual part of dunning procedure solution. Also, getting away from a linear, defined beginning and end point, prcess and moving to a dynamic, approach which can be started or ended at any point based on rules.

Other features only available with collections strategy: capacity balancing; champion challenger, business rules framework.

regards,

bill.

[Astrid_Gambill]

Hi Bill

I tried to access the document you linked and got the following error:-

System error

User not authorized to access requested Info Object !

Thanks

Astrid

[william_eastman]

I have uploaded the document to this [wiki|http://wiki.sdn.sap.com/wiki/display/UIndustry/DunningwithCollections+Strategy] for now. This is an older document but contains information about the functionality.

Edited by: William Eastman on Jun 2, 2011 8:38 PM

[Former Member]

Thank you for the information, I experienced the same error while trying to access the link for the older document, but I viewed the data on the WIKI . The BRF seems very configurable to allow you to enhance the rules as dynamic as the Business needs evolve.

So, are there any items that were available in Dunning by Procedure that you lose or do you give up any functionality when you implement Dunning by Collection Strategy please?

When clients make the Business Decision to implement the new Dunning Strategy are there any cautions or conditions that are stated prior to making the change, because I heard that once you implement the Dunning by Collection Strategy it is difficult to go back to Dunning by Procedure if the Business determines that the new method is not what was intended or too much of a maintenance matrix.

[william_eastman]

James:

Anything which you give up? Not really - but I suppose if you like a structured approach with relatively limited options, then yes you are giving that up.

As to the other question - I don't really understand it. Once you implement anything, it is difficult to make significant change. That same statement applies to customers who implemented the original dunning procedure approach - but which have now realized its limitations and are embarking on a system change. I am surprised that there are customers which would rather have dunning procedure than collection strategy. But some people like RC cola, too

regards,

bill.

[Former Member]

Thank you for your responses. I have a lot more information now to digest and prepare for our Functional & Technical Design.

I just need to look at our Business Data and our rules to determine why we would want to stay with Dunning by Procedure.

[william_eastman]

Some more things to consider:

As dunning procedure approach is more well known, more implemented in the past - then it is more often the preferred approach of SI. Implement what you know. Few consultants are experienced in collection strategy approach. This leads to a self-fulfilling prophecy, and is seen in other areas where SAP has improved functionality or has provided new solution to a function.

Collection strategy approach should be more beneficial though to the implementing customer long term.

Dunning procedure approach might be more suited to an implementing company with static collections rules, limited operational areas (e.g. operating in one jurisdiction) or who do not view collections process as strategic.

Collections strategy approach is much more suited to a company who operates in many areas, has several services, sees the collections process and the rules as more dynamic and wants to change them as necessary or as desired so that they can realize their vision (champion-challenger).