AP FI Dunning Procedure For Customer Outstanding Invoices

AP FI Dunning Procedure for Customer
Outstanding Invoices
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I. INTRODUCTION
Purpose:
When the customer misses the payment for the
outstanding invoice within specified payment due date.
The dunning letter is generated via sap program and
send at customer address for reminding the customer
outstanding payment

Requirement:
The dunning system enables to trace liable customers
who have not paid their open invoices within a given
time span. It enables you to handle the process from, for
example, sending a reminder to customers of their
outstanding payments through to referring such
customers to collections agencies.

The dunning system covers the following documents:
1. Open A/R invoices, including invoices that are
partially credited or partially paid
2. Invoices that include installments
3. A/R credit memos
4. Incoming payments that are not based on invoices

II. CONFIGURATION:
1. Create Dunning Keys
We define dunning keys in this step. Dunning keys limits
the dunning level of an item.

Path: IMG > Financial Accounting (New) > Account
Receivable and Account Payable > Business
Transactions > Dunning > Basic Setting for Dunning >
Define Dunning Keys

Tcode: N/A
2. Define Block reason for Dunning Notices

In this step, we define the reasons for a dunning block
under a key. The key can be entered in an item or in the
account of a Customer master. Blocked items or
accounts are not considered for the dunning run
Transactions > Dunning > Basic Setting for Dunning >
Define Dunning Block Reasons

Tcode: N/A

3. Define Dunning Procedures
We can create Dunning text, Dunning level, Dunning
Charges and Company code assignment in the dunning
procedure
Transactions > Dunning > Dunning Procedure > Define
Dunning Procedure
Tcode: FBMP
4. Create Dunning Interval in days to Dunning

Procedures
We determine at which intervals the allocated accounts
are to be dunned for every dunning procedure. During
every dunning run, the system then checks whether the
run date is at least this number of days (14 days) since
the date of the last dunning run.
Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure and click “Choose”
Button
5. Define Dunning Levels to Dunning Procedures

In this step, we determine number of dunning level set
up in dunning procedure.
Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure and click “Choose”
Button
6. Define Dunning Charges to Dunning Procedures

In this step we add the dunning charge as per the
dunning level. This is like an administration charge to
dun the customer. Currency Euro is assigned during
adding the dunning charge
Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure, click “Choose” Button,
and choose “Charges” button

7. Define Minimum Amounts to Dunning Procedures
Minimum Amount are customized to charge the
administration charge to customer with reference to
dunning level
Dunning Procedure
Tcode: FBMP
and choose “Minimum amounts” button
8. Assign Dunning Texts and forms to Dunning
Procedures
For inserting dunning forms, click Dunning Texts and
assign the required forms for the dunning text with
reference to dunning Level. In case the customer has
different language and the form contains different
language, then please follow the document attached to
translate the source language to target language.
Dunning Procedure
Tcode: FBMP
and choose “Dunning Texts” button
9. Define Dunning level to Dunning Procedures
Click the dunning levels and input days in Arrears for
each dunning levels.
Select Always Dun in legal dunning proc for not missing
any dunning notices.
Dunning Procedure
Tcode: FBMP
and choose “Dunning Levels” button

10. Assign Special indicator to Dunning Procedures
In this step, we have assigned Special Indicator Reserve
for Bad Debt to dunning Procedure.
Dunning Procedure
Tcode: FBMP
and choose “Sp. GL indicator” button
11. Assign Company Code to Dunning Procedures
We have assigned company code with reference to
Dunning Level and not by Dunning area
Path: N/A

Tcode: OBVU
12. Assign Sort Fields to Dunning Procedures

In this step, we assign Sort field K1 and Sort field P1 to
Company code.
K1 will control the header content and P1 will control line
item while printing the contents
Path: N/A

Tcode: OBVU

III. PREPARATION OF CUSTOMER MASTER DATA
FOR DUNNING PROCEDURES:
1. In this step, we insert Dunning procedures in the
customer master (Correspondence tab).
2. We have to maintain the Language field in the
customer master data (Address tab) to print the Dunning
Notice as per there language, Dunning Text should also
be maintained in reference to dunning level. So that the
content of dunning notice will be different to dunning
level.
3. For dunning run, this transaction should be performed
by F150. This is a month end duty. Please insert
Dunning date, Document posted up to date, Company
code, Customer Number and save
a. In case we will specify the checks that are to be
maintained by user before starting dunning the
customer
- Dunning procedure should be maintained in customer
master
- Verify in Customer master regarding Dunning block
(Customer can’t be dunned if there is dunning block in
customer master as well as line item)
- Verify in transaction FBL5N the customer Invoice
should be overdue and Amount should be in debit
balance and not in credit
- User should make sure the parameters are inserted
correctly for Dunning date, Customer Number, Company
code and Document posted till date
- Correct Printer should be inserted while printing the
dunning notice
b. Dunning test for Credit Memo and Down payment
- Credit Memo
In the dunning run, we can offset existing credit notes
with outstanding invoices. This affects the determination
of the due date for payment and the dunning level.
These are different for customer and vendor credit
memos.
The dunning program assumes that credit memos are
always due on the baseline date, unless they have been
given a specific due date or are invoice-related. This
means that credit memo dunning is not affected if you
enter only one payment term manually in a line item.
For invoice-related credit memos, the dunning level is
taken from the invoice, provided this is contained in the
dunning proposal. All other credit memos due are
assigned to the highest dunning level determined so far
for the account they belong to. This means that these
credit memos are cleared with the oldest invoices.
- Down payment
We can take down payments into consideration during
the dunning run. When defining the dunning procedure
we must specify which down payment types are
included in the dunning run. To do this, we specify the
special G/L indicators for these down payment types.
The dunning program treats a down payment received
as a credit memo and reduces the receivables by the
amount of the down payment. Since down payments are
only included in the dunning run in exceptional cases,
each down payment item contains a field for the dunning
block. The system sets this block automatically. The
down payment also contains a due date field, which the
system automatically fills with the document date. You
can change these fields with the document change
function.

III. EXAMPLE DUNNING LETTER: (German language)
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 59 Comments

Venkat Emani May 3, 2013 6:55 PM
Good work Julie, very detailed document !
Like (1)
o
Julie (PHAN THI THU HUONG) Jun 27, 2013
3:14 AM (in response to Venkat Emani)
Thank you Venkat!
Like (1)

Colette Jamieson Sep 1, 2015 5:23 PM (in
response to Julie (PHAN THI THU
HUONG))
Hi Julie,

Just came across your document..Very
well done!

Question: When we run F150, we get the
following message once job complete:
"298 dunning notices generated, of which
121 are to be sent,
121 dunning notices printed (cust. 121,
vendor 0)"

121 letters are printed.
What does the 298 dunning notices
generated represent?
What could be the cause for the difference
between the number of generated notices
and printed notices?
Please respond.
Thanks.
Colette J.
Like (0)

Partha Sarathi Samantaray Oct 1, 2015
1:49 PM (in response to Julie (PHAN THI
THU HUONG))
Hi Julie,

Is there any setting to have only one line
item selected for Dunning level 1,
irrespective of the minimum amount and
days of arrears?

Regards
Partha
Like (0)

Erwin Leitner Jul 2, 2013 5:11 PM
Hello,

Great!

Fine thank you.
all the best
Erwin
Like (1)
o
Julie (PHAN THI THU HUONG) Jul 3, 2013
3:07 AM (in response to Erwin Leitner)
Hi Erwin,
Thank you very much.
Like (0)

sreehari tokala Jul 29, 2013 12:20 PM (in
HUONG))
Good work nice document with full
details . it will be help full to Fresh
consultants. you have done nice job.
Like (1)

Julie (PHAN THI THU HUONG) Jul
30, 2013 8:06 AM (in response to
sreehari tokala)
Thank you Sreehari.
Like (0)

Marssel Vilaça Jul 29, 2013 2:58 PM
Good content, Jullie. As always!
Like (1)
o
8:04 AM (in response to Marssel Vilaça)
Thank you Marssel...
Like (0)

Deepa FI Feb 26, 2014 12:06 PM (in
HUONG))
Nice work julie....very informative
document.

Thanks
Deepa
Like (0)

Raavi Singh Jul 30, 2013 8:01 AM
Hey Julie,

Nice document. Can you please also guide about
the e-mail send to customer, do the functional
consultant have to do any config for the same.

Thanks !!

Raavi
Like (1)
o
8:55 AM (in response to Raavi Singh)
Hi Raavi,
Thank you for your reading.
I'm not sure about Email sending program of
SAP standard.
In my client, we customize the program to get
data from table MHNK, and call function
module REPRINT_DUNNING_DATA_ACCOU
NT to generate Dunning letter spool. Then
send to email address which is maintained in
Customer master data.
Like (0)

Erico Mattos Jul 31, 2013 6:53 PM
Very nice!

Thanks!
Like (1)

Devi Giri Aug 2, 2013 2:07 AM
Hi Julie,

Very well written document! Have you
implemented automating the Dunning outputs?
Currently we have configured to schedule Dunning
job daily in the background that will print. However
we have a requirement to automate the Dunning
output to Print And/or Fax And/or Email to
customers. Our ABAP developer is trying to
enhance user exit F150D001, however unable to
achieve the requirement we have. Any
suggestions/guidance you can provide will be
helpful.

Thank you in advance,
Devi
Like (1)
o
Julie (PHAN THI THU HUONG) Aug 19, 2013
3:08 AM (in response to Devi Giri)
Hi Devi,
We don't implement automating for outputs, we
customize one program to run manually.
You can create a new thread in forum to get
the help.
Thank you for your reading.
Julie
Like (0)

Sattaiah Gundu Aug 7, 2013 11:42 AM
Hi Julie,

Really very good work. GREAT
Like (1)
o
3:06 AM (in response to Sattaiah Gundu)
Thank you so much Sattaiah!
Like (0)

Shobhnath Singh Aug 16, 2013 1:44 PM
Hi Julie,

Well written docucments.

very nice Julie..

Thanks,
Shobhnath
Like (1)
o
3:06 AM (in response to Shobhnath Singh)
Thank you for you comment Shobhnath!
Like (0)

Shobhnath Singh Aug 30, 2013 10:47
AM (in response to Julie (PHAN THI THU
HUONG))
Its my pleasure Julie
Like (0)

Mohit Pandya Aug 17, 2013 6:57 AM
Hi julie
great job
i must appreciate your work its really helpful

Thanks
Mohit
Like (3)
o
3:05 AM (in response to Mohit Pandya)
Thank you very much Mohit!
Like (1)

Naresh Krishnamoorthy Aug 30, 2013 12:13 PM
Good Resource for All. Many Thanks.

Best Regards,
Naresh K.
Like (1)

Wajahat Bokhari Sep 1, 2013 11:05 PM
Hi Julie

I am new to SAP Community, it is really good
material for beginners.
Thanks

Wajahat
Like (1)

aditya vardhan Sep 11, 2013 7:18 PM
Hi Julie,

It is really wonderful document and useful to many
of the FI consultants who is going to implement
Dunning.

Thanks
Aditya
Like (1)

Sanaulla Sap Oct 17, 2013 5:33 PM
Good Explanation.. !
Like (1)
o
Julie (PHAN THI THU HUONG) Oct 18, 2013
7:53 AM (in response to Sanaulla Sap)
Thank all for your comment!
Like (0)

suresh kumar Oct 21, 2013 5:58 PM (in
HUONG))
Hi Julie,
Really great work done and this will help
for me a lot because am new to this
community. I want to ask you to share
how exactly balances of vendor and
customer would be done, Can you please
send me with this kind of document if you
don't mine.

Regards,
Surya
Like (1)

Jazib Tariq Oct 19, 2013 12:20 PM
Hi Julie,
Good Document with Detail Explanation.
Like (1)

Shihab MS Oct 23, 2013 12:18 PM
Good Work...........
Like (1)

Ranu Eugene Oct 23, 2013 12:35 PM
Hi Julie,
Very nice and detailed document.
It is very helpful Doc.

Thanks For Sharing.
Keep up the Good Work .

Best of luck.

Regards
Eugene.
Like (1)

Pradeep Kiran Oct 29, 2013 8:27 AM
Very descriptive and well written document. Good
job and thank you for posting
Like (1)

Jayesh Ramesh Mandalia Nov 28, 2013 4:23 PM
Hi Julie,
Thanks for sharing the configuration with screen
shots; makes it a lot easier for everyone to
understand.

Thanks again,
Jay
Like (2)
o
Julie (PHAN THI THU HUONG) Nov 29, 2013
2:29 AM (in response to Jayesh Ramesh
Mandalia)
Thank you for you comment, Jay!
Have a good day!
Like (0)

Jayesh Ramesh Mandalia Nov 29, 2013
10:58 AM (in response to Julie (PHAN THI
THU HUONG))
Thanks Julie, you as well!
Like (1)

Lakshmi Sama Dec 24, 2013 5:36 AM
Hello Julie,

Nice document. Thanks for sharing your knowledge
and keep sharing

Thanks & Regards,
Lakshmi S
Like (1)
o
Julie (PHAN THI THU HUONG) Dec 26, 2013
6:28 AM (in response to Lakshmi Sama)
Many thanks, Lakshmi!

Julie
Like (0)

Vijay Kumar Jan 2, 2014 10:00 AM
Very Informative!

Thanks Julie. Keep Sharing
Like (1)
o
Julie (PHAN THI THU HUONG) Jan 2, 2014
10:02 AM (in response to Vijay Kumar)
Thank you for your reading
Like (0)

Ansar Iqbal Jan 31, 2014 4:35 PM
Hi Julie,

That was really helpful and informative. I look
forward to also digesting your other work.
Like (1)

Rohtas Sharma Feb 22, 2014 12:49 PM
Hi Julie
Really helpful brief document...

Thanks
Like (1)

Frank Lee Mar 27, 2014 3:36 AM
Hi Julie,
This document is very detail . I'm studying it now.
Thank you for your sharing.
Like (1)
o
Julie (PHAN THI THU HUONG) Mar 27, 2014
4:08 AM (in response to Frank Lee)
Thank you very much for you reading, guy!
Hope you always keep passion to SAP...

Regards,
Julie
Like (0)

Suresh Selvaraj Oct 28, 2015 6:12 PM (in
HUONG))
Hi Julie, The document is very helpful.
Like (0)

Arie Zwartewaalsloot Mar 28, 2014 3:02 PM
Hi Julie,

Thanks for sharing this document. very helpfull.

I have one question that I could not find in the
document. Is it possible in SAP to send a dunning
letter with all the invoices included so not only the
past due items. At this moment the statement
contains only the 1 day past due invoices and we
want to add the 0 days (today) also to the
statement.
Like (1)

Tirumal Sana Apr 29, 2014 1:09 PM
Hi Julie,

It's is very good document & self explanatory...

Thank for utilizing more time on this documentation

Regards,
Tirumala
Like (1)

AKKI N Jun 2, 2014 9:17 AM
Very Nice Jullie, Did as you have mentioned,

Its showing as Dunning Job ...... -1 was scheduled
successfully

but not getting output in SP01.

What can be the error
Like (0)

Sanja Beric Jun 4, 2014 6:34 PM
Hi Julie,
very helpful document, thanks a lot for sharing

Regards,
Sanja
Like (0)

SOUMYA RANJAN SINGH Aug 30, 2014 8:47 AM
Hi Julie
Really good configuration document.
Many many thanks for sharing.It will help the
beginners.
Keep on sharing and God bless U.

Soumya Ranjan
Like (1)

Sattaiah Gundu Sep 4, 2014 7:31 AM
Hi Julie,

Really its good.

Thanks & Regards
Sattaiah Gundu
Like (1)

Basappa Allannavar Sep 4, 2014 12:40 PM
Hello,

Very useful.

Regards,
Basappa
Like (0)

Nagabushan Reddy Nov 25, 2014 5:39 PM
Hi Julie,

Thanks for the dunning steps, they are great.

Where is the different language document? you did
not attach here, can pl email me?
bushanreddy@gmail.com

Thanks
Bushan
Like (0)

Anjali Singh Dec 12, 2014 6:54 AM
Hello Julie

Very nicely step by step explanation of the Dunning
process.

Thanks
Like (0)

vugile prasad Dec 31, 2014 6:32 AM
very clear all steps about dunning
Like (0)

Miguel Silva Mar 11, 2015 7:27 PM
Hi,
Anyone can tell if it is possible to automatically post
the same interest during the dunning procedure.

Thank you in advance.
Like (0)

Syrus Hossain Oct 29, 2015 2:40 PM
Hi Julie,

Very detail oriented document. Good job!!

Regards,
Syrus Hossain
Like (0)

srilatha o Nov 2, 2015 3:21 PM
Hi Julie,
Good, its is very detail and clear document . good
job
Like (0)

chand basha Nov 6, 2015 6:20 AM
Hi Julie,

Its Nice Document it's very helpful

Best Regards,
Chand

AP FI Dunning Procedure For Customer Outstanding Invoices

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AP FI Dunning Procedure for Customer

2. Define Block reason for Dunning Notices

4. Create Dunning Interval in days to Dunning

5. Define Dunning Levels to Dunning Procedures

6. Define Dunning Charges to Dunning Procedures

12. Assign Sort Fields to Dunning Procedures

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