3. What is Dunning
• When a customer misses payment for outstanding invoices
within specified payment due date. The dunning letter is
generated via SAP program and sent to the customer address,
as a reminder on the outstanding payments.
4. Dunning
The dunning process 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
5. Before Automatic Dunning process
• Dunning is the process of methodically communicating with customers to ensure the collection of accounts
receivable.
• It is performed on a monthly basis to all customers who have an overdue balance.
• Currently it is a manual process which involves below steps:
• Extracting the ageing balances for both Interco and Third Parties customers;
• Bucketing on excel the long outstanding invoices to the number of days due;
• Drafting emails for the manual dunning and attach a copy of the Statement of account for customers
with overdue balances
6. Before Automatic Dunning process
• Once the mail is sent, there is a follow up which takes place around less than a week.
• Another mail is sent to the same debtor asking for an update of the payment date.
• Depending on the debtor’s response, if a payment date is provided together with the amount, no further
mail or action is required, we only wait for the expected payment and do the allocation once received.
• Whereas if there is a query regarding the long outstanding invoices, we need to address the matter to the
person in charge normally the logistics department and try to close the matter with them the soonest
possible after alignment with both the debtor and at AGI.
