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Decentralized Collections in FSCM by business area

Dear Experts,

We are currently evaluating the functions of SAP collections management. Due to the fact that the company has a decentralized worldwide organization, it is required to separate the receivables on a business area level.

Although the standard Collections Management design is for company code to be the lowest level of detail I would appreciate any input if it would be possible to choose the business area as the lowest level of detail.

Thank you in advance.

Best regards,

klaus

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1 Answer

  • Jan 14 at 09:55 AM

    Performing Collection activities at a lower level, means that more than one Collection Specialists are to contact the same Business Partner, to perform activities ONLY for the AR Invoices in their specific Business Area, even if there are more customer invoices at company code level. This is not in the standard deliverable. The SAP design is for collection activities to be performed in a centralized way.

    However, you may consider setting-up different Sold-to BP accounts under the same Payer. You may link the SD invoicing process to Sold-to’s based on the Division (is the Division also the Business Area?)

    In FSCM Collections configuration, under “Distribution of Data in Collections Management” -> “Activate Distribution per Company Code”, there is an option for “All Items for Branch”. If you set this indicator, then in SAP Collections Management the data from Branch Accounts is included, and open invoice items in SAP Collections Management are in this case always considered under the Business Partner corresponding to the Account Number of the Branch in the invoice item, and thus collection activities are now performed at a lower level. Business Add-In FDM_COLL_DETERMINE_BRANCH could be used to define the Branch Customer as being the Sold-to.

    Hope this helps.

    Georgios Sofianos

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    • Dear Georgios,

      Thank you very much for your valuable answer and the information that this concept is not the standard deliverable.

      Currently we do not use SD for the creation of invoices. Instead we use a non-SAP solution to perform this task. Although there are some considerations to implement SD it will definitely take some time.

      Based on your information and the results of my research I highly doubt to use Collections Management on a business area level.

      Thanks again.

      Best regards,

      klaus