SAP FI Dunning |

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Dunning is the process of notifying customers that an unpaid obligation has become past due.

Chapter Objectives– Understand the functionality and configuration of a

Dunning Procedure and how it is executed in the Dunning Program.

– Understand the Organizational Structure of Dunning Levels within a given Dunning Program and how parameters can be set for each of them.

– Understand how to send dunning correspondence to customers and vendors through Dunning Letters.

– Run the Dunning Program.

Chapter 21Dunning

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Organizational Structure related to Dunning:

Client CLAA

Company Code CCAA

Company Code CCBB

Dunning AreaDA01

Dunning AreaDA01

Dunning AreaDA02

The Dunning Area is an optional unit in the Organizational Structure usedto group Customers / Vendors for dunning. Each Dunning Area can represent different dunning policies or Organizational Units responsible for dunning.

Dunning

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The Dunning Procedure contains the configuration of a Dunning Program.

The Dunning Procedures can be tied to Dunning Areas or to aCustomer / Vendor master record.

Dunning Procedure Dunning Program

Configuration Execution

DunningLevels

MinimumAmounts

Dunning Charges

DunningTexts

Basic Parameters of the Dunning Procedure

Dunning Procedure

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Frequency for running

Items that are overdue less or equal to the grace period willnot be dunned (works like abonus period)

Days in arrears after which a Dunning Notice will be sent

0 1 2 3 4 5 6 7 8 9 10 11 12

Grace Period Minimum Days in Arrears # Days in Arrears

Configuring the Dunning Procedure

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Grace Period: 4 DaysMinimum Days in Arrears: 8 Days

Due Amt. Status

1) -6 1,500 Not Overdue2) +3 350 Within Grace Period3) +6 800 Within Min. Days in Arrears4) +10 5,400 Overdue 10 Days

Result:

Items 3 and 4 will be dunned. You will dun the account forItem 3 because there is another item that is overdue more thanthe minimum days in arrears.

If Item 4 did not exist, then item 3 would not be dunned.

Items:

Selecting Open Items to be Dunned

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Dunning Levels

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OverdueItem

OldLevel

New Level=

Old Level + 1

The Dunning Letter

Selecting the Dunning Level

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Minimum Amounts define an overdue threshold of the total AccountBalance, which must be exceeded to reach a Dunning Level.

Dunning Level

• Minimum Amount

• Minimum Percentage

• Minimum Amount for Interest

Example:Total Account Balance: USD 25,000,00Configuration of Dunning Level 1: Min. Amount = USD 15.00 and Min. Percentage = 5%Dunning Balance Level 1: USD 500.00

Will be dunned? No, because USD 500.00 >= Min. Amount but USD 500.00 < Min. %

Minimum Amounts

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For each Dunning Level, it is possible to define an amount to be charged if the minimum amount for dunning is exceeded.

A Dunning Charge is used to cover the postage and handlingof Dunning Letters.

Dunning Level

Dunning Charge:Dunning Charge:Static amount to be chargedStatic amount to be charged

Dunning Charge %:Dunning Charge %:Percentage to be applied toPercentage to be applied tothe total of all overdue itemsthe total of all overdue itemsin the Account to determinein the Account to determinethe Dunning Chargethe Dunning Charge

Dunning Charges

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Dunning Level

Dunning Form

A form is set up using SAPScript and can beshared by more than one Dunning Level.

Dunning Texts

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Pre-DefinedAction TriggerTrigger

Correspondence

Sending Correspondence to Customers / Vendors

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Assigning the Dunning Procedure in the Master Record

•Master Record•Company Code Data•Correspondence Tab

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The Dunning Program examines the open items of a Customer / Vendor and, if overdue items exist, produces the appropriate notice.

Dunning DateDocuments DateCompany Code, Range of Customer / Vendor Numbers

Running the Dunning ProgramStep 1: Set Parameters

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Running the Dunning ProgramStep 2: Run the dunning program immediately or in batch

mode

Dunning can be startedat a specific date and timeor it can be started immediately.

Dunning notices can be createdimmediately after the dunningrun. If this parameter is set itis no longer possible to changethe dunning proposal manuallyor to delete it.

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It’s possible to create an additional log to analyze the dunning run.

A range of customerand vendor accountshas to be specified

Running the Dunning ProgramStep 3: Create and analyze Logs

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Cross Company Code Dunning

This feature enables users to create one dunning notice that covers business partners that exist in different company codes. Likewise, data that would normally be spread over several company codes (and hence several correspondence letters) can now be

grouped into one correspondence letter.

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Dunning Block Reasons are used to block a Customer / Vendor or an item from being dunned.

The user specifies the Dunning Block Identification and a Description.

Dunning Keys are used to mark items that should not trigger a higherDunning Level.The user specifies the Dunning Key Identification and the Maximum Level that can be triggered.

Dunning Block Reasons/ Dunning Key

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Incoming Payment

• A payment coupon may be attached to a dunning letter or account statement.

• Payment coupons can also be printed in a separate spool on dedicated forms.

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Chapter 21 - DunningChapter Summary

• Key Terms: – Dunning– Dunning Area– Dunning Procedure– Grace Period– Dunning Level– Minimum Amount– Dunning Charge

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Chapter 21 - DunningChapter Summary

• Key Terms: – Dunning Letter– Dunning Program– Dunning Block Reason– Dunning Keys