What is collection strategy in SAP FIN-FSCM-COL - Collections Management?

SAP Term: collection strategy

• Component: FIN-FSCM-COL

• Component Name: Collections Management

• Description: Grouping and prioritization of collection rules For collecting receivables with component SAP , a collection specialist's worklist is created based on a collection strategy.

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• Key Concepts: 
  Collection strategy is a feature of the SAP Collections Management component of the Financial Supply Chain Management (FSCM) module. It is used to define the sequence of activities that should be taken when attempting to collect a receivable. This includes defining the order in which dunning letters, payment reminders, and other collection activities should be sent out. 
  
  How to use it: 
  Collection strategies are created in the SAP system and can be assigned to customers or customer groups. The strategies can be set up to include different activities such as sending out dunning letters, making phone calls, or sending emails. The system will then automatically execute the activities in the order specified by the strategy. 
  
  Tips & Tricks: 
  When creating a collection strategy, it is important to consider the customer’s payment history and preferences. This will help ensure that the most effective collection activities are used for each customer. Additionally, it is important to review and update collection strategies regularly to ensure they remain effective. 
  
  Related Information: 
  The SAP Collections Management component also includes features such as credit management, dispute management, and payment processing. These features can be used in conjunction with collection strategies to ensure that receivables are collected in a timely manner.