Dunning is the process of methodically communicating with customers to
insure the collection of accounts receivable. It follows the process that
progresses from gentle reminders to almost threatening letters as accounts
become more past due. SAP has automated this process. Law in each country
regulate the form that dunning can take. It is generally unlawful to harasss or
threaten consumers. It is ok to issue firm reminders and to take all allowable
collection options.
The chart below shows the major factors in the dunning configuration
The basic parameters for dunning are set up in the dunning procedure. You
can define several different kinds of dunning procedures in the system
Only those customer that have a dunning procedure defined in their master
record are included in the dunning run.
Dunning procedures are maintained at client level. You can set up and
maintain forms individually for each company code.
Setting up dunning levels:
The dunning level is determined by the number of days in arrears.
You can have the system print all items at a particular dunning level.
You can specify a payment deadline which is copied to the dunning text.
Minimum Amounts:
This prevents the system from sending dunning notices for immaterial
amounts
Once the balance of a dunning level exceeds the minimum amount, the
corresponding dunning level is triggered and the customer is dunned
Dunning Texts: You can define a form for each dunning level or useone form
for several dunning levels.
Once the dunning procedure is defined it can be assigned to
a company in its master data.
