KMD Advanced Debtor Control

Dong Energy gains comprehensive view of its debtors

Need for new debtor control functionality
Public utilities group DONG Energy, which uses the ERP system SAP IS-U (Industry Solution Utilities), whose functions and features especially target large utility and energy companies, found that the system’s standard built-in debtor control functionality did not live up to the group’s needs.

DONG Energy required an inter-programme functionality to keep track of the company’s approximately half million electricity customers. The possibility of adding a new functionality to the existing SAP platform was given high priority.


New ADC module
A new module – the Advanced Debtor Control (ADC) - was developed together with experts from Dong Energy with insight in the accounts receivable processes in the company. The system is best described as an advanced module that is added on to a utility company’s existing SAP IS-U system.

The ADC module gives a company’s account manager the possibility to fully control the processes concerning a debtor’s open items. This allows for the possibility to establish instalment arrangements, create general reports and analytical reports on special categories, such as in connection with a debtor’s death or relocation.

“Our financial system is now fully integrated, and we can write reports concerning different levels of work with overdue bills, from debt recovery to actual closure,” Hanne Petersen, divisional debtors manager at DONG Energy says.

“After clearing up for a year we have now been through everything,” Hanne Petersen says. “Our implementation of the new module has given us both synergy and efficiency, especially since the work of money collecting has now been gathered in one place. Some elements used to be placed in the customer centre, some in the bookkeeping department and
others in the accounts department. But now all is collected in one place, which has also given us a strong professional environment surrounding follow up and metre reading,” Hanne Petersen concludes. She also mentions that central control ensures a qualitative and individual approach to the customer.


The result shows up on the bottom line
Efficient management and a comprehensive view of outstanding arrears also directly affect overall profits: “Our cash flow has improved significantly since the money is now in our coffers rather than with our debtors. We have also been able to discover more outstanding payments, thereby reducing our losses on debtors. In total, outstanding payments have been significantly reduced with this new solution,” Hanne Petersen
says.

Hanne Petersen says that Copenhagen Energy, Energy E2 and NESA also use the new debtor module, which has ensured easier inter-company control. Hanne Petersen also believes that due to the efficient control of the new module there are no limits to how many customers DONG Energy can handle: “There’s room for lots of customers without jeopardising the
efficiency of our control,” she concludes.