SAP FICO -Dunning

Contributed by
Mr.SHUBHAM AGNIHOTRI
Under Guidance of TagSkills

DUNNING CONFIGURATION AND PROCESSING

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 reminde to
customers of their outstanding payments through to referring such customers to collections agencies .

The dunning system covers the following documents:

 Open A/R invoices, including invoices that are partially credited or partially paid
 Invoices that include installments
 A/R credit memos
 Incoming payments that are not based on invoices

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CONFIGURATION:

Define Dunning Areas :-

Go to SPRO → SAP Reference IMG → Financial Accounting (New) → AR and AP → Business
Transactions → Dunning→ Basic Setting for Dunning → Define Dunning Area → Execute.

 Define The Dunning Area Screen

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  Click The New Entries Icon

 Update The Following Fields

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  Click The Save Icon To Save The Data

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Create Dunning Keys
Go to SPRO → SAP Reference IMG → Financial Accounting (New) → AR and AP → Business
Transactions → Dunning → Basic Setting for Dunning → Define Dunning Keys →Execute .
 Define dunning key screen

 Click The New Entries Icon

 Update The Following Fields

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  Click The Save Icon To Save The Data

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Define Dunning Procedures
We can create Dunning text, Dunning level, Dunning Charges and Company code assignment in the
dunning procedure
Specifying the company codes to include in dunning: You specify these company codes when
configuring the dunning program
Setting up the dunning procedure you want to use:Dunning procedures are company code
independent.
They determine the dunning interval, the grace periods for the due date determination, and the
number of dunning levels.
You can also set the dunning level at which you want to list all due items from an account in the
dunning notice.
Setting the dunning charges: You can either specify a fixed charge or have the system calculate
the charge on the basis of a percentage rate you specify.
Specifying the net payment due date at which a particular dunning level is reached.
Specifying the dunning notice you want to send to your customers: You have to define one or more
forms for the notice.
Dunning Text should also be maintained in reference to dunning level. So that the content of dunning
notice will be different to dunning level.
A dunning level represents a processing step within a dunning procedure which is implemented once
the relevant number of days in arrears has been reached.
The system calculates the days in arrears from the due date or the deferral date of the open items for
dunning, whichever is the greatest.
A dunning level is assigned to the dunning notice and the individual items in the dunning notice.
The dunning level of the dunning notice corresponds to
the highest dunning level of its items.
The dunning activities are carried out in accordance with the dunning level of the dunning notice.
A dunning procedure is made up of separate dunning levels that are either run in sequence, or can be
set manually.
You make a number of specifications for each dunning level, including the minimum amount of an
overdue item and the number of days in arrears to be reached in order for the item to reach the next
dunning level. You also define the dunning activities to be executed for each dunning level, as well as
the dunning charges and interest.

IMG > Financial Accounting (New) > Account Receivable and Account Payable > Business
Transactions > Dunning > Dunning Procedure > Define Dunning Procedure

T-code: FBMP

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  The SPRO IMG Path For Defining Dunning Procedure

 Define Dunning Procedure Screen

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  Click The New Procedure Icon To New Define Procedure

 Update The Following Field

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  Click The Dunning Level Icon

 Update The Field

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  The resultant define dunning procedure screen -company code dunning control screen

 Click The New Entries

 Update the fields
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  Click The Save Icon Located Save The Data
 Click The Minimum Amount Icon From Define Dunning Procedure Screen ,The System Ask
For Currency

 Enter The Value INR Currency Field

 Define The Dunning Procedure -Minimum Amount Screen

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  Click The Dunning Text Icon On The Screen. The System Ask For The Company Code And
Amount Type .
 Define Dunning Procedure -Company Code /Account Type

 Update The Company Code Field As 1200

 Select The Customer Button In The Account Type Group
 Press The Enter Key

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  Click
The
Save
Icon
To
Save
The
Data

ASSIGN

DUNNING PROCEDURE TO CUSTOMER MASTER

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CUSTOMER LINE ITEMS FOR DUNNING

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DUNNING LETTER GENERATION
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TRANSACTION CODE- F150

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www.tagskills.com 20 contact:-+91 6360959192
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