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Dunning


Home » SAP Dunning


Dunning

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.

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