Sometimes your business partners may fall behind on payments. You can send them a paymentreminder or a dunning notice to remind them of their outstanding debts. The R/3 System allows you todun business partners automatically. The system duns the open items from business partner accounts inwhich the overdue items create a debit balance.The dunning program selects the overdue open items, determines the dunning level of the account inquestion, and creates a dunning notice. It then saves the dunning data created for the items andaccounts affected.You can use the dunning program to dun both customers and vendors. It may be necessary to dun avendor if he or she has a debit balance as a result of a credit memo. If a customer is also a vendor, youcan offset the account balances against one another.
While implementing the automatic dunning procedure, you will need to make settings in the followingplaces before using the system and while it is running:
In Customizing for Financial Accounting
In the Master Record of Customer or Vendor
When posting documentsYou use the following attributes to control the dunning program, and you can configure them according tothe needs of your company:
Dunning procedureThe dunning procedure controls how dunning is carried out by the system. You can define as manydunning procedures as you like.
Dunning levelThe dunning levels are calculated based on the number of days open items are in arrears. You canalso have the system calculate the dunning levels based on the dunning amount or a percentage paid(sales-related dunning level determination). You can determine more than one dunning level perdunning procedure.
Dunning areaA dunning area is an organizational unit within a company code used for the dunning process.A dunning area can be a division or a sales organization. You assign a dunning area to an open itemwhen making a posting. You can dun items separately by dunning area.