Dunning
When the customer misses the payment for the outstanding invoice within specified payment due date. The
dunning letter is generated via sap program and send at customer address for reminding the customer
outstanding payment.
The dunning system enables to trace liable customers who have not paid their open invoices within a given time
span. It enables you to handle the process from, for example, sending a reminder to customers of their
outstanding payments through to referring such customers to collections agencies.
Step to Configuration :-
1. Define Dunning Areas.(OB61)
In this step, you can define your dunning areas. Dunning areas are used if several organizational units are
responsible for carrying out dunning within one company code. These organizational units are referred to as
dunning areas. The dunning area can correspond, for example, to a profit center, a distribution channel, a sales
organization or a business area.
Menu Path : IMG Financial Accounting(New)Accounts Receivable and Accounts
PayableBusiness TransactionDunningBasic Setting for DunningDefine Dunning Areas.
2. Define Block Reason for Dunning Notices.
we define the reasons for a dunning block under a key. The key can be entered in an item or in the account of a
customer master. Blocked items or accounts are not considered for the dunning run.
Menu Path : IMG Financial Accounting(New)Accounts Receivable and Accounts PayableBusiness
TransactionDunningBasic Setting for DunningDefine Dunning Block Reasons.
3. Define Dunning Procedures( FBMP)
We can create Dunning text, Dunning level, Dunning Charges and Company code assignment in the dunning
procedure
Menu Path : IMG Financial Accounting(New)Accounts Receivable and Accounts PayableBusiness
TransactionDunningDefine ProcedureDefine Dunning Procedures.
4. Create Dunning Interval in days to Dunning Procedures
We determine at which intervals the allocated accounts are to be dunned for every dunning procedure. During
every dunning run, the system then checks whether the run date is at least this number of days (10 days) since
the date of the last dunning run.
Menu Path : IMG Financial Accounting(New)Accounts Receivable and Accounts PayableBusiness
TransactionDunningDefine ProcedureDefine Dunning Procedures.
5. Define Dunning Levels to Dunning Procedures
we determine number of dunning level set up in dunning procedure.
Menu Path : IMG Financial Accounting(New)Accounts Receivable and Accounts PayableBusiness
TransactionDunningDefine ProcedureDefine Dunning Procedures.
6. Define Dunning Charges to Dunning Procedures
we add the dunning charge as per the dunning level.
Menu Path : IMG Financial Accounting(New)Accounts Receivable and Accounts PayableBusiness
TransactionDunningDefine ProcedureDefine Dunning Procedures.
7. Define Minimum Amounts to Dunning Procedures
Minimum Amount are customized to charge the administration charge to customer with reference to dunning level
Menu Path : IMG Financial Accounting(New)Accounts Receivable and Accounts
PayableBusiness TransactionDunningDefine ProcedureDefine
Dunning Procedures.
8. Assign Dunning Texts and forms to Dunning Procedures
For inserting dunning forms, click Dunning Texts and assign the required forms for the dunning text with reference
to dunning Level.
Menu Path : IMG Financial Accounting(New)Accounts Receivable and Accounts
PayableBusiness TransactionDunningDefine ProcedureDefine
Dunning Procedures.
9. Assign Dunning Procedures to Customer Master - (XD02)
10. Post Customer Invoice - (FB70)
11. Dunning Run - (F150)
