SAP Collections Management uses the information from SAP Financials Accounts Receivable in the day-to-day processes through synchronization. Once items are overdue, SAP Collections Management can automate the dunning process by generating communication to the customer based upon the assigned dunning process. SAP's workflow engine can be used to integrate and automate processes between Collections Management and Accounts Receivable. For example, when a certain dunning level is reached, a workflow can be triggered to notify the responsible collector.
The integration between SAP Collections Management and SAP Accounts Receivable helps organizations to streamline their collections processes, reduce days sales outstanding (DSO), and improve cash flow.