Submitting Receivables to Collection Agencies

Objective

After completing this lesson, you will be able to submit receivables to a collection agency

Collection Processing

Diagram showing the submission process to a collection agency. It includes steps like Release Dunning, Release Manual, Write-Off Manual, and ends with creating a submission file.

If a receivable is submitted to an external collection agency, it means that a customer has not paid and that the company is not able to collect it.

After releasing receivables, they're entered in table DFKKCOLL.

Then, the receivables are read from table DFKKCOLL and submitted.

This creates a file for each collection agency, and DFKKCOLL (submission date/amount/status) as well as the document (payment/dunning lock, alternative payer) are updated.

Log entries from the mass run (transaction FP03DM) can be deleted (transaction FP03DML).

FP03 Management of Submitted Items

  • Change submission status

  • Indicator that the receivables were sold to the collection agency

  • Submit receivables

  • Recall receivables

  • Create file of collection items (collected/uncollected, charges, interest)

Diagram illustrating three derivation rules associated with source fields and target fields, detailing conditions for each rule. A legend explains the types of rules, and derivation examples show how sources map to targets.

The derivation rules are defined in customizing (figure above).

The derivation rules are evaluated by function module FKK_COLL_AG_SAMPLE_5060.

The derivation rules determine the external agency step-by-step from a range of source fields.

Flowchart illustrating the processing of submissions, payments, and clear write-offs between different documents and agencies. Key elements include submission files, payment references, and collection agency interactions.

A collection agency has completed a collection order and now forwards a file to the sold-to-party informing them of the receivables that were collected, those that were only partially collected, or those that were not collected at all.

When you submit an item, you can create a payment form that simplifies the assignment of payments to open items. If the file from the collection agency contains collected payments, these can be allocated to the appropriate open items using the payment form number confirmed by the collection agency

If the collection file contains interest and charges, the system posts these as interest and credit receivables and they are passed on to the customer.

You can use the Write-Off Directly indicator of RFKKCOPM to automatically write-off items that have not been collected and are, therefore, irrecoverable.

You can use the Post Collection Charges indicator of RFKKCOPM to post collection charges to be paid as payables to the collection agency's contract account.

You can use event 5068 to determine the charges to be paid to the collection agency.

If the collection agency provides the information (payments, charges, interests) in written form, you can use transaction FPAVI to enter a payment advice note manually

Diagram showing a process where a person at a computer selects options such as Partner Switch, Clearing, Callback, Reversal, Reset Clearing, and Returns, sending information for Collection Agency FPCI, which then passes an Info File to Collection Agency XY.

The collection agency has to be informed about items that are called back and that have been submitted. In customizing, you can specify which information is included in the file for the collection agency.

The information for collection agency mass run (transaction FPCI) enables you to create files for the collection agencies that contain the following information:

  • The master data of one or more business partners has changed.

  • The business partner has directly paid part or all of the outstanding amount.

The program writes items with the following submission status in the file:

  • 10 Receivable Directly Paid by Customer
  • 11 Receivable Partially Paid by Customer

Items that the collection agency cannot recover within a certain period have to be called back. When this happens, the program includes items that have the submission status 09 Call Back Receivable in the file.

In the case of a reversal, returns or the (partial) reset of a clearing, the items in question get the status 02 Receivable Submitted again. You can use the information file to inform the collection agency about the resubmission of items, provided that the collection agency has already been informed of the customer's direct payment.

How to Submit Receivables

DemoStart Demo

Steps

  1. Post an overdue receivable in relation to contract account AC240–##D.

    1. On the SAP Easy Access menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Document → Post (FPE1).

    2. Use the following data to enter the document:

      FieldValue
      Document DateCurrent date — 90 days
      Posting DateCurrent date — 90 days
      Reconcil. KeyProposed by system
      CurrencyEUR (proposed by user parameter)
      Company Code1010 (proposed by user parameter)
      TaxesCalculate automatically

    3. Enter additional data by choosing the New business partner item button.

    4. Enter the following data:

      Field NameValue
      Business Partn.AC240-##D
      Contract AcctAC240-##D
      Transac6000 / 0010

    5. Enter 200.00 in the Amount field.

    6. Select Enter.

    7. Post your document by choosing Document → Post from the menu bar.

  2. Release and submit receivables manually.

    1. On the SAP Easy Access menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Account → Submit for Collection → Release Items for Collection.

    2. Enter/check the following data:

      Field NameValue
      Company Code1010
      Business PartnerAC240-##D
      Items for Submission OnlySelect

    3. Choose Refresh Display, and select the document that was just posted.

    4. Choose Flag for collection order.

    5. Select Manual in the Determination of Collection Agency dialog box.

    6. Choose the ColBP AC240–COL1.

    7. Display the status change in the SubSt column, and use the F1 help for this field.

  3. Manage the submitted receivables.

    1. On the SAP Easy Access menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Account → Submit for Collection → Process Collection Items.

    2. Enter/check the following data:

      Field NameValue
      Company Code1010
      Business PartnerAC240-##D
      Current Collection Items OnlySelect

    3. Choose Refresh Display, and select the released item.

    4. Select the open item from the previous demo step, and choose Submit.

    5. Select Submit Items on the Processing Opts subscreen.

    6. Choose Execute.

    7. Return to the Management of Submitted Items overview.

    8. Display the status change in the SuSt column, and use the F1 help for this field.

    9. Double-click on the corresponding document number to display details.

    10. Choose Business Partner Item, and double-click the item.

    11. On the Payment Data tab, the Pymt Lock Rsn field is set to I - Submitted to External Collection Agency.

Submit Receivables to a Collection Agency

ExerciseStart Exercise

Business Example

The dunning procedure contains the release of receivables to an external collection agency.

Note

In this exercise, the value ## should be replaced with your group number.

Task 1: Execute a Dunning Proposal and Activity Run in One Step

Steps

  1. Start the SAP Fiori Display Account Balance app (transaction FPL9).

    1. Choose the Information tile group.

    2. Choose the Display Account Balance tile.

  2. Display the account of business partner ac240-##d using the following data:

    Initial Data

    FieldValue
    Business Partnerac240-##d
    List TypeALLES All Items
    Line Layout013 Line Item Display

    1. On the initial screen, enter the values from the Initial Data table.

    2. Choose Continue to check the basic list.

      There are three overdue items 6000/0010 displayed.

      The statistical dunning charge 0010/0010 is displayed.

    3. Choose Back twice.

  3. Start the SAP Fiori Dunning Proposal Run app (transaction FPVA).

    1. Choose the Collection tile group.

    2. Choose the Dunning Proposal Run tile.

  4. Execute a dunning proposal and activity run in 1 step using the following data:

    Run Parameters

    FieldValue
    Date IDcurrent date + 30 days
    Run IDDUX##

    Selection Data

    FieldValue
    Business Partnerac240-##d
    Company Code1010

    Dunning Parameters

    FieldValue
    Date of Issuecurrent date + 30 days
    Reconciliation Keyproposed by the system
    Start Current Runselect

    1. In the Run ID area, enter the values of the Run Parameters table.

    2. Select Enter.

    3. On the General Selections tab, enter the values from the Selection Data table.

    4. On the Dunning Parameters tab, enter the values from the Dunning Parameters table.

    5. Go to the General Selections tab.

    6. Check that you have selected only your own business partner ac240-##d.

    7. Choose Save.

    8. Choose Menu → Program Run → Schedule.

    9. In the Schedule dialog box, select Start Immediate and choose OK.

    10. Do not close the combined Dunning Proposal / Activity Run app.

  5. Display the dunning history.

    1. You're still in the Dunning Proposal Run app.

    2. Go to the Logs tab.

    3. Choose Refresh until the dunning proposal and activity run is completed.

    4. Choose Menu → Environment → Dunning History.

    5. On the selection screen, delete the identification DUX##.

    6. On the selection screen, delete the date ID current date + 30 days.

    7. On the selection screen, enter business partner ac240-##d.

    8. Choose Execute.

      You access the Dunning History overview.

      Dunning level 1 and 2 are displayed.

      The Print Date column is filled in both levels.

    9. Choose Back three times.

  6. Start the SAP Fiori Display Account Balance app (transaction FPL9).

    1. Choose the Information tile group.

    2. Choose the Display Account Balance tile.

  7. Display the account of business partner ac240-##d using the following data:

    Initial Data

    FieldValue
    Business Partnerac240-##d
    List TypeALLES All Items
    Line Layout013 Line Item Display

    1. On the initial screen, enter the values from the Initial Data table.

    2. Choose Continue to check the basic list.

      The statistical dunning charge 0010/0010 from dunning level 2 is displayed.

      The statistical interest request 0040/0010 from dunning level 2 is displayed.

    3. Choose Back twice.

Task 2: Submit Receivables to an External Collection Agency

Steps

  1. Go to the SAP S/4HANA system.

  2. Check whether the items have been released for collection (transaction FP03).

    Initial Data

    FieldValue
    Company Code1010
    Business Partnerac240-##d
    Current Collection Items Onlyselect

    1. In the SAP Menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Account → Submit for Collection → Process Collection Items.

    2. On the Manage Submitted Items screen, enter the values from the Initial Data table.

    3. Choose Refresh.

      There are three receivables displayed which have been released for submission.

      Their submission status is 01 Released for Submission.

      Their submission reason is 04 Dunning Activity.

    4. Do not leave the Manage Submitted Items screen.

  3. Submit the items to a collection agency.

    1. On the Manage Submitted Items screen, select all three receivables with status 01.

    2. On the Manage Submitted Items screen, choose Submit.

    3. On the Submit to Agency screen, choose Submit Items as processing option.

    4. Choose Execute.

    5. Check the submitted receivables, which are displayed in a list.

    6. Choose Back three times.

    7. On the Manage Submitted Items screen, the status changed to 02 Submitted.

    8. Double-click one of the three document numbers.

      You access the Display Document: Overview screen.

    9. In the Summarized Business Partner Items table, double-click the amount.

    10. Go to the Payment Data tab.

      The payment lock reason I Submitted to Collection Agency is displayed.

      The collection agency AC240–COL1 as alternative payment partner is displayed.

Task 3: Analyze the Dunning Volume

Steps

  1. Start the SAP Fiori Analyze Dunning Volume app (no transaction).

    1. Choose the Analytics tile group.

    2. Choose the Analyze Dunning Volume tile.

  2. Analyze the dunning volume during the last 12 months.

    1. The Date of Issue selection field is defaulted to Last 12 month to date.

      The dunning volume is displayed per month.

    2. Select the column in the current month.

    3. Choose the View Dunning Notices link.

      A list of all dunned business partners in the current month is displayed.

    4. Choose Back twice.

How to Display Incoming Payments for a Collection Agency

DemoStart Demo

Steps

  1. Display the submitted items from the previous exercise Submit Receivables to a Collection Agency. Note the document number and the amount from the first listed item.

    1. On the SAP Easy Access Menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Account → Submit for Collection → Process Collection Items.

    2. Enter the following data:

      FieldValue
      Company Code1010
      Business Partn.AC240–##D
      Contract AcctAC240–##D
      Current Collection Items Onlyselect

    3. Choose Enter.

      Result

      The collection items are displayed.

    4. Note the Document Number and the Amount of the first collection item.

    5. Choose Back.

  2. Use the report RFKKCOPGGenerate Test File for Collection Agency Payments to create a corresponding payment file.

    1. On the SAP Easy Access screen, enter transaction SA38 in the command field, and select Enter.

    2. Enter the program RFKKCOPG, and choose Execute.

    3. Enter the following data:

      FieldValue
      Name of Target FileN:\My Documents\GR##
      Local File TypeASC
      Write to PCselect
      ApplicationS
      Head
      Collection AgencyAC240–COL1
      Document DateCurrent date
      Bank Clearing Account11100025
      Currency KeyEUR
      Item
      Business PartnerAC240–##D
      Contract AccountAC240–##D
      Trans. Cat. for. Coll. Agency1
      Document NumberDocument number from the previous demo step
      Collection Item1
      Value DateCurrent date
      Payment AmountAmount from the previous demo step
      Number of Items1
      Number of Coll. Agency File1

    4. Choose Execute.

      Result

      The information File N:\My Documents\GR## generated is displayed in the status bar.

    5. Choose Back to display the SAP Easy Access menu again.

  3. Use transaction FP03F to import the test file.

    1. On the SAP Easy Access screen, enter transaction FP03F in the command field, and select Enter.

    2. Enter the following data:

      FieldValue
      Company Code1010
      Read from PC (select)ASC
      Name of Source FileN:\My Documents\GR##
      Name of Payment Lot FileGR##
      Write to PCdeselect
      Test File Onlydeselect

    3. Choose Schedule Payment Lot Posting, and choose Post Payment Lot Immediately.

    4. Choose Execute.

    5. Note the created payment lot key.

    6. Choose Back twice.

  4. Display the created payment lot and its posting.

    1. On the SAP Easy Access Menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Payments → Payment Lot.

    2. Enter the payment lot key from the previous demo step, and select Enter.

    3. Choose the List icon.

    4. Double-click the Lot key to display the details.

    5. Double-click on the Document Number in the Posting Details screen area.

    6. Double-click the entry in the Cleared Items screen area of the Display Document: Overview screen.

      Result

      The item has got the status: Receivable paid.

How to Recall a Submitted Receivable

DemoStart Demo

Steps

  1. Use transaction FP03 to start recalling a submitted receivable.

    1. On the SAP Easy Access Menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Account → Submit for Collection → Process Collection Items.

      FieldValue
      Company Code1010
      Business Partn.AC240–##D
      Contract Acct.AC240–##D

    2. Select Enter.

    3. Select a receivable with a Submission Status of 2.

    4. Choose the Call Back Items icon.

    5. Enhance callback reason "Y1".

    6. Choose Continue.

      Result

      The submission status has changed from "02" to "09".

    7. Choose Back to display the SAP Easy Access Menu.

  2. Use transaction FPCI to create a file for the collection agency.

    1. On the SAP Easy Access Menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Periodic Processing → For Contract Accounts → Submit for Collection → Information for Collection Agencies.

      FieldValue
      Run IDRSR##
      Date IDCurrent date
      IdentificationGR##

    2. Select Enter.

    3. Enter the following data:

      FieldValue
      General Selections
      Business PartnerAC240–##D
      Contract AccountAC240–##D
      Company Code1010
      Additional Selection
      CallbackSelect
      Logs
      Problem ClassAdditional Information

    4. Choose Save.

    5. Choose Schedule Program Run.

    6. On the Schedule Job window, choose Background → Start Immediate.

    7. Choose OK.

    8. On the Logs tab, choose the Application Log button.

    9. Select the entry in the Total column to display further details.

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