Order-to-Cash “To-Be”
Business Process Discussion
Meeting Agenda
• Meeting Objectives
• FMS Order-to-Cash “To-Be”
Business Process
- Sub-Processes
- Activities
- Scenarios
• Discussion
Meeting Objectives
• To discuss ABS-CBN’s
Order-to-Cash “To-Be”
Business Process
• To identify additional
activities / scenarios that
may have to be addressed
Order-to-Cash Process
Master
Data
Maintenance
Order
Processing
Order
Fulfillment
Invoice
Processing
Payment
Collection
Payment
Application
Reporting and Monitoring
Customer Relationship Management
ITS Involvement
Master
Data
Maintenance
Order
Processing
Order
Fulfillment
Invoice
Processing
Payment
Collection
Payment
Application
Reporting and Monitoring
Customer Relationship Management
SAP Involvement
Master
Data
Maintenance
Order
Processing
Order
Fulfillment
Invoice
Processing
Payment
Collection
Payment
Application
Reporting and Monitoring
Customer Relationship Management
Master Data Maintenance
Master
Data
Maintenance
Order
Processing
Order
Fulfillment
Invoice
Processing
Payment
Collection
Payment
Application
Reporting and Monitoring
Customer Relationship Management
Master Data Maintenance
Maintain
Customer
Master
Records
Maintain
Customer
Credit
Records
Maintain
Sales
Material
Records
Maintain
and
Validate
Rates
Design Highlights
• Facility for Customer
profiling / segmentation (if
necessary)
• Single point of contact for
Records Maintenance
• Facility for on-line
monitoring of Master
Records
Design Highlights
• Sales will maintain
Customer Master Records
(basic info)
• Credit & Collections will
maintain billing / credit
information
• Centralized Lotus Notes
database for monitoring
and approving new
Customers
KPIs to be Addressed
• Decrease in the number of
returned Billings / disputed
Invoices
Design Issues
• Clean-up of current master
records
• Availability of personnel to
implement enhancements
in ITS
• Lead time for credit
investigation
Order Processing
Master
Data
Maintenance
Order
Processing
Order
Fulfillment
Invoice
Processing
Payment
Collection
Payment
Application
Reporting and Monitoring
Customer Relationship Management
Order Processing
Receive
and
Verify
Orders
Enter
Orders
into the
System
Design Highlights
• Single point of Order data
entry (down from 3)
• Floor price returned for
checking purposes
• Exception Report for
pricing discrepancies
• Lotus Notes retained for
Program Availability check
Design Highlights
• Use of Debit / Credit
Memos for adjustments
• Retraining of Receiving
Clerks and Encoders
• Facility for future Order
Processing via the Internet
• Potential focus on Sales
Force Effectiveness
KPIs to be Addressed
• Decrease in the length of
time spent on processing
Orders
• Decrease in the number of
data entry errors
Design Issues
• Enforcement of current
ABS-CBN policies
• Speed and availability of
ITS
• Availability of personnel to
implement enhancements
in ITS
Order Fulfillment
Master
Data
Maintenance
Order
Processing
Order
Fulfillment
Invoice
Processing
Payment
Collection
Payment
Application
Reporting and Monitoring
Customer Relationship Management
Order Fulfillment
Generate
Cue Sheets
Generate
Daily
Operations
Log
Air
Commercial
Material
Generate
CP File
Design Highlights
• Bump-offs retained at Cue
Sheet Generation
• National DOL information
available at RNG level
KPIs to be Addressed
• Decrease in the number of
incorrect airings
Design Issues
• Investigation of Louth
System inconsistencies
Invoice Processing
Master
Data
Maintenance
Order
Processing
Order
Fulfillment
Invoice
Processing
Payment
Collection
Payment
Application
Reporting and Monitoring
Customer Relationship Management
Invoice Processing
Prepare
Invoices
Batch
Interface
Between
ITS and SAP
Design Highlights
• Daily generation of
Invoices (Weekly Billing)
• Uploading of ITS Invoices
into SAP SD
• Automatic posting of
Invoices into the
appropriate GL Accounts
• Facility for future e-Billing
Design Highlights
• Invoicing will be based on
actual TO / BO rates
• Debit / Credit Memos will be
used for adjustments
• Finance will coordinate the
handling of Debit / Credit
Memos with Customers and
Sales
Design Highlights
• Organization of a Customer
Service Center (CSC) to
address all disputes /
adjustment requests
• Daily Report on disputed
Invoices
KPIs to be Addressed
• Decrease in the number of
late billings
• Decrease in the number of
returned Billings / disputed
Invoices
Design Issues
• Enforcement of use of
Debit / Credit Memos for
adjustments
Payment Collection
Master
Data
Maintenance
Order
Processing
Order
Fulfillment
Invoice
Processing
Payment
Collection
Payment
Application
Reporting and Monitoring
Customer Relationship Management
Payment Collection
Prepare SA
and
Dunning
Letters
Verify and
Collect
Payments
Accomplish
Collection
Requirements
Forward
Collections
to
Cashier
Design Highlights
• On-line processing of
Statement of Accounts and
Dunning Letters
• Automatic payment record
creation in SAP from Bank
Collections
• Payment - Invoice
matching requirement
Design Highlights
• Facility for future on-line
presentation of Accounts
and Dunning Letters
• Facility for future on-line
payment collection
KPIs to be Addressed
• Decrease in the length of
the Collection Period
• Decrease in the number of
overdue Invoices
Design Issues
• Capability of banks to
provide ABS-CBN required
data and format
Payment Application
Master
Data
Maintenance
Order
Processing
Order
Fulfillment
Invoice
Processing
Payment
Collection
Payment
Application
Reporting and Monitoring
Customer Relationship Management
Payment Application
Post
Payments
into SAP
Process
Deposits
Generate
Collection
Report
Perform
Bank
Reconciliation
Design Highlights
• Automatic application of
payments based on
Invoice Matching routine
• Customized program to
generate a Collection
Report
• Facility for performing
Bank Reconciliation
KPIs to be Addressed
• Decrease in the number of
unapplied / unmatched
payments
• Decrease in the length of
time spent on Bank
Reconciliation
Design Issues
• Multiple depository banks
leading to difficult Bank
Reconciliation
Reporting and Monitoring
Master
Data
Maintenance
Order
Processing
Order
Fulfillment
Invoice
Processing
Payment
Collection
Payment
Application
Reporting and Monitoring
Customer Relationship Management
Reporting and Monitoring
Generate
Reports
Design Highlights
• Automatic posting into
appropriate GL Accounts
• On-line and real-time
viewing of SAP Standard
Reports
• Customized programs for
ABS-CBN Non-Standard
Reports
KPIs to be Addressed
• Decrease in the length of
time spent on posting into
GL Accounts
• Decrease in the length of
time spent on processing
Reports
Design Issues
• Programming
requirements for SAP NonStandard Reports
Customer Relationship
Management
Master
Data
Maintenance
Order
Processing
Order
Fulfillment
Invoice
Processing
Payment
Collection
Payment
Application
Reporting and Monitoring
Customer Relationship Management
Customer Relationship
Management
Receive
Customer
Request
Investigate
Customer
Request
Perform
Necessary
Transactions
Inform
Customer of
Request
Result
Close
Customer
Request
Design Highlights
• Institutionalization of a
Customer Service Center
• Implementation of policies
on handling Customer
Requests
• Facility for future on-line
connectivity with
Customers
KPIs to be Addressed
• Decrease in the length of
time spent on resolving
disputed Accounts
Design Issues
• Manpower and resource
requirements for
implementing a Customer
Service Center
Additional Points
• Sales will be given access to
view Customer Receivables
(balances / line items)
• Disputed items will not be
computed in the Customer
Statement of Account
Questions
• Do you have any questions
regarding any of our
topics?