Chapter 21 Dunning

Dunning is the process of notifying customers that an unpaid obligation has become past due. Chapter Objectives – Understand the functionality and configuration of a Dunning Procedure and how it is executed in the Dunning Program. – Understand the Organizational Structure of Dunning Levels within a given Dunning Program and how parameters can be set for each of them. – Understand how to send dunning correspondence to customers and vendors through Dunning Letters. – Run the Dunning Program.



Organizational Structure related to Dunning: Client CLAA

Company Code CCAA

Company Code CCBB

Dunning Area DA01

Dunning Area DA01

Dunning Area DA02

The Dunning Area is an optional unit in the Organizational Structure used to group Customers / Vendors for dunning. Each Dunning Area can represent different dunning policies or Organizational Units responsible for dunning.



Dunning Procedure Dunning Program Configuration Execution Dunning Levels Minimum Amounts Dunning Charges Dunning Texts Basic Parameters of the Dunning Procedure 4.3 Dunning . The Dunning Procedures can be tied to Dunning Areas or to a Customer / Vendor master record.6fi_21.Dunning Procedure The Dunning Procedure contains the configuration of a Dunning Program.

Configuring the Dunning Procedure Frequency for running Days in arrears after which a Dunning Notice will be sent Items that are overdue less or equal to the grace period will not be dunned (works like a bonus period) Grace Period Minimum Days in Arrears # Days in Arrears 0 4.4 1 2 3 4 5 6 7 8 9 10 11 12 Dunning .6fi_21.

5 Dunning . Days in Arrears Overdue 10 Days Result: Items 3 and 4 will be dunned. 4. You will dun the account for Item 3 because there is another item that is overdue more than the minimum days in arrears. 1.400 Status Not Overdue Within Grace Period Within Min. then item 3 would not be dunned.6fi_21. If Item 4 did not exist.Selecting Open Items to be Dunned Grace Period: 4 Days Minimum Days in Arrears: 8 Days Items: Due 1) 2) 3) 4) -6 +3 +6 +10 Amt.500 350 800 5.

6 Dunning .6fi_21.Dunning Levels 4.

6fi_21.7 Dunning .Selecting the Dunning Level Overdue Item Old Level New Level = Old Level + 1 The Dunning Letter 4.

Amount = USD 15.000. which must be exceeded to reach a Dunning Level.6fi_21. Percentage = 5% Dunning Balance Level 1: USD 500. % 4.Minimum Amounts Minimum Amounts define an overdue threshold of the total Account Balance. Dunning Level • Minimum Amount • Minimum Percentage • Minimum Amount for Interest Example: Total Account Balance: USD 25.8 Dunning .00 Configuration of Dunning Level 1: Min. Amount but USD 500.00 and Min.00 < Min.00 Will be dunned? No. because USD 500.00 >= Min.

A Dunning Charge is used to cover the postage and handling of Dunning Letters.6fi_21. Dunning Charge: Static amount to be charged Dunning Level Dunning Charge %: Percentage to be applied to the total of all overdue items in the Account to determine the Dunning Charge 4.Dunning Charges For each Dunning Level.9 Dunning . it is possible to define an amount to be charged if the minimum amount for dunning is exceeded.

6fi_21.10 Dunning . 4.Dunning Texts Dunning Level Dunning Form A form is set up using SAPScript and can be shared by more than one Dunning Level.

6fi_21.Sending Correspondence to Customers / Vendors Pre-Defined Action Trigger Correspondence 4.11 Dunning .

6fi_21.12 Dunning .Assigning the Dunning Procedure in the Master Record •Master Record •Company Code Data •Correspondence Tab 4.

produces the appropriate notice.Running the Dunning Program Step 1: Set Parameters The Dunning Program examines the open items of a Customer / Vendor and. Range of Customer / Vendor Numbers 4. Dunning Date Documents Date Company Code. if overdue items exist.13 Dunning .6fi_21.

If this parameter is set it is no longer possible to change the dunning proposal manually or to delete it.Running the Dunning Program Step 2: Run the dunning program immediately or in batch mode Dunning can be started at a specific date and time or it can be started immediately. Dunning notices can be created immediately after the dunning run. 4.6fi_21.14 Dunning .

6fi_21.15 Dunning . A range of customer and vendor accounts has to be specified 4.Running the Dunning Program Step 3: Create and analyze Logs It’s possible to create an additional log to analyze the dunning run.

Likewise. data that would normally be spread over several company codes (and hence several correspondence letters) can now be grouped into one correspondence letter.Cross Company Code Dunning This feature enables users to create one dunning notice that covers business partners that exist in different company codes. 4.16 Dunning .6fi_21.

6fi_21. The user specifies the Dunning Key Identification and the Maximum Level that can be triggered. 4. The user specifies the Dunning Block Identification and a Description.Dunning Block Reasons/ Dunning Key Dunning Block Reasons are used to block a Customer / Vendor or an item from being dunned.17 Dunning . Dunning Keys are used to mark items that should not trigger a higher Dunning Level.

18 Dunning .Incoming Payment • A payment coupon may be attached to a dunning letter or account statement.6fi_21. 4. • Payment coupons can also be printed in a separate spool on dedicated forms.

19 Dunning .Dunning Chapter Summary • Key Terms: – Dunning – Dunning Area – Dunning Procedure – Grace Period – Dunning Level – Minimum Amount – Dunning Charge 4.Chapter 21 .6fi_21.

20 Dunning .6fi_21.Chapter 21 .Dunning Chapter Summary • Key Terms: – Dunning Letter – Dunning Program – Dunning Block Reason – Dunning Keys 4.

Sign up to vote on this title
UsefulNot useful