Collections Methods Setup

This chapter describes the business processes and implementation considerations for setting up your collection methods. It is divided into three sections covering scoring, strategies, and dunning.

This chapter covers the following topics:

• Overview of Scoring
• Score Objects
• Concurrent Programs for Scoring
• Preconfigured Scoring Engines
• Set Up Scoring
• Scoring Components
• Create Scoring Components
• Weight
• Segments in Scoring Engines
• Create or Update a Scoring Segment
• Create New Scoring Engines
• Add Scoring Components
• Set Score Ranges
• Enter Parameters for Function Variables
• Set Up Delinquency Status Score Ranges
• Collections Strategies
• How Strategies Work
• Strategy Checklists
• Segments in Strategies
• Preconfigured Elements for Strategies
• Work Items
• Create Work Items
• Create a Work Item - General Information
• Create a Work Item - Details
• Set Up Correspondence
• Custom Workflows
• Assign Skills
• Create Collections Strategies
• Strategy General Information
• Adding a Strategy Segment
• Scoring Rules
• Add Work Items
• Define Strategy Default
• Default Strategy Resource
• Overview of Using Dunning Plans
• Dunning Process
• Dunning Requirements
• Creating Correspondence Templates
• Dunning Plans
• Aging Bucket Lines for Dunning
• Set Dunning Plan Aging Bucket
• Setting Dunning Level
• Set Collections Dunning Level
• Creating a Dunning Plan
• Create Dunning Plans
• Set Up Universal Work Queue for Dunning Plans

Overview of Scoring

Scoring forms the foundation of your collections activities. Oracle Advanced Collections uses scoring in two ways:

• To determine transaction status: current, delinquent, and pre-delinquent.

  When scoring transactions, Advanced Collections looks at transactions from Oracle Receivables, including invoices, debit memos, and chargebacks; lease invoices originating in Oracle Lease and Finance Management; or loans invoices originating in Oracle Loans. In general, if a customer has delinquent transactions, the customer is considered to be delinquent.

• To determine the value of each customer.

  When scoring to assign customer value, you can use any data point about the customer. Typically you run customer value scoring at an operational data level (customer, account, bill to, or delinquency).

Once you know which transactions are delinquent and you know the relative value of a customer, you can manage delinquencies more effectively with either collections strategies or dunning plans.

Note: The score displayed in the Collections Score field in the Collections header is always the customer-level score.

How Customer Value Scoring Works

Let's say you want to evaluate your customers and select the appropriate collections management method for each. In this example, you want to use three factors to select the collections plan for a customer: how much they owe, how many transaction are overdue, and how long they have been a customer. To find out this information, you create a scoring engine with three scoring components to calculate the following information for each customer:

• The total overdue amount

• The number of delinquencies

• The number of years you have had a relationship with this customer

But how do you use the results of these scoring components to rank your customers? For some components, a high number means you are dealing with a good customer, but in other instances, a low number is better.

• The total overdue amount - low number is better

• The number of delinquencies - low number is better

• How long you have been doing business - high number is better

To qualify the numbers returned by the scoring components, break down the possible numerical results into ranges and assign a value, or score, to each range.

The following tables show the ranges and scores for each scoring component.

Amount Overdue Scoring Component

Amount Overdue	Score
$0 - $999	100
$1000 - $4999	50
$5000 - $9999	25
Over $10,000	10

Number of Delinquencies Scoring Component

Number of Delinquencies	Score
0 - 9	100
10 - 19	50
20 - 39	25
over 40	10

Customer Since Scoring Component

Customer Since	Score
Less than 1 year	10
1 - 2 years	50
3 - 5 years	75
over 5 years	100

However, one type of information about a customer may be more important than another when evaluating which collections activities to use. Let's say that the amount a customer owes is a more important factor than how long they have been your customer or the number of delinquencies they have. You need a way to compare the disparate numbers derived by the scoring components. To do this, assign a weight to each component to indicate its relative importance to the total score. The total weight of all components must add up to 1.0.

The following table shows the weights for the scoring components.

Scoring Component	Weight
Amount overdue	.5
Number of delinquencies	.3
Customer since	.2

Based on this setup, Advanced Collections calculates the score for a customer who owes $18,425 on 9 delinquencies, and has been a customer for 2 years as follows:

(10 x .5) + (100 x .3) + (50 x .2) = 5 + 30 + 25 = 60

You can create new scoring engines or use the preconfigured scoring engines provided by Advanced Collections. In either case, you must test your assumptions by running scoring in a test environment with a small segment of your actual data.

How Transaction Scoring Works

Scoring transactions to determine whether they're current, delinquent or pre-delinquent works the same as scoring for customer value, but with one additional step. A transaction scoring engine with one or more scoring components obtains scores for all transactions. Once the transactions have been scored, you need to set score ranges for the status of either current, delinquent or (if your business rules require) pre-delinquent.

For example, your Transaction scoring engine uses a component that looks at the due date of a transaction and then assigns a status based on the score and the defined score ranges. If the due date for a transaction is greater than today's date, it assigns a score of 1 and the transaction is current. If the due date is less than today's date, score is 100 and the transaction is delinquent. Using the preconfigured Delinquency Status Determination scoring engine, the score ranges are shown in the following table:

Score Range Low	Score Range High	Status
1.00	10.99	Current
11.00	100.00	Delinquent

Related Topics

Set Up Scoring

Score Objects

Scoring calculates a score value for an object in the database. You can score the following types of objects seeded in Advanced Collections, or you can create new scoring objects.

• Party, Account, or Bill To: The operational data level at which you do business with your customers.

• Transaction: A transaction created in Oracle Receivables, or originating in Oracle Loans or Oracle Lease and Finance Management. When determining the delinquency status of transactions, Oracle Advanced Collections creates a delinquency in a Collections table and the status of the transaction on the Transaction tab is shown as Delinquent. When a transaction is paid and no longer delinquent, the status becomes Current..

• Case: A group of leasing contracts for a customer sharing the same bill-to address, private label, and other contract parameters. Case only applies if you use Oracle Lease and Finance Management.

Related Topics

Set Up Scoring

Concurrent Programs for Scoring

• The IEX: Scoring Engine Harness concurrent program runs from one to five scoring engines. Run the preconfigured scoring engines or the scoring engines you create with this program. You can run scoring for a single operating unit or for all operating units.

  You can run the IEX: Delinquency Status Determination scoring engine in the Scoring Engine Harness. This program determines whether a transaction is delinquent or current by running the IEX: Delinquency Management concurrent program. This program calculates the scores and assigns a status. It runs at the transaction level.

  If you set the IEX: Enable Raising Customer Status Change Event profile option to Yes, then an additional program runs called IEX: Raise Delinquency Create Event. This program creates a business event for each transaction that changes status to Delinquent or Current. The business event notifies the applications integrated with Advanced Collections of the changed in status for the transaction. The parameters for the program are Party_ID, COLLECTION_STATUS, ACCOUNT_ID, BILL_TO_ID, PAYMENT SCHEDULE_ID, and DELINQUENCY_ID.

  Additionally, you can identify a non-scoring concurrent program to run with a scoring engine by adding the program name during scoring engine setup. After the Scoring Engine Harness concurrent program runs the scoring engine, it runs the related concurrent program immediately after it scores the invoices, loans, or cases. This streamlines the scoring process and eliminates the need to run related concurrent programs separately from the Request window.

  For example, you can add the Strategy Management concurrent program to a scoring engine which will assign collections strategies based on the score results.

  You can run scoring for a single operating unit or for all operating units.

• Run the IEX: Purge Score History Table concurrent program to purge historical data stored for scoring. For more information about this program, see: Running Concurrent Programs, Oracle Advanced Collections User Guide.

Related Topics

Set Up Scoring

Preconfigured Scoring Engines

Preconfigured Scoring Engines

Advanced Collections provides several scoring engines that can run at every operational data level.

You can use the preconfigured scoring engines to test Advanced Collections in a preproduction environment. You can also use these scoring engines in your production environment if they meet your business requirements.

For a list of available scoring engines, see: Preconfigured Scoring Engines.

Set Up Scoring

Perform the following tasks to set up scoring engines:

• Create Scoring Components

• Create New Scoring Engines

• Add Scoring Components

• Set Score Ranges

• Create or Update a Scoring Segment

• Enter Parameters for Function Variables

• Set Up Delinquency Status Score Ranges

• Verify your scoring engines in a test environment

Scoring Components

The scoring component in a scoring engine uses a select statement or a function to return a score value. For example, a scoring component can determine the total number of delinquencies for a customer or how long a customer has been doing business with your company. Every scoring engine must have at least one scoring component.

The values calculated by a scoring component are then assigned scores based on the ranges of values defined for each scoring component in the scoring engine (defined in Step 2 of Create Scoring Engine). Score range numbers can be positive or negative numbers to two decimal places, and must account for scores from -999,999,999 to 999,999,999. In Oracle Advanced Collections a higher score is generally considered good and a lower score is considered bad.

When creating scoring components, you must specify whether to use a select statement or a function to retrieve data. You will need to have your DBA or other technical staff create the value or code to enter when creating a scoring component.

• Select Statement: A SQL select statement.

• Function: A function must have a minimum of two input variables (object ID and score component ID). The object ID represents the data level scored and can be party_id, cust_account_id, billtositeuse_id, payment_schedule_id, or other database object. The score component ID is the scoring component the function is associated with. Include a result ID in a function if the return value from the function is to be used in the scoring engine.

  Here is an example of a function. In this example, the object ID is p_party_id and score component ID is p_score_component_id.

  FUNCTION simple_score_component(p_party_id IN NUMBER, p_score_component_id IN NUMBER)
  returns number
  is
    l_param_value;
    l_return_value; 
    begin
       select value
       into l_param_value
              from IEX_SCORE_COMP_PARAMS
       where score_component_id = p_score_component_id
          and code = amt_delinquency
       return l_return_value;
    end

  When you create the scoring component, add a call statement for the function. Here is an example of a call statement:

  Call simple_score_component(party_id, :score_component_id) into :raw_score

  You can define parameters for a function to extend its ability to capture data. Parameters are name:value pairs, such as amt_delinquency, 10 or days_past_due, 14. Parameters are stored in the IEX_SCORE_COMP_PARAMS table. You can identify parameters for any or all of the function scoring components you add to a scoring engine. On the Parameter tab in Step 2 of Create Scoring Engine, enter the name of the parameter in the Code field and the value for the parameter. Once you define function parameters, you can easily update a scoring engine by changing the parameter values.

  In the function example above, amt_delinquency is the function parameter.

  Note: To successfully use a function scoring component in a scoring engine, be sure to:

  • Create the function in the database

  • Create a scoring component and add the Call statement.

  • Create a scoring engine and add the component to the engine.

  • On the Parameters tab, define the parameters for the function.

Related Topics

Create Scoring Components

Enter Parameters for Function Variables

Create Scoring Components

Uses

• Create or update scoring components used in scoring engines.

Definitions

Term	Definition
Scoring Component	A select statement or function that returns one numeric value from the database based on existing information.
Object	The database entity to be scored.
Function	Indicates if the scoring component uses a function call to derive a value.

Related Topics

Scoring Components

Preconfigured Scoring Components

Overview of Scoring

Frequently Asked Questions

What does a scoring component do?

When a concurrent program runs a scoring engine, the scoring component derives a value for the object being scored. A scoring component calculates an answer to a business question, such as "How many delinquencies does this customer have?" or "How long have I been doing business with this customer?"

Who creates scoring components?

The Collections Administrator creates scoring components.

Are there any prerequisites?

If you are creating new scoring components, you must know how to create SQL statements and functions.

What objects can I score?

You can select any object in the Oracle database or other database, but typically, you will score transactions or operational data level objects, such as customers, accounts, or bill to locations.

Note: To score customers, select Party as the object and not Collection Customer.

Why do I have to indicate if the scoring component is a function?

Advanced Collections performs different operations with functions and select statements but cannot recognize the difference on its own. If you enter a function but do not identify it as a function, your scoring component will fail to retrieve the appropriate information. For more information about functions, see: Scoring Components.

Weight

Optionally, each score component is assigned a weight. All active score components for a scoring engine must add up to 1.0. Weight determines the relative importance of each scoring component. For instance, a score may be based on both "what year did the customer relationship start?" and "how many overdue payments does this customer have?" Since it's more important to consider the number of delinquencies over the years that someone has been your customer, the overdue payments component has more weight. The score component is multiplied by the assigned weight.

If weighting is not used, the raw score is used.

Related Topics

Add Scoring Components

Set Score Ranges

Segments in Scoring Engines

Advanced Collections uses segments to limit the scope of a scoring engine and improve system performance. Each scoring engine must have an associated segment. Segments create a subset of records, or view, in the database to score against. For example, a collections organization could run scoring for a segment of all customers, or it could create a segment to limit customers by variables, such as country, annual revenue, or disputed transactions. Scoring engines use segments to optimize performance, score groups of customers differently, and support operations in different regions around the world. For example, you can process Australian invoices when it is nighttime in Australia and United States invoices when it is nighttime in the US.

Every scoring engine must have a segment. Your database administrator creates a subset of the database called a view based on a PL/SQL query or a function. Then your Collections Administrator creates a segment, associates it with a database view, and then adds the segment to a scoring engine.

Related Topics

Create or Update a Scoring Segment

Create or Update a Scoring Segment

Uses

• Create or update a scoring segment for a scoring engine.

Definitions

Term	Definition
View Name	The name of the database view used to limit the data to be scored. View names must begin with IEX_F_and end in _V.
Column Name	A column in the database view that stores the ID key for the object being scored.

Related Topics

Overview of Scoring

Create a Scoring Engine

Frequently Asked Questions

What does a segment do?

A segment enables the scoring engine to look at a segment or view of the database. Segments limit the scope of a scoring engine and improve system performance.

Does every scoring engine have to have a segment?

Yes. You must create a segment for a scoring engine.

Are there any prerequisites?

A scoring engine must exist.

Your database administrator must create a database view if existing views are not appropriate.

Who can create a segment?

The Collections Administrator can create new segments.

Are there any guidelines?

The view name must begin with IEX_F_ and end with _V. The view must be created in the APPS schema (the Database owner of the object must be = 'APPS').

The data type of the column name must be a number.

The view must have a column for the ID of the object being scored as shown in the following table:

Object Being Scored	Object ID
Customer	Party_ID
Account	Cust_Account_ID
Site	Site_Use_ID
Invoice	Payment_Schedule_ID
Delinquency	Delinquency_ID
Case	Case_ID

Are there any seeded views for scoring?

Yes. Advanced Collections provides the following seeded views:

• IEX_F_ACCOUNTS_V - Used to score customer accounts

• IEX_F_BILLTO_V - Used to score based on customer bill-to information

• IEX_F_CASES_V - Used for Leasing

• IEX_F_DEL_CASES_V - Used for Leasing

• IEX_F_PARTIES_V - Use to score customer/party

• IEX_F_SCORE_INVOICES_V - Used to score payment schedules and determine if they are delinquent

What does the Test button do?

Click Test to test the scoring engine with your new segment. Advanced Collections displays the number of records the scoring engine will score using this segment.

Create New Scoring Engines

Uses

• Create a new scoring engine.

Definitions

Term	Definition
Type	The database entity to be scored.
Concurrent Program	The name of an additional batch process that runs with the scoring engine. Use the IEX: Delinquency Status Determination concurrent program to determine the status of transactions.
Segment	A segment enables a scoring engine to run against a subset or segment of the database. Segments are required for scoring engines.
Weight Required	Check this box if you want to indicate the relative importance of two or more scoring components in a scoring engine. See: Scoring Engine Details. If not checked, the scoring engine simply adds the raw scores together to calculate the score.
Score Range	The highest and lowest expected scores.
Out of Range Rule	If a score value falls outside the expected score range, this setting tells Advanced Collections what score value to use in its place. If you select Closest, Advanced Collections assigns the closest valid score number. If you select Farthest, it assigns the farthest valid score number.
Used To Determine Status	Check this box if you want the scoring engine to determine the collections status of transactions. Status can be current, delinquent, or optionally, predelinquent.

Related Topics

Overview of Scoring

Add Scoring Components

Concurrent Programs, Oracle Advanced Collections User Guide

Preconfigured Scoring Engines

Frequently Asked Questions

Are there any prerequisites?

Set up new scoring components if you are not using preconfigured components.

Do I have to create scoring engines?

No. You can use the preconfigured scoring engines if they meet your business needs.

Oracle Advanced Collections has eight preconfigured scoring engines. You cannot delete or change these scoring engines. You can copy existing scoring engines and modify them, or create new ones.

For a list of scoring engines, see: Preconfigured Scoring Engines.

Where does Advanced Collections use scores?

Advanced Collections uses scores to determine the delinquency status of each transaction and to determine the relative value of customers. Strategies and dunning plans then use the customer value score to execute appropriate actions for delinquency or pre-delinquency situations.

Why should a scoring engine have an Out of Range Rule?

If a score result is not within the score range of a scoring engine, then the Out of Range Rule tells Advanced Collections how to convert the score to be within the defined range.

For example, a scoring engine has a score range of 1 to 200 and the Out of Range Rule is set to Farthest. If the scoring engine scores a customer at 205, then that score will be converted to 1 and be within the range of the scoring engine.

What is the recommended best practice for working with scoring engines?

You should test all scoring components and scoring engines in a test environment using a portion or all of your production data. Once you are satisfied with the scoring results and performance, you can move your tested scoring engines to your production environment.

What is the next step?

Once you create a scoring engine, you can add and configure the components and then add a filter. See: Add Scoring Components.

Add Scoring Components

Uses

• Add scoring components to a scoring engine.

Definitions

Term	Definition
Weight	Weight assigns the relative importance of each component in a scoring engine. The total weight for all scoring components in a scoring engine must = 1.0. Using weights is optional.
Component Detail	A link to the Score Components Details page where you define ranges and associated score values for a scoring component.
Parameter	A parameter is a value used in a function to generate a result.

Related Topics

Overview of Scoring

Create Scoring Components

Set Score Ranges

Frequently Asked Questions

Are there any prerequisites?

A scoring engine must exist.

Scoring components must exist.

Who can add scoring components?

The Collections Administrator.

How do I know how the weights will affect the scores?

To understand how weights will affect your scoring results, run all of your scoring engines in a test environment using a subset of your actual data. This will let you test your assumptions and verify that you are getting the desired score results.

What should I keep in mind about weights?

• You must enable a scoring component before you can set the weight.

• Use decimals and not whole numbers.

• If you are using weights, all weights must add up to 1.0.

See: Weight.

Set Score Ranges

Uses

• Set up score ranges for a scoring component.

Related Topics

Overview of Scoring

Create Scoring Components

Frequently Asked Questions

Are there any prerequisites?

A scoring engine must exist and must have components assigned to it.

Who can set score ranges?

The Collections Administrator.

What range of numbers can I use for score ranges?

Score range numbers can be positive or negative numbers to two decimal places, and must account for numbers from -999,999,999.99 to 999,999,999.99.

How do I enter the score ranges?

Advanced Collections defaults -999999999.99 for the beginning Range Low value and 999999999.99 for the Range High value. Simply enter the Range Low value for each row you need and Advanced Collections will default the Range High value for you to ensure all numbers are contiguous and do not overlap.

Enter Parameters for Function Variables

Uses

• Enter parameters for function variables used in scoring components.

Definitions

Term	Definition
Code	A variable that is part of the code for a function.

Related Topics

Overview of Scoring

Create Scoring Components

Frequently Asked Questions

Do I always enter parameters for a scoring component?

No, entering parameters is optional. You can only enter parameters if the scoring component uses a function. If you define parameters for a function then you can easily update a scoring engine by changing the parameter values when needed rather than having to create a new scoring engine. Advanced Collections stores parameters as name:value pairs.

Who can enter parameters?

The Collections Administrator.

Are there any prerequisites?

A scoring engine must exist and must have a scoring component that uses a function.

Are there any restrictions if I am using Oracle Lease and Finance Management?

The Case Scoring engine uses a function. You cannot change the parameters for the Case Scoring engine, used for scoring leasing invoices. You can, however, copy that scoring engine and change the parameters for it.

Set Up Delinquency Status Score Ranges

Uses

• Define the score ranges that determine the status of a transaction.

Definitions

Term	Definition
Status	Identifies whether a transaction is current, delinquent, and optionally, pre-delinquent.

Related Topics

Overview of Scoring

Create New Scoring Engines

Frequently Asked Questions

What if I only use the preconfigured scoring engine, Delinquency Status Determination?

If you use a preconfigured delinquency scoring engine, such as Delinquency Status Determinations or Case Scoring, then you do not have to set up delinquency status score ranges.

What types of status can Advanced Collections assign?

If you run the preconfigured scoring engine, IEX: Delinquency Status Determination, to determine delinquency status, Advanced Collections assigns a status of Current or Delinquent to transactions. If you are using Oracle Loans, it can also assign a status of Active or In Default. If you want to be able to assign the status to Pre-Delinquent, then you must create a new scoring engine to determine delinquency status. Best practice recommendation is to copy and modify IEX: Delinquency Status Determination. Be sure to include the IEX: Delinquency Management concurrent program as part of this scoring engine.

If you want to be able to assign the status Pre-Delinquent, then you must create a new scoring engine to determine delinquency status. Best practice recommendation is to copy and modify IEX: Delinquency Status Determination. Be sure to include the IEX: Delinquency Management concurrent program as part of this scoring engine.

Are there any prerequisites?

A scoring engine must exist and must have a scoring component.

You must use the IEX: Delinquency Status Determination concurrent program.

Who can set the delinquency status score ranges?

The Collections Administrator.

Can I modify the score ranges in the preconfigured Delinquency Status Determination scoring engine?

No, but you can copy the Delinquency Status Determination scoring engine and modify the copy.

What range numbers can I enter?

Enter range numbers from -999,999,999.99 to 999,999,999.99.

How do I score transactions as pre-delinquent?

To be able to determine which transactions are pre-delinquent, you must create a new scoring engine for status determination with score ranges for current, delinquent and pre-delinquent statuses. The easiest way to do this is to make a copy of the Delinquency Status Determination scoring engine and modify it.

Note: You can only run strategies for pre-delinquent transactions at the transaction level.

What does the Payment Schedule Delinquency Determination scoring component do?

This scoring component looks at the database to identify transactions as current or delinquent. For all payment schedules (an Oracle Receivables term for the payment due date of an invoice) that are due before the current date, have no disputes, and have a remaining balance greater than zero, it assigns a score of 11.00 to 100. These are delinquent transactions. For all other payment schedules, it assigns a score of 1.00 to 10.99. These are current transactions.

What happens if a transaction moves from Delinquent to Pre-delinquent or from current status?

Advanced Collections will update the status of delinquent invoice to revised status whenever the IEX: Delinquency Status Determination concurrent program is run.

Collections Strategies

Use collections strategies as an alternative to dunning plans, to automate the collections management process and support complex collections activities. Strategies can be used to recover delinquent transactions such as invoices from Oracle Receivables, cases as identified by Oracle Lease and Finance Management, or loan transactions from Oracle Loans.

Note: Use either strategies or dunning plans to manage your delinquencies, but not both methods.

A strategy is a series of manual or automated tasks, known as work items, linked together in the order in which they will be executed. Each work item is a collection activity to recover a delinquency, such as making a phone call or sending a letter, and can be reused and included in many strategies. A strategy is associated with a collections object, such as customers or accounts. The collections object is the data level you do business at.

Strategies leverage the information from the Oracle Advanced Collections scoring engines that identify delinquent transactions and rank delinquent objects. Based on the score results, the Strategy Management concurrent program assigns appropriate strategies to the collections objects. When a strategy runs, it uses:

• Oracle Workflow to initiate and manage work items, and to send notifications to designated personnel

• Oracle Human Resources to identify the best collector or specialist for a work item based on the skills required to complete the work item

  Note: You need to have the full installation of Oracle HRMS for strategies to use skills, but you can create strategies without skills on a shared Oracle HRMS deployment.

• Oracle XML Publisher to send correspondence

• Oracle database views to create segments for strategies to target groups of similar customers or transactions

• Oracle Universal Work Queue to display the collector’s work item assignments

Earlier, strategies could be run at one level per install (either at party level or at account level or at bill to site level or delinquency level) based on the operational setup in the Collections Checklist using the Collections Administrator responsibility. Now, you can assign different levels to different parties and run strategies at different Operating Unit Levels. You can run strategies at multiple levels and view UWQ at different operating units levels for different nodes (Delinquencies, Broken Promises and Strategy Work items nodes) and also run strategy management concurrent program for different levels of parties and different operating units.

The Collections strategy is derived and assigned from the Scoring Engine components when the Strategy engine is run based on the Operating Unit parameter. Strategy Management concurrent program runs to assign work items based on score of delinquent invoices and tracks the strategies that are in progress. The program then compares the object's score with available strategies ranks and assigns appropriate strategies. It also creates work items in active strategies.

The operational level setup in the Checklist allows you to override system level defaults for each party in the collections workbench. The collection agent can default the strategy level (either at party level or at account level or at bill to site level or delinquency level) for each operating unit by mapping levels with each operating unit level in operational setup.

To set up and use strategies, complete the following Checklist tasks:

• Create Work Items

• Create Collections Strategies

• Define Strategy Defaults

Related Topics

How Strategies Work

Strategy Checklists

Preconfigured Elements for Strategies

How Strategies Work

After creating delinquencies and scoring collections objects, run the IEX: Strategy Management concurrent program to select a strategy for each delinquent object. Each strategy is ranked based on the score it applies to. This rank determines how hard (aggressive) or how softly the strategy treats delinquent customers. For example:

• Strategy 1 (soft) has 4 work items:

  1. Send reminder letter

  2. Make call

  3. Make call

  4. Send dunning letter

• Strategy 2 (hard) has 3 work items:

  1. Send dunning letter

  2. Make call

  3. Make tougher call

For these strategies let’s assume that a higher rank (score) means a softer strategy. We designate Strategy 1 to apply to a score of 50 and Strategy 2 to be used for a score of 30. If the Strategy Management program doesn’t find a strategy to match the exact score, it assigns a more aggressive (harder) strategy. If the delinquency score returned by the scoring engine is 35, then the selection module in the program looks for strategies ranked 35, and if not found, looks for 34, then 33, and so on. In this example, the program assigns Strategy 2 to the delinquent object.

Strategies can also use segments to apply a strategy only to a specific group of customers or collections objects. The selection module verifies the segments associated with the strategy before assigning work items. Let's assume that Strategy 2 applies for the following conditions:

1. Delinquencies in the US

2. Delinquencies of customers in a particular industry

3. Delinquencies greater than $1,000,000.00

All conditions must be satisfied in order to assign Strategy 2.

You can create segments to suit your business. Other typical segments are based on country (France has one set of collections rules and Germany another) and customer industry type (large hospitals with large revenue potential are treated differently than small grocery chains).

See also: Changing Strategies Based on Tolerance.

Related Topics

Collections Strategies

Strategy Checklists

Changing Strategies Based on Tolerance

When you create a strategy template, you can designate if you want its strategies to change dynamically if the score of the data level object changes within a predetermined range or tolerance. Then when you run the IEX: Strategy Management concurrent program, Advanced Collections automatically assigns a different strategy from the template to the object if the score for the object changes beyond the minimum tolerance set for the strategy template.

Note: If you change a strategy and not all of the work items for that strategy have been executed, then those work items that have not yet been executed will change with the strategy.

Tip: When you run the IEX: Strategy Management program, if you set the Ignore Change Strategy Switch parameter to Yes, then the program will ignore any Change Strategy settings in the strategy templates and will not change strategies when scores change. Since changing strategies dynamically requires system resources, run the Strategy Management program only periodically with this parameter set to No.

Changing Strategies Example 1

Strategy template has 4 strategies with minimum applicable scores of 60, 40, 20, and 10.

Tolerance for strategy template is 10.

Customer score is 30 and strategy 20 is assigned.

The scoring engine runs and customer score changes to 41. The strategy management concurrent program assigns strategy 40 to the customer automatically because the score changed more than the tolerance of 10.

Changing Strategies Example 2

Strategy template has 4 strategies with minimum applicable scores of 60, 50, 20, and 10.

Tolerance for strategy template is 10.

Customer score is 30 and strategy 20 is assigned.

The scoring engine runs and customer score changes to 41. The strategy management concurrent program looks for a new strategy to apply to the customer because the score changed more than the tolerance of 10. However since it looks for a strategy at or lower than the customer score, it can only apply strategy 20. Even though the customer score changed more than the tolerance, strategy 20 still applies.

Related Topics

How Strategies Work

Running Concurrent Programs, Oracle Advanced Collections User Guide

Strategy Checklists

A checklist is an optional list of manual tasks that can be referred to during the execution of a strategy. A checklist provides a more detailed list of items that collectors and specialists should be aware of, but that are not work items driven by the strategy. For example, you create a bankruptcy strategy with a work item named Contact debtor's attorney and then add a checklist of additional items to the strategy. The checklist items are 1) confirm debtor has filed; 2) confirm retainer fee has been paid; 3) capture the firm and counsel's name. The checklist guides the user to complete the tasks that are not specific work items.

Create checklists in a similar fashion as strategies and assign to a strategy when the strategy template is created. The strategy engine does not execute work items from checklists.

To create and use a checklist:

• Create work items. Use the Configure Work Items flow to create manual work items for your checklist. Use the description field to provide additional information for the task.

• Create a checklist. Use the Create Collections Strategies flow to set up a checklist. Make sure to identify it as a checklist and enable it. Checklists do not use segments or score components. Add the checklist work items.

  Note: Include the word 'Checklist' in the name to distinguish it from strategies.

• Associate the checklist to a strategy. When you create or update a strategy, add a checklist in the General Information step.

Related Topics

Collections Strategies

Segments in Strategies

Use a segment to limit your strategy to a subset of your database, such as all customers in a specified country. Creating a segment for a strategy is optional.

Oracle Advanced Collections uses segments with:

• Scoring engines - to identify the universe of customers to be scored, and to improve scoring engine performance

• Strategies - to determine which segment of the database the strategy applies to

Specifying a segment for a strategy means that conditions must be satisfied in order to run the strategy. The Strategy Management concurrent program first determines if a strategy has a segment. If it does, the collections object must be part of the segment, or database view, in order for the program to assign the strategy.

Related Topics

Adding a Strategy Segment

Collections Strategies

Preconfigured Elements for Strategies

Oracle Advanced Collections includes preconfigured elements for strategies that you can use during implementation to test your setup. You can also use these elements in your live production environment if they match your business needs, or copy and modify them.

For a list of strategy elements included with Advanced Collections, see: Preconfigured Strategy Templates, Preconfigured Strategy Work Items, Preconfigured Workflows for Strategy Work Items.

Related Topics

Collection Strategies

Work Items

Each strategy is made up of one or more work items. A work item is a task to be executed manually or automatically and is driven by a workflow. The workflow notifies the collector to perform a task or initiates the automatic process. Every work item has an associated workflow.

Work items are grouped by work type:

• Manual: a task to be completed by a collector or specialist. It is displayed as an entry on the Strategy Work Item node in Collector’s Work Queue. It can be sorted by priority and other methods. When completed, the work item is removed from the queue. Manual work items include a personal visit, phone call, and review tasks.

• Automatic: a task completed by an automated process. This group includes tasks such as sending e-mails, faxes, or sending documents to be printed.

• Workflow: a custom workflow that initiates an automated task not performed by a preconfigured workflow.

As a strategy runs:

• A work item is assigned to a resource based on the parameters of the work item, such as skills required to complete a work item, or ownership of the customer by the collector. If a manual work item requires specialized skills to execute, then the work item can only be assigned to a resource with those skills.

• Automatic work items are executed by the system running a workflow associated to the work item template. Once the work item is assigned, the owner can see its details. In addition the user can change the date limit for execution of a future work item.

  Viewing Strategies for a Customer, Oracle Advanced Collections User Guide

If no other resources are available, the strategy assigns a work item to the default strategy resource identified on the Define Strategy Default task page. See: Default Strategy Resource.

You can search for work items based on work types and categories.

Use the Work Item Task pages to create or update a work item. Advanced Collections displays a series of "train stations" to guide you through the process.

• General

• Work Item Details

• Correspondence

• Assign Skills

• Review

Related Topics

Add Work Items

Collections Strategies

Using Custom Workflows

Create Work Items

Work Item Details

When creating a work item, add a wait time if you want to schedule the work item to start after a specific time interval. The Strategy Management program can wait before or after a work item executes, to initiate the next work item. For example, if you want to allow five days after sending a polite reminder to a customer before scheduling a follow-up phone call, then add a 5 day pre-wait detail when you create the phone call work item. You can also add wait time after a work item executes. Wait times are part of work items, not strategies.

You can specify if a work item is optional. If not completed by the collector, an optional work item closes automatically at the end of the time period specified, and frees up the strategy to initiate the next work item. Optional work items can have pre-wait or post-wait times.

You can also specify to escalate a work item from the collector who owns it to a manager, if not completed on time. You can escalate only manual work items.

On the Strategy tab, collectors can view work item details by clicking the Details button.

Work Item Status

As a strategy runs, the status for each work item updates.

• To Be Created: Work item not yet created.

• Pre-wait: Status of a work item when created by the Workflow Background Process if a pre-wait is assigned. Collectors cannot work on a work item at this point, except to cancel the strategy or close the delinquency. When Pre-wait expires, the work item status changes to Open and the collector can execute the task.

• Created: Work item created by Workflow Background Process.

• Open: Work in progress.

• Skip: Work item was skipped.

• Time-out: Assigned collector didn't assign work item before optional wait time expired.

• In Error: Problem occurred sending out correspondence.

• Closed: Work item no longer needs to be performed because related delinquency has been paid in full.

• Canceled: Strategy switched and work item no longer needs to be performed.

• Complete: Work item task has been completed by collector.

Using Custom Workflows

If the preconfigured workflows do not meet your needs, create a custom workflow. Oracle Advanced Collections provides a preconfigured workflow, IEX: Strategy Custom Work Flow (IEXSTRCM), that you can use as a template.

Warning: You must copy, modify, and rename this workflow. Do not add IEX: Strategy Custom Work Flow to a work item.

IEX: Strategy Custom Work Flow

The figure above shows the process defined for the IEX: Strategy Custom Work Flow.

Note: The WAIT step in this process is an internal workflow wait time for load balancing. It is not the same thing as a pre-wait or post-wait time you add to a work item. When you copy and modify this workflow, do not delete the WAIT step.

Your system administrator or DBA can modify this workflow process by following the general steps below.

Creating a Custom Workflow

1. Copy IEX: Strategy Custom Work Flow.

2. Rename the copy.

3. Using Oracle Workflow Builder, modify the workflow based on your business needs.

   Attibutes: Add additional attributes as needed. Do not remove any attributes from the workflow.

   Messages: Add or customize messages. Do not delete the messages or the workflow will not run properly.

   Processes: Customize the process @ strategy custom work flow and rename. Process names cannot contain a colon (:).

4. Load the customized workflow into the database.

5. Select and add your new workflow in Step 3 of the Create Work Item task, Collections Checklist.

6. Add the name of the new custom workflow to the Work Flow Background Process as a new item type to schedule the workflow to run.

For more information, see: Oracle Workflow Developer's Guide.

Related Topics

Work Items

Collections Strategies

Correspondence

Oracle Advanced Collections uses Oracle XML Publisher to deliver all correspondence to your customers. For a description of this process, see: Set Up Oracle XML Publisher.

Correspondence is sent either as confirmation when a collections activity is complete or as part of a work item in a strategy. You can designate whether correspondence is sent automatically or manually.

Whether you use preconfigured templates or create new templates, you identify specific templates to use for confirmation letters and invoice copies in the Set Up Correspondence task of the Collections Checklist. For correspondence associated with strategy work items, such as collections letters, select a correspondence template when you create a work item.

You can view any correspondence which is sent through e-mail/fax/print using the View Requests option. In the Request window, select IEX XML Generated and Delivery request and click View Output. Use this navigation flow only when Oracle XML publisher is being used for printing and not Oracle Fulfillment.

You must also identify a dunning contact for each customer or other data level that you collect for. See: Designating Customer Contacts, Oracle Advanced Collections User Guide.

Related Topics

Preconfigured Templates in Oracle XML Publisher

Set Up Oracle XML Publisher

Create Oracle XML Publisher Templates

Create Work Items

To create or update work items, complete the steps in the Create Work Items flow which you can access from the Collections Checklist or from the Create Work Items tab.

To create a work item:

• General Information

• Set Up Details

• Set Up Correspondence or Custom Workflows

• Assign Skills

• Review

Related Topics

Work Items

Create Collections Strategies

Collections Strategies

Create a Work Item - General Information

Uses

• Add basic information for new work item.

Definitions

Term	Definition
Work Type	Indicates the type of work item and how it executes, such as Manual, Automatic, or Workflow.
Category Type	Indicates the subcategory of work type.

Related Topics

Create Work Item - Details

Work Items

Frequently Asked Questions

When should I enable a work item?

You must enable a work item to add it to a strategy. Disable a work item when it is no longer used. You can delete a work item only if it is not part of any enabled or disabled strategy.

Can I create additional work types and category types?

No.

What happens if I select the Notify check box?

If you select Notify, then Oracle Workflow sends an e-mail notification to the collector that a work item has been assigned.

How do I add a custom workflow to a work item?

For Work Type, select Workflow. Then in Step 3, search and add the custom workflow to the work item. To learn how to create a custom workflow, see: Using Custom Workflows.

Create a Work Item - Details

Uses

• Add work item wait times, make work item optional, or escalate a work item.

Related Topics

Create Work Item - General Information

Set Up Correspondence

Custom Workflows

Work Items

Frequently Asked Questions

When should I add a wait time?

Add a wait time if you want the Workflow Background Process to wait to execute a work item.

Does it make sense to add wait times before and after a work item executes?

No. For efficiency and consistency, use one or the other when creating work items. Then when you plan the work items needed for a strategy, you can logically determine which work items need wait times.

Even though there are no restrictions to keep you from adding a pre-wait do not add a pre-wait time to the first work item in a strategy unless you have a business need to do so.

How does an optional work item act in a strategy?

When you designate a work item as optional, the work item will be closed automatically if not completed in the specified time period.

What happens if a work item is escalated?

If you specify an escalation wait time for a work item, then an automatic notification is sent to a collector's manager if the work item is not completed in the specified time period.

Set Up Correspondence

Uses

• Select the correspondence template to be used for a manual or automatic work item.

Related Topics

Create a Work Item - Details

Assign Skills

Work Items

Frequently Asked Questions

Where do I get more information on Oracle XML Publisher?

You can find more information in Oracle XML Publisher Administration and Developer's Guide.

Do I have to use Oracle XML Publisher to send correspondence?

Yes. XML Publisher is the standard tool used by Oracle Applications for formatting reports and correspondence.

Can I modify or change the preseeded correspondence templates?

Yes, but save the revised template with a new name and register it. See: Create Oracle XML Publisher Templates.

Custom Workflows

Uses

• Associate a custom workflow to a workflow type work item.

Related Topics

Assign Skills

Create a Work Item - Details

Work Items

Frequently Asked Questions

Can I add IEX: Strategy Custom Work Flow to a work item?

No. If you want to use a custom workflow, you must copy, modify and rename IEX: Strategy Custom Work Flow.

How do I create a custom workflow?

See: Using Custom Workflows for instructions on how to create a custom workflow.

Assign Skills

Uses

• Identify the skills required to execute the work item.

  The following table describes the process steps of creating a skill, linking the skill to employee, and defining skill in work item.

  Step	Process	Responsibility	Navigation/Action
  1	Creating Skill	HRMS Manager	Navigate to Career Management > Competencies. Create skill.
  2	Linking Skill to Employee	HRMS Manager	Navigate to Fastpath > Competencies Select the employee and link the skill set to the employee.
  3	Defining Skill in Work Item	Collections Administrator	Navigate to Setup Checklist Create work item and assign the skill set defined above.

Frequently Asked Questions

Do I have to assign skills for each work item?

No. Assigning skills is optional. Assign a skill when a work item can only be performed by someone with specialized skills

How can I learn more about using skills?

Skills are based on competencies set up in Oracle HRMS that are then associated with resources. For more information, see: Competencies Overview, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide and Defining Competencies, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide.

What happens if the skill set assigned to the work list does not match with the skill of the collector?

If the skill assigned with the work list does not match with the skill of the collector, it will be assigned to the default collector. It is essential to define the collector in customer profile first either directly or through group and assign the skill to the customer.

Create Collections Strategies

To create or update strategies, complete the steps in the Create Collections Strategies flow which you can access from the Collections Checklist or the Create Collections Strategies tab.

When you create a strategy, you begin by defining a strategy template. The template is always based on a segment of the database, such as all customers in UK or all accounts with high balance amounts. Then for the template, you set score ranges to further group customers within the segment, and add the work items for each strategy. Advanced Collections creates one strategy for each low score you specify. The name of the strategy concatenates the template name plus the strategy score.

Tip: To add in intelligence to your strategy names, name your template to reference the database segment it applies to. Then name your strategy score ranges to identify the type of strategy approach, such as hard, medium, and soft. For example, the strategy names could be UK Customers Hard, UK Customers Medium, and UK Customers Soft.

When you run the Strategy Management concurrent program, it compares the score of the object to the score values in the strategy templates to determine which strategy to apply to the object.

To ensure that Advanced Collections assigns a strategy to every delinquent object, you must create scoring components and strategy templates that account for all score numbers generated by your scoring engine. If scoring or strategy assignment misses an object, Advanced Collections uses the Default Strategy Template, which has the lowest score/rank of 0, to assign a strategy. This ensures that a strategy is assigned to all objects. You must designate a default template.

The contents of an existing strategy can be copied too. You need to give new name to the copy. This is especially useful when a complex strategy has been created and tested, you can reuse the strategy and tweak it as required.

Note: The Strategy Management concurrent program searches for scores for objects. It does not check to see which scoring engine created the score.

To create a strategy:

• General Information

• Segments

• Scoring Rules

• Work Items

• Review

Related Topics

Collections Strategies

Create Work Items

Strategy General Information

Uses

• Add or update general information for a strategy.

Definitions

Term	Definition
Checklist	A more granular list of items related to a work item that collectors can refer to as they perform a task.
Minimum Tolerance	The smallest number by which a score can change and dynamically switch the strategy to a different strategy.
Strategy Level	The level at which you do business with your customers. You set this level in the Questionnaire.
Type	Designates what type of delinquency the strategy applies to, such as Delinquent, Litigation or Write-off.

Related Topics

Adding a Strategy Segment

Create Collections Strategies

Switch Strategies Dynamically

Frequently Asked Questions

How do I create a checklist?

Use the Create Strategy steps to create a checklist.

Adding a Strategy Segment

Uses

• To identify the segment of your database that the strategy uses.

Definitions

Term	Definition
Key	Unique identifier in the database view that links the view to the collections object, such as transaction or customer. It is the data level at which you run strategies.
View Name	Name of the database view used to limit the scope of a strategy.

Related Topics

Scoring Rules

Strategy General Information

Segments

Frequently Asked Questions

Who creates segments?

Your database administrator creates and registers a database view to access a group of records. Views appear in the View Name drop down list on the Segments page when creating or updating strategies. The collections administrator adds a segment to a strategy in the Create Strategy flow.

Are there any restrictions for the database view?

The segment name be in the format, IEX_F_[name]_V. The view must be created in the APPS schema (the Database owner of the object must be = 'APPS').

The view must contain an object ID column that is the same as the data level at which you run strategies. For example, if you run strategies at the customer level, PARTY_ID must be a column in the view.

Are there any seeded views for strategies?

Yes, IEX_F_STRATEGIES_V. Use this view as an example of how to implement a strategy filter.

Why do some segments have more than one key?

A developer can designate multiple primary keys when creating a view. This occurs when the view is used for multiple purposes.

Scoring Rules

Uses

• Add a scoring engine to a strategy.

Definitions

Term	Definition
Weight	Weight assigns the relative importance of each component in a scoring engine. The total weight of all scoring components in a scoring engine must = 1.0. Using weights is optional.
Range	The highest and lowest expected scores.

Related Topics

Work Items

Add a Strategy Segment

Overview of Scoring

Frequently Asked Questions

Do I have to select a scoring engine?

No, this step is optional.

Can I change the weight, component details, or parameters of the score components?

No, the score components are displayed for information only.

Will the strategy only apply to scores generated by the scoring engine I select in this step.

No, not necessarily. There is no direct association between the strategy and the scoring engine selected here. If you want to limit the strategy to the results of a specific scoring engine, then the best practice recommendation is to use the same segment in the scoring engine and the strategy.

Add Work Items

Uses

• Add strategy names and scores.

• Add work items for each strategy to be created from this strategy template.

Definitions

Term	Definition
Strategy Name	The name of the strategy to be created using the template identified in Step 1.

Related Topics

Scoring Rules

Work Items

Frequently Asked Questions

I cannot add work items for the strategies in my strategy template. What is wrong?

You must select a strategy name by clicking its radio button in order to be able to add work items.

Define Strategy Default

Uses

• Identify the default strategy to be used if no other strategy applies.

Related Topics

Collections Strategies

Frequently Asked Questions

What happens if I don't define a default strategy?

If you do not define a default strategy, the Strategy Management program errors out if it can't find any matching strategies.

When should I create my own default strategy instead of using the preconfigured strategy catch all strategy for my collections level?

The Catch All Strategy is a basic strategy. Create your own default strategy if you want to use different work items as a default strategy.

Can I modify the Catch All Strategy?

No, but you can copy it, modify the duplicate strategy to suit your requirements, and select it as the default strategy template.

My default strategy is not being assigned. What is wrong?

Verify that your default strategy is active. Advanced Collections cannot assign an inactive strategy. Also, the Strategy Management concurrent program will error out if you disable the designated default strategy.

Default Strategy Resource

If Advanced Collections is unable to assign an available resource for a work item in a strategy, it assigns the default strategy resource identified in the Define Strategy Default page of the Collections Checklist. This ensures that all work items have an assigned resource and appear as a task in the Collector's Work Queue.

The default resource can be a collector or manager.

Overview of Using Dunning Plans

Use dunning plans to manage your delinquencies if you utilize a simple collections process as part of your business practices. For example, if you send a letter to a customer regarding a delinquency and then follow up with a call if payment has not been received, you can use dunning plans. For complex collections processes or if you use multiple collections processes, you can use collections strategies. See: Collections Strategies.

When you use dunning plans, Advanced Collections selects delinquent customers and then, based on the oldest aging and the customer, account, bill to, or delinquency score, automatically sends out the appropriate dunning correspondence. For each aging bucket line, the system can send different dunning notices to different customers based on their scores.

Advanced Collections uses concurrent programs to execute the dunning process. Once you set up your dunning plans, you can schedule these programs to run automatically. It is recommended that you run dunning with the same frequency as your billing cycle. You must decide the data level for your dunning plan (customer, account, bill to, or delinquency) and create a dunning plan before you can execute the concurrent programs for the dunning process.

Note: Use either dunning plans or strategies to manage your delinquencies, but not both methods.

Related Topics

Dunning Plans

Dunning Process

Creating Correspondence Templates

Running Concurrent Programs for Dunning Plans, Oracle Advanced Collections User Guide

Dunning Process

The dunning process automates collections activities with the following:

• The Delinquent Status Determination concurrent program identifies delinquent transactions and assigns a status of delinquent, pre-delinquent (optional) or current.

• Then Advanced Collections scoring engine scores each customer at the selected dunning level: customer, account, bill to, or delinquency.

• The Send Dunnings to Delinquent Customers concurrent program uses the score and aging to determine which dunning to send. Oracle XML Publisher automatically creates and sends out dunning correspondence according to the score and dunning plan. Correspondence can be a letter, e-mail, or fax. The correspondence event is recorded in the customer's correspondence history.

• The Create Dunning and Broken Promises Call Backs concurrent program creates callback tasks for the collectors to follow up if payment is not received. Dunning callbacks appear as callback tasks in the Collector's Task node in Collector's Work Queue.

The Collections Administrator creates dunning plans as part of the Collections Checklist. You can create one dunning plan for each aging bucket, with different delivery methods and correspondence templates for each score range, and multiple score ranges for each aging bucket line, as needed.

Dunning plans run at the level you select as your collections activity level in the Collections Questionnaire.

Related Topics

Overview of Using Dunning Plans

Dunning Plans

Dunning Requirements

Before you can run dunning, you must set up the following:

• Set the collections level: customer, account, bill to, or delinquency. See: Setting the Dunning Level.

• Create templates for dunning correspondence, as needed. See: Creating Correspondence Templates.

• Select an Aging Bucket for Dunning Plans.

• Create a dunning plan for each aging bucket to be used. See: Creating a Dunning Plan.

• Set up Work Queue task node to display callback tasks. See: Set Up Universal Work Queue for Dunning Plans.

• Set up scoring engines to create delinquencies and score the appropriate level. See: Set Up Scoring.

Related Topics

Overview of Using Dunning Plans

Creating Correspondence Templates

Oracle XML Publisher generates the dunning correspondence that you send to your delinquent customers. Advanced Collections provides seeded templates for correspondence or you can create new templates to meet your business needs.

You can send dunning correspondence as a letter, e-mail, or fax.

Determine how many templates you need for your dunning plans. For example, a dunning plan could consist of the following:

• A polite reminder letter for a customer who usually pays promptly.

• An e-mail asking for payment for all past due items.

• A firmly worded letter demanding payment before legal action is taken.

Note: If you currently use Oracle One-to-One Fulfillment for correspondence, you must migrate to Oracle XML Publisher.

Related Topics

Overview of Using Dunning Plans

Set Up Oracle XML Publisher

Preconfigured Correspondence Templates

Dunning Plans

Perform the following steps to set up dunning plans. You can run either dunning plans or strategies, but not both.

• Set Dunning Plan Aging Bucket

• Set Collections Dunning Level

• Create Dunning Plans

• Set Up Universal Work Queue for Dunning Plans

Aging Bucket Lines for Dunning

You can create dunning plans for each aging bucket created in Oracle Receivables. Each dunning plan is composed of one or more score ranges and correspondence templates associated with aging bucket lines. For each aging bucket line, you can send different dunning notices to customers with different scores.

After you select the scoring engine for the dunning plan, you can select a correspondence template for each aging bucket line and optionally schedule a callback.

Exclude any column of aging bucket by not adding or removing that aging bucket row.

Specify different range of scores for the same aging bucket line and attach a letter to that range of score.

Note: You need to give the range in two decimal places (say 1 to 10 range and 10.01 to 100 the second range for same aging bucket line). It checks the continuity in decimal places also.

Note: Each aging bucket line is assigned a line number. The scoring engine uses this line number to perform comparisons rather than using the score ranges.

For example, if you set up the following aging bucket in Oracle Receivables:

Aging Bucket Line Number	Score Range
1	1 - 30
2	30.01 - 60
3	60.01 - 90

Then the scoring engine should be set up to compare aging bucket line numbers, not the score range referenced by that number. The scoring engine will then identify the aging bucket line number that has the oldest aged invoice for the default aging bucket.

Low	High	Score
1	1	95
2	2	75
3	999	60

Related Topics

Overview of Using Dunning Plans

Set Dunning Plan Aging Bucket

Set Dunning Plan Aging Bucket

Uses

• Select the aging bucket for your dunning plan.

  The aging bucket determines when dunning letters are sent out to customers. You can designate the same aging bucket you select as the default aging bucket for Aging tab information or select a different aging bucket if needed. You set the default aging bucket in the Collections Checklist.

  Note: Remember, you can run either dunning plans or strategies, but not both. You do not set the Dunning Plan Aging Bucket if you are running strategies.

Related Topics

Dunning Plans

Overview of Using Dunning Plans

Frequently Asked Questions

Are there any prerequisites?

Set up aging buckets in Oracle Receivables.

Who can perform this step?

The Collections Administrator.

How do I set the Dunning Plan Aging Bucket?

When you create a dunning plan, you can select the aging bucket.

Warning: Advanced Collections uses the aging buckets that have been created in Oracle Receivables. Do not delete these aging buckets.

Setting Dunning Level

You specify the data level at which to run dunning plans when you identify the level at which you do business with your customers in the Collections Questionnaire. This data level can be set at each operating level. Use the Define Operating Unit Collection Level page to define the collections for each operating level. The data level determines whether dunning notices are sent based on customers, accounts, bill to locations, or delinquencies.

• Customer level: Sends a single dunning notice detailing all delinquencies for a customer and optionally schedules a callback based on the party score and the range specified in the dunning plan.

• Account level: Sends one notice for every delinquent account and optionally schedules a callback based on the account score and range.

• Bill To level: Sends one notice for every delinquent bill to location and optionally schedules a callback based on the bill to score and range.

• Delinquency level: Sends one notice for each delinquency that a customer has and optionally schedules a callback. Advanced Collections uses the transaction score to select the most appropriate dunning notice/callback configuration.

See: Set Collections Dunning Level.

Set Collections Dunning Level

Uses

• Set the operational data level at which your dunning plans operate.

  Note: If you use strategies instead of dunning plans, you do not have to set the dunning level.

Related Topics

Dunning Plans

Overview of Using Dunning Plans

Frequently Asked Questions

Do I have to set the dunning level if I am running strategies?

No.

For which data levels can I run dunning?

The IEX: Sending Dunning to Delinquent Customers concurrent program creates dunning letters at one of the following operational data levels:

• Customer: Sends one dunning notice per delinquent customer. This the recommended data level for maximum efficiency and optimal system performance.

• Account: Sends one dunning notice per delinquent account.

• Bill To Location: Sends one dunning notice per delinquent billing location.

• Delinquency: Sends one dunning notice per delinquent transaction.

Are there any prerequisites?

Set up aging buckets in Oracle Receivables.

See: Set Dunning Plan Aging Bucket.

How do I set the dunning level?

You set the dunning level in the Collections Questionnaire. It is the level at which you do business with your customers.

If I am dunning at the Delinquency level, can I send a single dunning notice that contains all the delinquencies for the customer?

Yes. Use the IEX: Consolidate Invoice Template profile to designate the correspondence template that consolidates delinquencies in a single letter.

Creating a Dunning Plan

You can create dunning plans for each aging bucket you use. In a dunning plan, you specify which correspondence template to use based on a score range for each aging bucket line. You can have multiple score ranges for each aging bucket line. Specify a correspondence template, delivery method, and optional callback for each range of scores.

See: Create Dunning Plans.

Related Topics

Overview of Using Dunning Plans

Create Dunning Plans

Uses

• Create a dunning plan.

Related Topics

Dunning Plans

Overview of Using Dunning Plans

Frequently Asked Questions

Who can create a dunning plan?

The Collections Administrator.

Are there any prerequisites?

You must create correspondence templates if you are not using the preconfigured templates. See: Set Up Oracle XML Publisher Templates.

What score range numbers can I use?

There is no limit for range numbers. You can use negative numbers and integers to two decimals places. Be sure the score ranges you enter fit within the high and low score ranges of the scoring engine that scores your customer, account, bill-to location, or transactions.

Can I change a dunning plan after I create it?

You can make changes to a completed dunning plan at any time.

Should I test my dunning plan before using it in a production environment?

Yes. Be sure to test your dunning plan with all or a portion of your data to verify that it is working as you intend. If you are using customer data, you may want to advise the customers in your test that they will be receiving some test dunning letters.

Set Up Universal Work Queue for Dunning Plans

Uses

• Configure Universal Work Queue to display scheduled tasks for dunning plans.

Related Topics

Dunning Plans

Overview of Using Dunning Plans

Frequently Asked Questions

What work nodes do I need for dunning?

If you use dunning plans, you should hide the following Universal Work Queue (UWQ) nodes related to strategies to avoid confusion. Your collectors do not need to see them in their list of work items.

• IEU: Queue: Account View Strategies

• IEU: Queue: Bill To Strategies

• IEU: Queue: Customer View Strategies

• IEU: Queue Order: Account View Strategies

• IEU: Queue Order: Bill To View Strategies

• IEU: Queue Order: Customer View Strategies

For a complete list of profile options, see: Profile Options and Profile Categories Overview.

Can I set up Universal Work Queue so that collectors can navigate from dunning callbacks directly to dunning history in Advanced Collections?

Yes. Using the CRM Administrator responsibility, go to Task and Escalation Manager : Setup and click Objects Meta-data. Query the JTF object, Party. Set Open from Task to No.