Automatic Dunning payments

summary notes
Lesson 1 Dunning Run
During the dunning run, the system chooses the accounts and
checks them for items that are overdue.
Finally, a check is made whether reminders have to be sent and
dunning levels are allocated.
All dunning data is saved in one dunning proposal.
The dunning proposal can be edited, deleted, and re-created as
often as required until the accounting clerk is satised with the
result.
Four steps that have to be taken by the dunning program to
perform the automatic dunning !rocedure.
"aintain parameters
!roposal run
#dit the dunning proposal
!rint the dunning notices
Lesson 2 Dunning Program Confguration
The dunning procedure controls how dunning is carried out. #very
account that is to be included in the automatic dunning process
needs to have a dunning procedure
$ne-time-accounts also have a dunning procedure that is valid for
all one-time customers.
The dunning procedure can process standard and%or special &%'
transactions
Dunning !rogram settings are divided into following
Dunning procedure
Dunning levels
#(penses%charges
"inimum amounts
Dunning te(t
#nvironment
Dunning !rocedure - The following settings are dened for the
dunning procedure)
The key to be used *for e(ample, +++,-
A description of the dunning procedure
Dunning .nterval in Days / Dunning Frequency) The system
checks whether the run date is at least this number of days after
the date of the last dunning run
.f this is not the case, dunning is not repeated.
The sum of items due from the dunning level) / Dunning level
from which all the due items are totaled.
"inimum days in arrears *account-) At least one item in the
account must have reached at least this number of days0
otherwise, the item is not dunned. An item whose number of days
in arrears is less than or equal to the number of grace days is not
considered due during this dunning run.
'ine item grace period) 1umber of days taken into account
when the due date is determined for the dunning run. A line item
whose number of days in arrears is less than or equal to the
number of grace days is not considered due during the dunning
run.
.nterest indicator) The interest indicator must be entered to
calculate dunning interest.
Dunning letter even if account balance is positive .f this 2ag is
not set, the account balance is always checked) Dunning notices
are only created if the account balance is in debit *that is, the
business partner has an overall payable-.
.f you choose the Always Dun option, dunning notices are
printed even if the dunning proposals have not changed since the
last dunning run. A dunning proposal is considered changed if it
fulflls at least one of the following criteria)
,- At least one item has reached a di3erent dunning level
4- A new item was added to the dunning notice
5- The dunning level of the account was changed
Minimum Amount
.f the minimum amount for overdue items is not reached in a
dunning level, the items in this dunning level are assigned to the
ne(t lowest level and the system checks whether a dunning
notice can then be created in this dunning level.
Expenses/Charges
6ou specify dunning charges for each dunning level.
Dunning charges can be dened for each currency and depend
on the dunning level.
6ou can use the word processing features to print these charges
on dunning forms.
#ither (ed amount or a percentage of the dunned amount.
6ou can dene a minimum amount *7from dunning amount8- for
every dunning level.
Minimum Amount
.f the minimum amount for overdue items is not reached in a
dunning level, the items in this dunning level are assigned to the
ne(t lowest level and the system checks whether a dunning
notice can then be created in this dunning level.
Dunning Text
The dunning program can generate payment advice notes,
dunning notices, and payment forms.
Environment
Depending on the company code and account type
9ompany code data) :pecies whether dunning notices for a
company code are to be created separately by dunning area
rather than by account0 in this case the dunning data in the
business partner;s master record is updated by dunning area. A
dunning area is an organi<ational entity, that is, a substructure of
a company code that is responsible for dunning.
:ort elds) #nvironment= :ort Fields= Dunning 1otice >eader or
Dunning 1otice .tem for sorting dunning notices and items by
certain criteria
:ender details *footer and header- ? Details about your
company such as the company logo, bank details in footer, and so
on
Dunning areas) Dene for each company code :tandard te(ts
have to be assigned to a company code and *optionally- a
dunning area. A standard te(t contains the te(t for the letter
header which can include a company logo and a telephone
number, for e(ample.
Dunning key) species that the line item can only be dunned
with restrictions or must be displayed separately on the dunning
notice
Dunning block reasons) Dunning blocks prevent accounts and
items from being dunned
.nterest) .nterest rate for maintaining the interest on debit
balances *dependent on currency and time-
Dunning grouping &rouping key *document elds with the
same contents, for e(ample, nancial assets management with
identical rental agreements-
Lesson 3 Parameters for Dunning Run
@ #very dunning program run is identied by the following two
elds)
Aun date - The run date does not have to be the actual date
when the program is e(ecuted, but this is recommended. .ts main
purpose is to identify the program run.
.dentication - The .dentication is used to di3erentiate
between programs that have the same run date.
6ou use the parameters to specify which company codes,
documents, and accounts are to be searched for overdue items.
The additional log records the individual processing steps in the
dunning run.
Lesson 4 Dunning Run
The dunning run creates a dunning proposal that can be edited,
deleted, and re-created as often as necessary. .f necessary, you
can automatically print out the dunning notices directly after the
dunning run. .n this case, you decide not to edit the dunning
proposals.
The dunning run can be divided into the three steps above for
more clarity.
Step 1) Account :election. .n this step the program checks which
accounts shall be considered in the dunning run according to the
parameters and conguration.
The following criteria must be fulflle!
A dunning procedure must be entered in the master data.
The date of the last dunning run entered in the account must be
earlier than the dunning interval date of the dunning procedure.
Step "! Dun 'ine .tems. .n this step, the system checks which
line items are overdue in the selected accounts and which
dunning level should be applied.
Step #) Dun Accounts. .n this step, the system checks whether
payments have to be dunned for an account and, if so, which
dunning level should be used.
Bsually the payment terms of a credit memo do not apply.
.nstead, the following rules are valid)
.f a credit memo is invoice-related, it has the same due date as
the invoice.
All other credit memos are due at the base line date.
The due net debit items on the account are cleared with the due
net credit items.
The credit items are assigned to the debit items with the
highest dunning level and are cleared with these items.
.f you have chosen clearing between customer and vendor, the
due net credit items in the vendor account are also cleared with
the items with the highest dunning level. The same dunning
procedure must be dened for both the customer and vendor.
6ou can create dunning procedures with and without grace
days. Chat e3ect do grace days haveD
.f no grace days are dened, the system starts the dunning
procedure as soon as the due date for net payment is reached.
.f two grace days are dened, for e(ample, dunning does not
take place until two days after the due date for net payment.
Due date) Day by which the liabilities should have been paid.
Dunning date) Day when the overdue items are dunned.
#very dunned item must be overdue, but not all overdue items
are dunned.
.f items are overdue but there is a dunning block in the item,
the system adds these items to the blocked items list.
.f payments have to be dunned for an account, but the account
contains a dunning block, the system adds the account to the list
of blocked accounts.
#ach dunning procedure contains up to nine dunning levels.
The dunning notice wording is usually in2uenced by the dunning
level.
The higher the dunning level, the stronger the formulation in the
dunning te(t. #ach item to be dunned is assigned a dunning level
according to its days in arrears.
Ey assigning dunning keys to certain items, you can prevent
these items from e(ceeding a certain dunning level.
The account can only be dunned if at least one item has
reached the minimum days in arrears per account.
The account gets the highest dunning level of all the items to
be dunned. .f all items are dunned with one dunning notice, the
dunning te(t is worded according to highest dunning level.
Accounts in a legal dunning procedure are subFect to a di3erent
rule. .f the start date of the legal dunning procedure is entered in
the account master data, the account is always dunned if one of
the following conditions is fullled)
!ostings have been made since the last dunning run.
The Always Dun in 'egal Dunning !rocedure indicator is
selected.
Lesson 5 Editing Dunning Proposa
@ After the dunning proposal has been created, it can be edited by
a clerk.
@ To support the clerks work, the following lists can be printed)
Dunning statistics
Dunning list
Elocked accounts
Elocked line items
Dunning history
The clerk can)
Elock an account in the current dunning proposal or remove
the dunning block.
Elock a line item in the current dunning proposal or remove the
dunning block.
'ower the dunning level of an item in the current dunning
proposal.
9hange the dunning and correspondence data of an account in
the master record.
This change does not apply to the current dunning run.
9hange a document.
This change does not apply to the current dunning run.
Lesson ! Printing Dunning "otices
The print program for the dunning procedure)
&roups items to be dunned with a dunning notice according to
various rules
&enerates a dunning notice for each group
#nters the dunning date and level in the dunned items and
accounts
.tems that are to be dunned are grouped together in dunning
notices as long as they have the same)
9ompany code
Dunning area *if dunning areas are used-
Account
6ou can also group items by the following criteria. #(amples)
Dunning by dunning level)
.n the company code specic settings for the dunning program,
you can choose whether a separate dunning notice is to be
printed for each dunning level. .n this case, the te(t for the
dunning notice is selected according to the dunning levels of the
grouped items.
&rouping key)
6ou can enter a grouping key in the customer%vendor account to
group items in dunning notices that have the same values in the
elds assigned to the grouping key.
Decentrali<ed processing)
.f a customer has a head oGce with several branch oGces, items
are posted to the central account. As a result, the head oGce
usually receives one dunning notice with all the due items from its
branch oGces. .f decentrali<ed processing is selected in the
branch accounts, dunning are processed locally, that is, the
notices are sent to the branch oGces.
6ou can use cross-company code dunning to combine overdue
items from di3erent company codes in one dunning run. The
overdue items from one customer that e(ist in di3erent company
codes are dunned with one dunning notice. The items are grouped
according to predened rules, for e(ample, by dunning levels,
dunning areas, or dunning grouping, and assigned to one or more
dunning notices. This means that you do not have to send the
customer a separate dunning notice for each company code.