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SAP has released a new RDS to implement SAP Receivables Management. I have
been fortunate enough to work with the Product Development team to have a strong
insight into the offering and how it compares to a standard implementation.

What does it consist of?

  • To access the RDS you need to be on Enhancement Pack 5 or above
  • The project will be implemented in a 5 week timescale
  • The solution consists of Collections and Dispute Management modules within
    ERP
  • As standard there is no extra reporting in ERP and does not include SAP BW
    reporting.

For a potential customer the benefits of an RDS solution are easy to follow.

Purchasing services and licences from a single supplier as well as using SAP

best practices are enticing. Having an agreed scope allows the project to avoid

timely Blueprinting exercises providing a quicker implementation time, enabling

the client to realise the benefits of the solution in a quicker time frame.

However it is worth noting that the majority of the elapsed time within a

regular SAP Receivables Management project will focus on business process

re-design exercises. Time spent configuring the system will be fairly light. SAP

Receivables Management introduces new processes such as “Worklists” – Collection

Strategies” and “Dispute Management Workflow”. Replicating existing processes

into SAP Receivables Management will keep poor practice, leading to a lower

level of business improvement such as a reduction in DSO, Dispute escalation

time or reduction in head count.

The concept of an RDS is to provide a foundation solution that can be

personalised by the client. Two different clients could use the core

configuration and build from the RDS however they may have different processes,

as they will be different businesses with differences such as volume of

customers, volume of open items, and volume of Accounts Receivable team.

A standard SAP Receivables Management could take anywhere from 7 weeks to 7

months, so the RDS is definitely quicker and therefore it should be cheaper. If

you are a multi-national organisation with dozens of different business units

that are services by a number of shared service centres SAP Receivables

Management may be the solution for you, but the RDS may not be the

implementation method for you. If you are a smaller organisation with a few

business units with common processes then the RDS implementation for SAP

Receivables Management would be more attractive.

Having studied the offering from SAP I would say that the following 2 areas

within its implementation are the real value-add for a potential client.

1 – Common documentation

By having an agreed scope, the testing and training documents come prepared.

Time does not need to be spent creating documents which are one of the main

reasons the solution can be implemented in such an aggressive timescale.

2 – Upload of configuration

SAP has spent most of their development time providing a tool that can load

up the required configuration. The tool is clever enough to enable some codes to

be customised by the client, but there is a single process to perform the

configuration of the system. This reduces the risk of a consultant making a

mistake or missing out a step. Again this is part of the speed of the

implementation.

Whilst the RDS is good, it should be pointed out that the configuration

offered is pretty basic and most clients will require some modification on top

of the standard delivery. There is nothing to say that the RDS solution cannot

be promoted to production and the team start to use the new solution and over

time the solution is personalised to meet the Organisations requirements. As I

mentioned at the beginning one of the gaps within the RDS is the lack of

reporting. The rationale from SAP is pretty clear, not all customers use SAP BW

for reporting. There is plenty of business content available for SAP Receivables

Management, and I would recommend planning on a parallel stream to ensure

reporting is added to the solution as the reporting within ERP is limited.

If you are considering the SAP Receivables Management here is my check list
for you

Go for the RDS if…

  • you have common Accounts Receivable processes
  • you are managed by a common Accounts Receivables team
  • you have a handful of business units (not dozens)
  • you want to go live via quick and trusted route
  • you are happy for the solution to be “done to you”.

Remember to…

  • Consider how you will report on the new system (bespoke ABAP’s or BW?)
  • Allow for business change within your team
  • Budget for future changes to personalise your solution.

Avoid the RDS route if…

  • you need to agree the scope of your solution before implementation
  • you have dozens of business units with different processes and teams
  • you would like your SI to collaborate with you during the
    implementation.
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