Transcript Lawson - Corporate Template

M3 Credit Management
MUA – Finance FIG: 24 – 26th February 2008
Julie Wroe
Solution Design
[email protected]
John Chandler
Product Management
[email protected]
A quick reminder … the Lawson Product Lines…
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……with Industry Focus…..
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Financial Management Suite
 Provides a fully integrated and global solution for make, move &
maintain clients to manage their financial flows
 Offers a complete solution for all financial process from daily
processes to year end, such as general ledger, reporting, accounts
payable accounts receivable, budgeting, fixed assets, costing, cost
accounting, inventory valuation and risk management.
 Modules Include:- Budgeting, Accounts Payable, Accounts Receivable,
Current Assets, Fixed Assets, General Ledger, Taxation Management, Group
Consolidation, Cash Flow Management, Cost Accounting, Product Costing,
Multiple Unit Coordination, Risk Management, Report Generator
“For instance, the timeliness of period accounts
has been boosted greatly. For much of the time
now, we get information back on site
performance and financial results around 300%
quicker than was previously possible,”
Adrian Hynds, managing director, Hynds
Pipe
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Figure 4
M3 Financials for our focus industries……
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GA mainstream maintenance countries for M3
M3 5.2, 33 Countries
Lawson for ESM&R 1.1,
M3 7.1, 34 Countries
9 countries (only BU)
 Americas
 Americas
–
USA, Canada, Mexico, Brazil
 EMEA (19 of 27 EU)
–
Austria, Belgium, Denmark, Finland,
France, Germany , Ireland,
Luxemburg, Netherlands, Norway,
Poland, Spain, Sweden,
Switzerland, United Kingdom,
Czech Republic, Italy, Slovakia ,
Portugal, Hungary
–
USA, Canada, Chile, Uruguay,
Bolivia, Argentina
 EMEA
–
United Kingdom
 Asia/ANZ
–
China PRC, Australia
 Asia/ANZ
–
China PRC, Hong Kong, Japan,
Malaysia, Singapore, Thailand,
Philippines, Indonesia, Australia,
New Zealand
Consolidated in Standard
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Global Integrated Financials for IFO’s - Introduction
The order flow
Procurement
S
u
p
p
l
i
e
r
s
Production
planning
Sales &
order
C
u
s
t
o
m
e
r
s
The logistic flow
Receipt
handling
Production
Warehouse/
Distribution
The financial flow
Accounts
payable
Managing the financial flow
General
ledger
Accounts
receivable
Monitor the Performance of other flows
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The Cash Cycle = Financial Supply Chain
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The Cash Cycle = Financial Supply Chain
Days
DSO
57
DIO
42
-DPO (55)
-----------------CC
42
==========
Working capital days
to be funded
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Finance and Smart Office – it’s a simple world
Documents
ERP
Data
Analytics
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Integrated Financials (IFO’s) need three Core Databases
Data
Traditionally ERP systems (such as M3) have always stored
data in a database. The demand has always been to have
more details and the volume of transactions have been
growing.
“Data has taken over versus information”
Document Archive Foundation (DAF) provides storage of
documents in an electronic form. Integration with M3 Smart
Office provides easy accessibility to all document types.
Documents
Through Business Performance Warehouse (BPW) &
Lawson Business Intelligence (L BI) high volume
transactional data is converted into usable information.
Analysis
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Topics to be covered today……..
 Efficient credit monitoring
–
Identifying potential problematic customers (Credit Manager’s Toolbox)
–
Overdue Invoices in date sequence
–
Export to Excel – some options
–
Query handling & action follow-up (Tickler Notes)
 Exception reporting & alerts
–
Eg. Approving a New Customer, Customer Orders on Hold, Queried Invoices
 Automating process flows
–
PFI… an alternative for new customer approval
 Field Audit Trail
–
Tracking key changes
 Document storage and links
–
Customer Documents & Invoices / Credit Notes
 AR Balance Analysis
–
Inc. M3 DSO by Customer example and calculation
 M3 Analytics for Credit Management Performance
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Integrated Credit Control Solution
- What can you do to help your customer pay (faster)
Order/Invoice
Customer
New Customer
Credit limits
 Terms of credit
 Insurance rules
 Reminder rules
 Penalty interest rules
1. Credit Managers’
Tool Box & Portal
- Potential problems

Customer
Evaluation
§
2. AR Documents
- Reminders
- Statements
- Payment advices
- Invoices/Credit notes
3. Monitoring
- Credit limits
- Stop
- Ageing
- Provision
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Credit Managers’ Tool Box
Criteria for Selection: (= warning flags)
–
1. The customer is blocked
–
2. Overdue amount > Credit limit 1
–
3. Outstanding amount > Credit limit 2
–
4. Total engagement > Credit limit 3
–
5. Invoices over due - per due date rule
–
6. Outstanding amount > Insurance limit
–
7. Revised due date overdue by XX days
–
8. The DSO-code has been changed
–
9. Action date for blocked invoices
– 10. Unpaid checks or drafts
Typically, more flags = more cause for concern
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A Credit Managers Dashboard – one screen all options…
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Can tailor process to suit your business –
CMT Example 1 – by credit controller
Credit Managers’ Toolbox – Focus
limited resources early on most
problematic customers
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Drill on an individual CM Toolbox Payer record (in RMS420) – shows
value and number of records affected for each triggered flag(s) …can
hyperlink to see detailed list of invoices affected…
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Detailed list of Overdue invoices shown in due
date order …
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Can also drill from CM Toolbox to Customer a/c, then GL voucher,
payments, notes or invoice & delivery/stock movement records
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On customer record, could define LSO script
buttons to auto-call customer using Skype,
perform Google search on post code to help
validate it, etc … not just show contact info.
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If you run out of comments space…
additional free format text can be used
to support the standard 10 text lines
available
A Tickler Note documents conversations you’ve had with
customer & follow-up actions agreed / required … Action date
enables a “To do” list to be created by payer, credit dept. ref, non
finance user, etc…
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Setting of Customer Credit Limits
Open Order
Value
Open
Invoices
Overdue
Invoices
Credit Limit 1
Overdue
Invoices
Credit Limit 2
Open
Invoices
Overdue
Invoices
Credit Limit 3
Days Past
“Due” Date
(Grace Days)
Credit Limit 4
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A Credit Managers Dashboard – one screen all options…
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Smart Notifications (Operational BI) – alerts with
proactive links back into M3 to help direct the
user to deal with the exception effectively & in a
timely manner
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Example 2 – dealing with orders exceeding
credit limits
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An alternative approach to approving new customers … PFI
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Add your new customer (status 10) & press “Start
Approval” flow
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A message will auto-appear in the In-basket of the
required approver (a specific person or a role) …
The approver can use the buttons above to link through to M3 to check
the new record prior to deciding to press the Approve/Reject button
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Customer is then Accepted or Rejected …
... Status is updated accordingly…
… & email sent to notify sales person of decision
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Field Audit Trail – supporting internal control monitoring
Configure for your chosen file / field combination…
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Press F9 in field you are monitoring (eg. Credit limit 1
on Customer Master file CRS610/J) to see detailed
history of changes
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Filing at your fingertips… AR External Documents
 Recovery (reminder) letters (all invoices v. overdue only)
–
Controlled by user defined rules
–
Linked to multiple (more forceful) reminder letter texts
–
Specify rule (or not) on Customer master file – can treat customers differently
–
Run regularly – proposal/update
 Statement of account (open items v. balance b/fwd)
–
Header/Footer text similar to reminder letters
–
Send regularly and/or upon ad-hoc customer request basis
–
Aging buckets optional
 Payment advice
–
Suggests what invoices are due & should be included in next payment
–
Prints remittance to be returned with payment to aid payment allocation
 Invoices & Credit notes
–
Auto-generated from an order (or invoice) & or manually created in AR
 Documents from your customer
–
Debit notes, Customer complaint letters, signed contracts / POD’s, etc
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Document links can be added to any program to take
the user to the relevant document
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With doc links to DAF images, the
search is context based & hence
only those statements related to
selected Payer are retrieved …
can click on image to see it in full
screen mode.
Alternatively, can use Attribute
search tab to find any docs based
on manually entering your search
criteria
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ARS149PF – Aged Statement of Account
Smart Office enables…
 Drag and drop documents to the Document Archive
–
Drag a document directly from Windows Explorer to an M3 panel
Drag document to
an M3 panel
Select the
document type
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Retrieve the document any time
by right clicking the record
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Document Archive Foundation – Benefits
 Reduced time to search and find the correct document
 Authentication and security permissions included to
ensure a fully secure system
 The use of meta data enables the documents to be reused
across different entities
 Create document links that are:
– Easy to maintain
– Completely meta data driven
– Secure
– Flexible
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Flexible balance file analysis
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Pro-active Debt Monitoring (per Customer)
– average time to pay
Days Sales Outstanding (DSO) Formula:
Outstanding amount (incl TAX)
------------------------------------------------* No of days in period
Average Sales during the period
Used to compare DSO-development versus Sales-development
Days Sales Outstanding – DSO Trend
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M3 - DSO Code Table…….a simple trend check
DSO
Code
0
Average Sales
Average DSO
Comments
Not Applicable – not calculated
1
Has the customer increased purchases
because their credit terms have been
extended – if not, watch closely
2
This worsening trend should be monitored
by the daily CMT process – RMS420
3
Your customer is now paying faster - send
thank you gifts……..!!
4
This could be ok – but is there a reason that
sales to this customer are decreasing ?
5
This worsening trend should be monitored
by the daily CMT process – RMS420
6
Your customer is improving payment times –
is this a settlement discount effect ?
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Another useful AR enquiry… AR Cheque book
…enables you see what invoices were paid
by this customer receipt
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How do I prevent credit issues…
Simple order/contract entry…
Portal approach…
Data attached automatically…
Validation of data…
Wrong information
on the contract ?
He’s just a bad
payer !
Comprehensive credit limits…
Customer stop…
Credit Managers’ Toolbox…
Did I invoice the
correct price…
Automatic price retrieval…
Flexible pricing structures…
Flexible discount structures…
Flexible charge handling…
Automatic delivery
documents…
Receipt confirmation…
Remote data capture…
Electronic signatures…
Why Won’t My
Customers Pay ?
He says he never
received it…
The goods were
faulty…
Exchange handling…
Up-rent & down-rent…
Returns process with auto
credit generation
Service management…
Goods receipt with QI…
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Analyse data to help identify process improvement areas…
Scorecard
Order
statistics
Workplace / Smart Office UI
Dashboards
Financial
Report
Generator
Reporting Services
Standard and
reconciliation reports
BPW
<= Lawson ERP
Smart Notes (alerts)
Lawson BI =>
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What kinds of questions can M3 Analytics answer?
 Sales / Customer Service:
–
Our customers require at least 98% in delivery accuracy. Do we meet /
exceed this level?
–
Do we have problems in certain product segments? Can we find out
why?
 Sales / Account Manager / Product Manager
–
Am I keeping up with my budget in terms of quantities, revenues and
margins?
–
What affects my margins? Price levels, leakages, cost levels
 Financial controlling
–
Are my customers getting better / quicker at paying me?
–
What level of my debtor balance is disputed by customers?
–
How accurate are the invoices that I send my customers?
 Procurement manager
–
How are my suppliers performing in terms of price levels, quality, quantity
and time accuracy?
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What is M3 Analytics?
Predefined KPIs:
- Day Sales outstanding
- Inventory Turnover
- Delivery Performance
- Gross Margin %
- etc...
Pre-configured analytics toolkit:
 Built on M3 - BPW - Specific BMMs/cubes
5 main process areas
Scorecards:
- Sales vs Budget
- Supplier Performance
- Production variances
- Delivery Performance
- Customer debt
- etc...
• Sales
• Finance
• Procurement
• Production
• Warehouse
15 Cubes/BMMs, 50 Scoreboards, 70 KPIs & 3 notifications
Approx. 10 days from install to reaping benefits
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Pre-built Analytical Content - 5 main processes (inc. 15 cubes)
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Std Finance model incl. AR balance & DSO analyses…
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Std Sales model incl. Delivery perf. & Invoice accuracy analyses…
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Sales invoice Accuracy Analysis – financial amounts
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ARC – Adjustments, Returns & Credits…….
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Topics covered today……..
 Efficient credit monitoring
–
Identifying potential problematic customers (Credit Manager’s Toolbox)
–
Overdue Invoices in date sequence
–
Export to Excel – some options
–
Query handling & action follow-up (Tickler Notes)
 Exception reporting & alerts
–
Eg. Approving a New Customer, Customer Orders on Hold, Queried Invoices
 Automating process flows
–
PFI… an alternative for new customer approval
 Field Audit Trail
–
Tracking key changes
 Document storage and links
–
Customer Documents & Invoices / Credit Notes
 AR Balance Analysis
–
Inc. M3 DSO by Customer example and calculation
 M3 Analytics for Credit Management Performance
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For those interested in using ARS225 AR balances….
… I have attached the setup for the 3 highlighted analyses
(column templates) shown today
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Period opening & closing balances with movement
analysed between invoiced & ‘paid’
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Template 010 – Remember =/= equates to right here,
right now (ie. current year and period), 00 = opening
balance for the year and -1 = 1 period/year back
(generally, keep it relative)…
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Credit limit 1 compared to actuals (Overdue amount)
with variance calculated
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Template 011 – Credit limit 1 & Overdue amount should be as
per CRS610/J. Column 3 shows how calculations can be
performed. Note: Less customers were returned with this
template as in next panel, Overdue local amount <> 0 has been
set to remove customers with zero overdue balances, ie.
example of a simple exception report.
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Analyse both DSO days value and assigned
movement code (per slide 43 above)
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Template 012 – In particular, look out for DSO values
greater than your normal credit terms & DSO codes =
2, 5 (sales static/down but DSO up) & possibly 1 (both
sales & DSO up)
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ARS270 – Customer Payment Patterns………over time
To date,1 payment,
Total Value 3,500.00
13 Invoices paid,
100% early or on due date
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ARS090 – Defining ranges for Payment Patterns………
No of days to include when
deciding records for
payment pattern
Definition of 10 specific
ranges of historic payment
pattern
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CRS465 – Reminder Rules……postal days…
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CRS075 – Customer Payment Terms………
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