2. Agenda What is Dunning? Dunning Business Process Key Terms of Dunning in SAP Dunning program in SAP Configurations 2 Dunning Process
3. What is Dunning? Dunning is the process of notifying customers/vendor that an unpaid obligation has become past due. Dunning is correspondence involving Credit Control and Interest Calculation 3 Dunning Process
4. Dunning Business Process Phone call or send payment reminder Dunning letters to customer Legal letter to customer Write-off 4 Dunning Process
5. Key Terms for Dunning in SAP Dunning procedure Dunning area Dunning interval in days Dunning level Minimum days in arrears Grace period Minimum amount Dunning Interest Dunning charge 5 Dunning Process
12. Dunning interval in days Minimum number of days that must elapse after a dunning run before an account can be dunned again Compare with last dunning date stored in master records and line items Dunning Process 8
13. Dunning level Determines text on dunning letters Determines if interest is to be calculated Increase one by one base on number of days overdue Dunning Process 9
14. Dunning level Dunning Process 10 OverdueItem OldLevel New Level=Old Level + 1 The Dunning Letter
15. Minimum days in Arrears Minimum number of days after due date for an item to be dunned first time Dunning Process 11 Minimum Days in Arrears Level 1 0 1 2 3 4 5 6 7 8 9 10 11 12 Level 2 Due date
16. Grace period Items that are overdue less or equal to the grace period will not be dunned (works like a bonus period) Dunning Process 12 Grace Period Minimum Days in Arrears # Days in Arrears 0 1 2 3 4 5 6 7 8 9 10 11 12
18. Other terms Minimum amount Total due amount for an account to be dunned Count on each currency, each dunning level Can be amount or percentage per open items Interest Calculator Default interest calculator Lower priority than indicator assigned in master record Payment deadlines Days printed on dunning letter Use calendar to avoid off-working days Dunning charge Fee counted for dunning Can be amount or a percentage of dunning amount Dunning Process 14
You carried out the last dunning run on 03/01. The dunning interval is 14 days. If a dunning run were carried out on 03/15, the required dunning interval of 14 days would be reached; the accounts could be dunned again. If a dunning run were carried out on 03/14, the required dunning interval would not yet have passed.
- gentle to aggressive
- Vendor customer offset Master record assigned dunning area Open item overdue and has debit balance