BP Bill Payments & Receivables Management::Business Partner Payment Management::Business Partner Debt Collection

Business Partner Debt Collection collects past due payments from parties with whom an enterprise does business. It monitors the amount due from parties, for example check whether the payments are made on time, and implements necessary activities and policies to recover amounts overdue.

The responsibilities of this process include, but are not limited to:  
• Identifying bills/invoices which are overdue for payment  
• Initiating and managing follow-up with parties having overdue amounts  
• Interacting with Business Partner Payment Plan Administration to arrange payment plans to allow parties to pay overdue amounts in installments  
• Initiating debt recovery activities in accordance with appropriate commercial practice and policies  
• Managing the aged Business Partner debt portfolio  
• Establishing and managing Business Partner debt profiles to assist in managing debt recovery and debt risk on a Business Partner, product or Business Partner group basis  
• Interacting with Business Partner Tender Management and/or Business Partner Agreement Management to establishing and manage commercial arrangements with third parties for the recovery of aged debt, and/or selling of parts of the debt portfolio to one or more third parties    

Collections occurs often between larger parties and the collection process is much more complex, since some Parties follows a dynamic late payment strategy. There are multiple process alternatives that may be followed, based on various factors. The process typically includes invoices and reminders including soft dunning letters (multiple wordings), moderate, hard dunning letters, final demand letters. Can also be pre-empted by predictive risk based customer behavior (discerning periodical vs event based delinquencies) to support customer to proactively "self-cure" before upcoming collection event escalations.