Migration White Paper - Final

Migrating to Oracle Advanced
Collections: An Overview for

Oracle Receivables Users
An Oracle White Paper
Winter 2007
Part One – A Better Collections Management Paradigm
MIGRATING TO ADVANCED COLLECTIONS: EXECUTIVE OVERVIEW
Oracle Advanced Collections, an Oracle E-Business Suite product
recognized as the leading enterprise-wide collections management
solution, replaces the Collections Workbench in Oracle Receivables in
Release 12.0. Current Receivables customers, implementation teams,
Oracle partners, and prospective Oracle customers need to understand
the benefit, impact, and migration steps necessary to migrate an
Receivables-based collections operation to one using Advanced
Collections.
MANAGING COLLECTIONS IN TODAY’S WORLD
Collections and receivables management organizations are under
pressure to collect more while reducing their cost to collect. Oracle
Advanced Collections provides the tools needed to efficiently manage
collections processes in today’s complex economies, growing businesses,
and increased globalization.
Collections managers and collections organizations are challenged with a
number of business and operational problems that Advanced Collections
solves:
• Providing collections agents with accurate and complete data about transactions
and delinquent customers. This has often been impeded because of data
synchronization flows run between disparate corporate systems or
batch processes done during off hours. It may also be caused by
outdated and inaccurate information about the customer such as
old addresses, contact information, phone or fax numbers.
• Identifying delinquent transactions accurately, consistently and timely. The
longer an invoice is unpaid, the less likely payment will be made.
Collectors often don’t know which customers are delinquent until
aging reports are run. Because they have no way of prioritizing their
work, they frequently focus on individual invoices or more
cooperative customers while ignoring customers with large
balances.
• Identifying customers who have high dollar service contracts or who have large
payments coming up and have habitually paid late. If these customers can
be notified before the next payment is due, corporate cash flow is
less likely to be negatively impacted.
• Knowing which accounts need attention and which don’t. Inexperienced
collectors often neglect the accounts that are most likely to pay,
thus impacting collections goals. Unresolved issues such as broken
promises to pay or disputes often slip through the cracks.
White Paper Title Page 2

• Managing different customer segments differently. Regional regulations,
customers in stressed or volatile industries, or new customers may
need different treatment plans.
• Ensuring that best-collection practices are consistently applied within collections
teams to provide uniform treatment of similar customers.
• Reducing the hours per day collectors spend performing manual, time-consuming
tasks that take them away from interacting with customers to get
payment.
MOVING TO ADVANCED COLLECTIONS

The Collections Workbench in Receivables was originally intended for
AR clerks who occasionally performed collections activities. These clerks
also performed the account management, cash application, transaction
management and other accounting related activities in a receivables
department. Over time, as more manual functionality was added to the
Collections Workbench in the form of new windows, navigation became
“..the consistent achievement of more complex, and usability decreased.
exceptional results is indicative of
a new process or paradigm, and Oracle Advanced Collections leverages both transactional and customer
that is exactly what collection
data. It applies customer relationship management concepts to
software provides. Collection
software is not simply a tool, receivables management processes. It also automates collections
among possibly many others, to processes that had been previously manual and streamlines user flows. It
help collectors do better. Rather, seamlessly integrates with other E-Business Suite applications. Since its
collection software provides an initial release in 2001, industry analysts and early adopters of Oracle
entirely new approach to collecting Advanced Collections have recognized it as the next-generation
a portfolio of … receivables within collections management enterprise-wide solution.
a unified process. “
Key Features
David Schmidt, Paystream If you migrate from the Receivables Collections Workbench to
Advisors, Inc. “Receivables and Advanced Collections you can:
Collections: Buyer Guide””
• Leverage real-time transactional and customer data
• Execute proven collections best practices

• Use configurable scoring, strategies, dunning plans
• Treat different customers differently
• Proactively manage collections issues
• Automatically identify delinquent/pre-delinquent customers
• Push only actionable, prioritized work to collectors
• Use Call Center enabled tools for multi-channel customer contact
• Streamline collections process
• Navigate more easily through collections screens

• Automate correspondence notification
• Track payments, promises, incomplete work, interactions
automatically streamlining interactions between various team
members
KEY CONCEPTS AND DEFINITIONS TO UNDERSTAND

Advanced Collections supports a number of innovative processes and
concepts that are different from traditional collections practices. It’s
Automation Improves important to understand these concepts and to know how Advanced
Collections Efficiency Collections uses them. For additional information on Advanced
7 Collections refer to the Implementation Guide and User Guide available
6 on Metalink.
5
Transaction
Hours/day
3
In Receivables, an invoice, debit memo, credit memo, chargeback, or bill
2
receivable. Receivables maintains transaction tables which Advanced
1
Collections accesses. Invoices can include one or more payment
0
schedules.
Manual Automated Delinquency
Research/Prep Follow Up In Advanced Collections, it is a transaction that is overdue. The criteria
Customer Contact used to determine which transactions are delinquent are configurable.
The seeded delinquency configuration uses a payment schedule for
which the dispute amount is less than the total amount overdue and the
due date is prior to the current date to determine delinquency.
Delinquencies are identified from invoices, chargebacks and debit
memos. Advanced Collections identifies delinquencies by running a
‘delinquency status determination’ concurrent program and maintains
this information in delinquency tables.
User Role/Responsibility
These terms describe the functional person who normally uses part or all
of the applications.
Receivables Clerk - The person using the Collections Workbench in
Receivables. This person performs receivables related activities (such
as cash application, receipts, and transactions management) along
with occasional collections activities with customers.
Collections Agent - The person using Advanced Collections to work

with and resolve customer non-payments. The collections agent’s
primary job is to contact a customer regarding a collections issue in a
collections organization.
Collections Manager - The person who is generally a functional

manager or supervisor in a collections organization. This person uses
Advanced Collections’ HTML screens to review and manually assign

work when agents are temporarily away (vacations or illness). They
also use HTML manager screens to view data regarding later-stage
delinquency situations that require their review for further action.
Collections Administrator - The person uses the Advanced

Collections implementation and setup module to set collections
scoring, dunning and strategy parameters system profiles, schedule
concurrent programs, and configure system lookups.
Collector’s Work Queue

Collector’s Work Queue provides a high-level list of all actionable work
“Solutions that provide decision assigned to or owned by a collections agent. This work is automatically
support for collections analysis and ‘pushed’ to the agent as part of the automated collections management
strategies, proactively manage and
flow provided by Oracle Advanced Collections
track customer interactions, enlist
the support of the sales and Operational Data Level
service organizations in
collections, and provide portfolio
Oracle Advanced Collections supports four data levels and displays most
performance measurements, information at all four levels. The data levels controls numerous features
ultimately to improve days sales in Advanced Collections including visibility to nodes on collectors work
outstanding (DSO) and customer queue, strategies (or dunning), and default displays. Most collections
value through more effective organizations operate and do business with their customers at one of
relationships… “ these data levels most of the time. Ability to drill down or roll up from
data level to another is provided in Advanced Collections. These data
John VanDecker, Meta
levels are:
Group/Gartner Group, “Leveraging
Revenue and Receivables
Management” Customer (TCA Party)– Also called “Organization”. Displays
cumulative data and balances to the user.
Account (Receivables Customer) - Receivables creates accounts for
parties when an order is generated. Accounts can have one or more
Bill To addresses.
Bill To Location Site–

The address in an account to which a specific
group of transactions are associated, generally for billing purposes.
Not always the same as “ship to”.
Transaction – In terms of operational data level, this is a specific

delinquent transaction. Other operational data levels include one or
more transactions. Or the collections organization may collect from
individual transactions.
Scoring Engines and Scoring Components

Scoring engines consist of one or more scoring components and they can
be configured to provide a score at the customer, account, and bill to
level. Advanced Collections uses configurable scoring engines for two
purposes: to determine whether a transaction is delinquent and to
determine the business value –or collections score - of customers.

Collections scores are similar to a customer’s credit score but they
generally guide how aggressively the customer is treated during collection
activities.
Payment
Oracle Advanced Collections supports the ability for collectors to take
payment from customers through either credit card or bank Electronic
Fund Transfers. Payments may also come from the lockbox process in
Receivables or self-service payments from customers using Oracle
iReceivables.
Promise to Pay
Oracle Advanced Collections supports the ability for a collector to take a
customer’s promise to pay in the future for one or more transactions.
Promise information is maintained by Collections and used to reconcile
promises against actual payments. If the payment is not made a ‘broken
promise’ is created and posted to the agent’s Work Queue.
Segments
A way to group customers based on any database criteria including
geography, delinquency amount/range, payment schedule due dates,
company size, sales revenue to collecting organization, industry or
virtually anything else. These segments are then applied to Strategies
(optional) or Scoring Engines (required) in order to apply the most
appropriate strategy and scoring engine to a particular set of customers.
Segments are used by scoring engines to facilitate the processing of the
score calculation. Segmentation provides the means to create sub-sets of
the entire customer database. This allows for different scoring engines
and strategies to be used for different groups of customers.
Collections Method
Deploying organizations may choose from two collections methods
supported by Advanced Collections: dunning plans and collections
strategies:
Dunning Plan - The traditional method used to notify a delinquent
customer about an unpaid balance. Advanced Collections provides
the ability to send dunning letters via fax, email or printed letter.
Additionally, Collections can use the customer’s collections score and
the oldest aged invoice to determine the content and delivery method
of the dunning notice. If payment is not made within a specified
period of time, Advanced Collections can automatically assign a
‘dunning callback’ to a collector who will see that action on their
Task node in the Collector Work Queue.
Collections Strategy - Compared to Dunning Plans, this collections

method supports more complex means to contact and manage
customers about their receivables situation. Collections strategies

consist of one or more work items, which are actions performed by
either the system (send a reminder letter) or the collector (call this
customer). Work items are timed to be executed serially. Strategies
are based on collections scores so different strategies can be used for
customers with ’good’ or ‘bad’ value scores. Collections strategies
can also be used to alert pre-delinquent customers about a pending
payment. Unless a deploying organization has no need to do
anything more complex than simple dunning, the best practice
recommendation is to use collections strategies. This allows for
flexibility as the organization changes in the future.
IMPACT ON RECEIVABLES USERS: COMPARATIVE CHART
Let’s take a look at what Oracle Advanced Collections offers for Oracle
Receivables users. This section compares previous functionality in
Receivables with what is now provided by Advanced Collections.
NOTE: You can click on links in this chart to see a screen shot of the
described feature in an Appendix. Click on the section name in the
Appendix to return back to this chart.
Functional Comparison Chart
Receivables 11i Advanced Collections r12 Navigation Details and Comments
Navigator Menu: Navigator Menu: Login as Collections Agent > Collections Navigator
Customer Calls Collector Work Queue Menu. Search: controls numerous features in
Customer Account Collections Collections including visibility to nodes on collectors
Account Overview Statements work queue, strategies (or dunning), and default
Aging Search displays
Correspondence Reports
Account Details Receivables Reports can be added to the Collections
Transaction Overview menu
Scheduler
Work Prioritization: Work Prioritization Login as Collections Agent > Collectors Work Queue
Customer Search Collector Work Queue
Call Scheduler Select Navigator Menu > selected record from list
Aging Reports will automatically appear on Collections header

Single Screen Navigation Single Screen Navigation: Collections Main Screen contains a header and tabs.
N/A Collections header with tabs below:
Multiple screens need to be opened Profile with Metrics Additional optional tabs are displayed when
History Advanced Collections is licensed to deploying
Account organization:
Transaction Strategy
Aging Lifecycle (for later stage collections management)
Notes Custom Tab 1
Tasks Custom Tab 2
Case Management (for Lease Collections)
Contracts (for Lease Collections) – not currently
accessible
Loans (for Loans Collections)
Operational Data Level: Operational Data Level: On the Collections main header screen, collections
Account Customer (Party) agents can select the data level that sets the View of
Bill To Site Account the data displayed. Users can change the View to
Transaction Bill To Site drill down or rollup customers’ data.
Transaction
Scoring: Scoring: Customer collections score is displayed on the
N/A Set up during implementation and Collections header.
managed by the system. Used in
Dunning Plans and Strategies Account collections score is displayed on the
Account tab
Segments: Segments: Additional segments can be configured when
N/A Set up during implementation Advanced Collections is licensed to deploying
Default segment is “all customers” organization.
Dunning Plans: Dunning Plans: Manager login as Collections Administrator
-Generated as report -Set up during implementation
-Sample Letters included -Preconfigured Dunning letters are Select Setup Checklist > Collections Method >
-Dunning History displayed in available via XML Publisher tool Dunning Plans -Add details including dunning
Correspondence - Optional dunning callbacks can be correspondence templates and delivery method
-Ability to add Finance Charges to assigned to agents
dunning letters - Receivables Dunning history is
-Ability to manually exclude or displayed on Correspondence History Collectors logs in as Collections Agent > History tab
include in dunning activity table > Correspondence to see dunning history > Resend
- Ability to resend Collections’ Dunning button to resend
dunning is provided
- Ability to include or exclude Dunning callbacks are automatically posted to
customer, account or bill in dunning Collector Work Queue
activity
- Ability to Resend Receivables
dunning letters will be accomplished
by using Receivables’ modified
Dunning process which will print only
historical dunning notices.
Statements: Statements: Login as Collections Agent > Navigator menu >
Ability to generate and reprint - Statements accessible from Statements
Statements Navigator menu
-Receivables will continue to support For Statement history: Collectors logs in as
Statements Collections Agent > History tab > All history to see
statements

Collector field: Collector field: Log in as Collections Agent

Customers are manually assigned a -New concurrent program
collector in Customer form automatically creates Collector Collector name is displayed in Profile tab
resource in Resource Manager.
Multi Org Access: Multi Org Access: From Collections header > Operating Unit field
- Ability to see across operating - Ability to see across operating units
units - Controlled by User Security Profile
- Controlled by User Security settings
Profile settings
Transaction Details Transaction Details From Transaction tab > Transaction Details button
- Ability to see summary and detail - Ability to view details for specific
for specific transactions on various transactions Collector will able to navigate to Receivables
screens - Ability to submit disputes Transaction Workbench from the Navigator menu.
Not all details are displayed on the transaction details
page.
Payment Processing Payment Processing From Collections Header, payments can be taken
- Ability to take customer credit card from Transaction tab, Aging tab, Account tab by
and Bank EFT payment for one or clicking on the Payment Processing button
more transactions
- Payment note
- Automatic payment authorization via
Oracle Payments module
- Payment record automatically saved
on History tab
Promises to Pay and Promises to Pay and Log in as Collections Agent
Promise Reconciliation: Promise Reconciliation:
- Two fields (amount and date) -Promise to Pay for single or multiple From Collections Header, promises to pay for one or
plus two forecasting fields used to transactions more transactions can be taken from Transaction tab,
manually track likelihood of - Promise note Aging tab, Account tab by clicking on the Payment
collecting on the promise - Automated Promise Reconciliation Processing button where Promise or Mass Promise
process matches promises to tab is accessible
payments.
- Broken Promises automatically
created and posted to Collector Work
Queue for follow up
- Promise record automatically saved
on History tab
Credit Management integration: Credit Management integration: From Collections header > Profile tab to see Credit
-Fields in Receivables display: - Profile tab displays Credit Rating, Risk and Credit Status or Account tab to see
Account Status, Credit Rating, Credit Limit, Credit Status Tolerance
Tolerance, Collectable, Risk Code, -Account tab displays Status,
Review Cycle, Credit and Order Tolerance, Risk Code
Limits
Credit Hold: Credit Hold: From Collections header, with customer name and
-Ability to place an Account on - Collector can turn on /off credit hold contact name displayed > Actions from toolbar >
Credit Hold or remove them from - Enabled through IEX: Enable Credit select Credit hold or Credit release
Credit Hold Hold profile
-Status is displayed in Customer Status is displayed on Profile tab
Profile screen
Calls/Interactions: Calls/Interactions: From Collections header, click on History > AR Calls
- Customer call history is Customer Receivables call history is
displayed displayed

Scheduler: Collection Work Queue From Collections header, click on Task tab to create
- Calls manually scheduled by - New calls can be created manually in new call
collector Tasks tab and will be viewable in
Collector Work Queue
Cash Application: Cash Application: From Collections header > Navigate to > Receipt
Screens being moved to Receipts Collectors will have access to receipt Workbench
Workbench workbench
Presented Bills: Presented Bills: From Collections header > Transactions tab > right
Use Bill Presentment Architecture Use Bill Presentment Architecture click and select View Invoice to launch BPA
Collections Reports: Collections Reports: From Navigator > Reports > select from list
Reports Receivables reports can be added to
Collections Navigator
Notes/Comments: Notes/Comments: Notes are visible throughout Collections on various
Comments/notes fields, related to -New notes can be created in screens
specific transaction Collections’ notes fields throughout Notes tab displays all notes relating to the customer
- New notes are automatically related and customer activities
to party, account, bill to, transaction
and other object types specific to the Collections will display Receivables notes,
activity comments, and special instructions throughout the
application where logically applicable
Concurrent programs: Concurrent programs: Login as Collections Forms Administrator > Submit
Advanced Collections uses a number Request
of concurrent programs to automate
collections processes. See next See Preconfigured Elements Section for list
section for flows

FUNCTIONAL BUSINESS PROCESSES AND FLOWS
The following section contains three flows that show the agent, manager
and system process flows available in Advanced Collections. These
provide a road map on how collections work flows through the
application.
Figure 1 – Collections Agent Flow
Collections Agent Flow

Prioritize Work
Strategy Work Items,

Collector Broken Promises,
Login Work Queue Dunning Callbacks. Select Work
Nodes Tasks,
Delinquent Customers
Header:
View Customer Data
Customer
Contact, Automatic manager
Summary Data notification if no action taken
by action
History Tab: Account Tab: Transaction Tab: Aging Tab:

Profile Tab: All, Adjustment, Notes Tab: Tasks Tab:
Credit, Payments, Account Details, link to Summary, Details/ Summary / Aged Strategy Tab:
Correspondence, Transactions, Assigned/Statusing All Notes Previous, New
Promises, Metrics Customer Standard, Dispute, Adjustments,
Dispute, Interaction, Payment Processing Payment Processing
Payment Processing
Payment, Promise
Update Customer Data
Take Payment;
Take Promise to
EFT Submit Adjustment Submit Dispute
Pay
Credit Card
Record a note or
automatically insert an Update and close Collector Work
Interaction record Queue Nodes
Table 1 – Collections Agent Process
Process Step Description Comment

Prioritize Login Provides secure access to Advanced Collections
Work and based on configuration can restrict the data the
collector can access

Use Provides collectors with a configured list of No more paper reports
Collector’s customers the collector should focus their
Work Queue collection activities on
Use UWQ UWQ provides information in logical groupings, Pre-identified customers at
Nodes this information can be sorted and exported to your finger tips, one click
Excel spreadsheets if required
Select Work The collector will select a customer based on the No more retyping
prioritized work provided within the UWQ and
drill directly into Advanced Collections with the
customer information pre-populated
View Once a customer is selected, the collector can One form to review and take
Customer Data review and take action. Actions include payment, the appropriate action for a
promise, dispute, send correspondence, disposition customer
a transaction, etc.
Update The update customer data processes allow the Automatically push
Customer Data collector to track and manage all collection approvals to the appropriate
activities for a customer. Actions submitted by a persons
collector can launch automated processes that
eliminate the need for manual intervention while
adhering to a company’s collection policies.
Update and The collector can add additional documentation on
Close Record a customer by manually entering notes or
automatically recording interactions activities.
Upon closing the customer record, the system
automatically refers back to the UWQ to get the
collectors next work activity

Figure 2 – Collections Manager Flow
Collections Manager Flow

(Collections Manager
Collector Work
Review Assigned Strategy Collections

Responsibility)
Assignment
Login Ownership Tab Work Items, Review Reassign Work Yes Agent
Assigned Broken Promises
No
End
(responsibility of
Assignment
Administrator)
Collections
Collector
Later Stage
Find Current Collector, Collections Collections
Collector Agent
Assign New/Backup (Bankruptcy,
Reassignment
Collector, Set Start Date Litigation,
Repossession,
Manage Delinquencies
Notification Delinquent
from Agent UI Customers
Summary
Report to
Lease Write Credit Bureau,
Bankruptcies Litigations Repossessions
Offs Third Party
Assignment
Table 2 – Collections Manager Process

Collector Login Provides secure access Advanced Collections
Work
Assignment
Use Manager tool to review and move assigned work
Ownership items, promise activity and customers to assist in
Tab load balancing
Collector Reassign User friendly tool to locate and assign back up
Assignment collectors collector for short term assignments due to
vacation or a leave of absence
Manage Review Specialists view into customers in later-stage of Triage view into customers
Delinquencies Delinquent the collections lifecycle with status of bankrupt, following a critical care
Customer litigation, repossession, Lease write-off or path
Summary reported to credit bureau. Provides at a glance a
way to better understand issues your customers are
having

Figure 3 - Collections System Flow
Collections System Processes

Customer
Update
Data
Score, Strategy or Dispute

Adjustment Payment Take a promise
Dunning
Lockbox process Payment

updates based on Customer/ Payment Processing:
Credit Memo
payments received Receivables Y Authorization Create, Get,
Workflow Request
Data approved Cancel
APIs
Authorization
Message
Y
AR: Refresh
Summary
Table Approved?
Concurrent Programs and Workflows
Compares promise against

payments received. If
payment not received by
Up to five scoring engines can be N promise date, promise
scheduled at one time. broken and promise task in
Delinquency Status Determination UWQ
Rejection
must be run to determine overall
Notification
delinquency.
IEX: Promise
Reconciliation
OPTIONAL:
IEX:
IEX: Purge / IEX: Strategy
Scoring
Score History Management
Engine
Table
Harness
If using Dunning, IEX Strategy IEX: Create
Management would not be run Dunning and
Broken
Send Promise Call
Dunnings for Backs
Workflow Advanced Delinquent
Backgroup Collections customers
Process Data
Table 3 – Collections System Process

Update Customer Advanced Collections seeded standard
Data processes
Run Advanced Collections provides preconfigured Automates the process of
Scoring, scoring engines, strategies and dunning scoring and applying work
Strategies, components and the supporting programs to items based on the
or Dunning insure customers receive the appropriate customers score
Plans communications. The preconfigured data
elements (scores, strategies and work items,
and correspondence templates) can be utilized
by the implementation team or they may
configure new data elements based on the
customers business requirements.

Process The system utilizes the Receivable approval No more transferring
adjustments limits to insure policy is followed and phone calls for simple
processes the adjustments adjustments that collectors
are approved for
Process Payment system is called using the standard No more, “check is the
payments API allowing for real-time collections mail” response. Take the
payment while the
customer is on the phone
Process Collectors can process disputes, which launch
disputes the Receivables Credit memo Workflow
insuring appropriate approval hierarchy is
followed.
Take a Provides the tool to document and follow-up No tickler files, collectible
promise on promises made by customers. Collectors work is pushed to the
can be automatically notified of promises that collector
are not met
APIs Advanced Collections uses all the standard
APIs provided by Receivables and other
applications to automate processes
Concurrent Programs Advanced Collections utilizes concurrent Scheduled jobs insure
and Workflow programs and workflow to process work accurate and timely data is
requests through the system in an automated available for collectors.
manner. These programs would need to be
scheduled by the implementation team to run
based on business requirements. Timely and
accurate information depends on the
concurrent programs being processed at
regular intervals.
COLLECTOR AND MANAGER REPORTS

Advanced Collections users need summary and detail level reports to
support and assess the effectiveness of their collections activities.
Advanced Collections provides a number of reports for collections
agents and collections managers.
From the Navigator Menu, users can access the following reports from
Advanced Collections:
• Campaign Outcome Summary Report

• Collector Outcome Detail Report
• Payment Collector Summary Report
• Payment Collector Detail Report
• Payment Campaign Summary Report
• Payment Campaign Detail Report

• Campaign Schedule or Collector Promise Reconciliation Report
Summary
• Campaign Schedule or Collector Promise Reconciliation Report
Detail
Additionally, users can access a number of Receivables reports that have

been used by collections personnel. These reports can be added to the
collections agent responsibility and be accessible from the Collections
menu:
• Account Status Report

• Adjustment Register
• Aging Reports (6 reports)
• Applied Receipts Register
• Automatic Receipt Batch Management Report
• Automatic Receipt Awaiting Confirmation
• Bad Debt Provision Report
• Billing History
• Billing and Receipt History
• Collections Effectiveness Indicators
• Credit Hold Report
• Customer Credit Snapshot
• Disputed Invoice Report
• Invoice Print New Invoices
• Past Due Invoice Report
• Publish Actual Receipt
• Publish Receipt Forecast
• Receipt Analysis - Days Late
• Receipt Register
• Receipt Awaiting Bank Clearance Report
• Receipts Awaiting Remittance Report
• Remittance Batch Management Report
• Transaction Awaiting Consolidation

Part Two – Migrating to Advanced Collections
PRE-IMPLEMENTATION CHECKLIST
As noted in the Functional Comparison Chart in Part One of this white
paper, Advanced Collections uses a number of other E-Business Suite
products to provide functionality for some features. Please see the
Advanced Collections implementation guide for the optional required
application setup steps.
USING ADVANCED COLLECTIONS’ IMPLEMENTATION CHECKLIST
Functional and technical managers responsible for setting up and
implementing Advanced Collections start the process by navigating to
the Collections Checklist, an setup tool designed to ease implementation
and provide a single place to record and manage operational setup
decisions.
Advanced Collections Checklist

Advanced Collections Questionnaire Page
The Checklist guides the manager through a Questionnaire that asks a
few key questions about the intended use of Advanced Collections. The
manager’s responses to these questions automatically set system profiles
and settings for Advanced Collections.
Advanced Collections Task Page

The Questionnaire also enables or disables a set of Task Pages on which
the manager provides additional detailed information that set additional
settings for Advanced Collections.

The benefit of using the Collections Checklist is that it allows functional
experts to do an ‘out of the box’ set up of Advanced Collections
independent of corporate IT staff.
Since some system profiles used by Advanced Collections come from

other E-business Suite modules, managers will need to use the standard
Forms Profile screen to set these profiles. See Advanced Collections
Implementation Guide for a list of non-Collections profiles
EASY SETUP STEPS FOR MIGRATING FROM RECEIVABLES
For deploying organizations that have decided not to license Advanced
Collections, here are the setup tasks you need to do:
Task Description
Complete Setup Questionnaire and For example, determine operational
Tasks data level, setup Dunning Plan
Configure Dunning Letters (optional) You can use the preconfigured
dunning letters or optionally create
new ones
Install XML Publisher ( if sending Refer to XML documentation
dunning letters)
Run convert script to display See below for additional details
Receivables Scheduled Calls in
Collections History tab (optional)
Evaluate Menu access and Determine how users will access
Responsibilities Collections functionality and reports
Schedule concurrent processes Refer to Advanced Collections User
Guide for detailed information

"The promise of collection Implementing Advanced Collections is facilitated by the use of a number
automation software is a of preconfigured elements that deploying organizations can use during
dramatic improvement in their planning and testing phases. Additionally they can also be used (or
receivables performance.
Indeed, for most companies, the easily amended) for use in production systems. If new elements are
results of automating required to match specific corporate processes, they can be added during
collections are dramatic. They implementation. Detailed information on these preconfigured elements
are enjoying a 10 to 20 percent is provided in the Implementation Guide for Advanced Collections.
reduction in days sales
outstanding (DSO), a 25 Correspondence Templates and Queries.
percent reduction in past due Advanced Collections uses XML technology to generate and deliver all
receivables, and a 15 to 25
percent reduction in bad debt
customer correspondence. Included in the product are the following
reserves. These metrics mean templates and queries that can be used at all operational data levels:
productivity gains, without
increasing staff, that translate • Payment Confirmation Letter
into better cash flow."
• Dispute Confirmation Letter
David Schmidt, Paystream • Promise Confirmation Letter
Advisors, Inc. “Receivables and
Collections: Buyer Guide” • Adjustment Confirmation Letter
• Payment Reversal Confirmation Letter
• Consolidated Invoice Confirmation Letter
• Invoice Letter
• Pre-delinquent Letter
• Soft Dunning Letter 1
• Moderate Dunning Letter 1
• Hard Dunning Letter 1
Metrics Formulas
The following formulas are used in the Profile tab of Advanced
Collections.
• Weighted Average Days Paid (WAP)
• Weighted Average Days Late
• Weighted Average Terms
• Average Days Late
• Conventional Days Sales Outstanding (DSO)

• True DSO
• Collection Effectiveness Index (CEI)
• NSF History Amount
• NSF History Count
• Deductions Amount
• Deductions Count
• Sales
• Credit Limit
• High Credit YTD
Scoring Engines
Advanced Collections includes preconfigured scoring engines.
• Delinquency Status Determination

• Customer Scoring
• Account Scoring
• Bill To Scoring
• Case Scoring (used with Lease Management)
Strategy Templates and Work Items

Advanced Collections provides preconfigured strategy templates and
preconfigured work item templates for deploying organizations using
Collections Strategy as its collections method. Deploying organizations
that have licensed Advanced Collections use strategies and their
associated Work Items. Dunning Plans do not use templates.
• Pre-delinquent Strategy
• Soft Collections Strategy
• Moderate Collections Strategy
• Hard Collections Strategy
• Catch-all Collections Strategy
• Litigation Strategy
• Repossession Strategy
• Write-off Strategy (for use with Leasing)
• Bankruptcy Strategy
Preconfigured work items are also included:

• Pre-delinquency Courtesy Letter
• Pre-delinquency Courtesy Call
• Soft Collections Call 1
• Soft Collections Call 2
• Moderate Collections Call 1
• Moderate Collections Call 2
• Hard Collections Call 1
• Hard Collections Call 2
• Final Demand Letter
• Review Customer
• Customer Site Visit
• Review Pending Bankruptcy
• Review Pending Repossession
• Review Pending Litigation
• Review Pending Write off (for use with Leasing)
MIGRATION CONSIDERATIONS
Since most of the historical data generated in Oracle Receivables is now
accessible in Oracle Advanced Collections, there is no need for deploying
customers to migrate data.
Most flexfields are also accessible from Advanced Collections. However
following analysis of known customer usage, not all fields are displayed.
If these fields need to be displayed, deploying organizations will need to
determine where and how.

APPENDIX 1 – ADVANCED COLLECTIONS SCREEN SHOTS
NOTE: You can click on any link in the Functional Comparison Chart to see a
screen shot of the described feature in this Appendix. Click on the section
name below each screenshot here to return to the Functional Comparison chart.
Collections Navigator Menu
Return to Functional Comparison Chart – Navigator Menu, Single Screen

Navigation
Collections Main Screen
Return to Functional Comparison Chart Section - Single Screen Navigation

Collector’s Work Queue
Return to Functional Comparison Chart Section - Collector’s Work Queue
Profile Tab with Metrics
Return to Functional Comparison Chart Section – Single Screen Navigation

History Tab
Correspondence History
Return to Functional Comparison Chart Section - Dunning Plans

Account Tab
Transactions Tab

Navigate to Transaction Workbench
Return to Functional Comparison Chart Section - Transaction Workbench
Aging Tab

Tasks Tab
Notes Tab

Transaction Details Screen
Return to Functional Comparison Chart Section - Transaction Details
Payment and Promise to Pay Processing
Return to Functional Comparison Chart Section - Payment and Promise Processing

Actions list – Credit Hold
Return to Functional Comparison Chart Section - Actions Menu
Collections Setup Dunning Plans
Return to Functional Comparison Chart Section - Dunning Plans

View Invoice (using Bill Presentment Architecture)
Return to Functional Comparison Chart Section - View Invoice

The following tabs are available if you license Advanced Collections:
Strategy Tab

Lifecycle Tab
Custom 1 and Customer 2 Tabs
The following tabs are available if you license Advanced Collections and either
Oracle Loans or Oracle Lease Management:

Contracts
Case Management Tab

Loans Tab

APPENDIX B –RESOURCES
Product documentation is available from OracleMetaLink. This includes:

Oracle Advanced Collections Implementation Guide
Oracle Advanced Collections User Guide
Oracle Receivables Implementation Guide
Oracle Receivables Reference Guide
Oracle Receivables User Guide
Oracle University provides product training in many formats including

instructor-led classes, customer site training, and online courseware.
Product TOIs are available at time of product release. These provide

functional and technical information for internal users, customers and
partner organizations.
Oracle Advanced Collections
Oracle Receivables
Additionally, internal readers of this whitepaper can refer to

Product Portals
Advanced Collections
Receivables
OracleMetaLink Forum Boards (account required)
Advanced Collections
Receivables
Sales and Consulting sites
Business Flows and Business Flow Accelerators
Global Customers References

APPENDIX C – COLLECTIONS FEATURES FOR ORACLE
RECEIVABLES AND ORACLE ADVANCED COLLECTIONS
A limited version of Oracle Advanced Collections functionality is available in

Oracle Receivables and replaces the Receivables Collections Workbench.
Receivables users who have not purchased a license for Advanced Collections are
not authorized to use the full feature set of this product.
Use the following lists to identify the collections features available for Receivables
and for Advanced Collections.
Collections Features for Oracle Receivables
• Collectorʹs Work Queue
• Search tool
• Collections header and tabs
o Profile with preconfigured metrics
o History
o Account
o Transaction
o Aging
o Notes
o Tasks
• Assign collectors using the AR Collector field
• View collections information by customer, account, bill to, or
delinquency data levels
• Process payments
• Create promises
• Enter disputes and adjustments
• View invoices using Oracle Bill Presentment Architecture
• Run Receivables and Collections reports
• Preconfigured delinquency creation engine
• Preconfigured customer scoring engine
• Configurable dunning tool including dunning correspondence and
callbacks
Note: You perform all dunning activities in Oracle
Advanced Collections. However, Oracle Receivables
provides you with the Dunning Letter Reprint ‐ Historical
Receivables Only program so that you can reprint historical
Days Overdue dunning letters that were sent to your
customers in a previous release of Receivables. Use this
program to conduct collections research for a specific
customer. See: Reprinting Historical Dunning Letters, Oracle
Receivables User Guide.
• Correspondence for disputes, adjustments, reversals, invoices,
promises, and payments

Oracle Advanced Collections Features
Oracle Advanced Collections provides the functionality listed above plus the
following features:
• Configurable scoring
• Configurable strategies and work items
• Configurable segments (database views for use with scoring and
strategies)
• Create collections territories using Territory Manager
• Work reassignment
• Additional Advanced Collections tabs:
o Strategy
o Lifecycle
o Custom 1
o Custom 2
• Tabs available with additional licensing:
o If you use Oracle Loans – Loans
o If you use Oracle Lease Management – Case Management
o If you use Oracle Contracts ‐ Contracts


Migrating to Oracle Advanced Collections: An Overview for Oracle Receivables Customers
01 2007
Authors: Tina Cook, Carol King
Oracle Corporation
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Redwood Shores, CA 94065
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Worldwide Inquiries:
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Fax: +1.650.506.7200
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Copyright © 2005, Oracle. All rights reserved.

This document is provided for information purposes only and the
contents hereof are subject to change without notice.
This document is not warranted to be error-free, nor subject to any
other warranties or conditions, whether expressed orally or implied
in law, including implied warranties and conditions of merchantability
or fitness for a particular purpose. We specifically disclaim any
liability with respect to this document and no contractual obligations
are formed either directly or indirectly by this document. This document
may not be reproduced or transmitted in any form or by any means,
electronic or mechanical, for any purpose, without our prior written permission.
Oracle, JD Edwards, and PeopleSoft, are registered trademarks of Oracle
Corporation and/or its affiliates. Other names may be trademarks
of their respective owners.

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Migrating to Oracle Advanced

Collections: An Overview for

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MOVING TO ADVANCED COLLECTIONS

• Execute proven collections best practices

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KEY CONCEPTS AND DEFINITIONS TO UNDERSTAND

Collections Agent - The person using Advanced Collections to work

Collections Manager - The person who is generally a functional

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Collections Administrator - The person uses the Advanced

Collector’s Work Queue

Bill To Location Site–

Transaction – In terms of operational data level, this is a specific

Scoring Engines and Scoring Components

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Collections Strategy - Compared to Dunning Plans, this collections

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IMPACT ON RECEIVABLES USERS: COMPARATIVE CHART

Functional Comparison Chart

Receivables 11i Advanced Collections r12 Navigation Details and Comments

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Collector field: Collector field: Log in as Collections Agent

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Figure 1 – Collections Agent Flow

Collections Agent Flow

Strategy Work Items,

History Tab: Account Tab: Transaction Tab: Aging Tab:

Table 1 – Collections Agent Process

Process Step Description Comment

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Collections Manager Flow

Review Assigned Strategy Collections

Table 2 – Collections Manager Process

Process Step Description Comment

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Collections System Processes

Score, Strategy or Dispute

Lockbox process Payment

Compares promise against

Table 3 – Collections System Process

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COLLECTOR AND MANAGER REPORTS

• Campaign Outcome Summary Report

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Additionally, users can access a number of Receivables reports that have

• Account Status Report

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Advanced Collections Task Page

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Since some system profiles used by Advanced Collections come from

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• Delinquency Status Determination

Strategy Templates and Work Items

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Return to Functional Comparison Chart – Navigator Menu, Single Screen