With the component Dunning, you can send payment reminders or dunning notices to your business partners automatically to remind them of overdue payables and to request payment. You can also trigger other industry-specific dunning measures (dunning activities).
Dunning takes place in two steps with the dunning program. In the first step, the dunning program determines
· The contract accounts to be dunned, together with the items due for dunning
· The valid dunning procedure and the related dunning levels for the individual items
· The dunning groupings in which the items were summarized
The dunning program uses this information to create a proposal structured by dunning groups.
In the second step, the dunning program triggers the relevant dunning activities for the individual dunning groupings.
You
are free to choose the criteria by which dunning notices are grouped. For
example, you can create a dunning grouping using the criteria business
partner, currency, company code, and dunning recipient. You can
also define the dunning activities as required. For example, a dunning level
can trigger the printing of a dunning notice, or lead to termination of a
contract or to a lock. The dunning activities are industry-specific, but you
can also define them specifically for your installation. In addition to the
different dunning activities, you can also calculate dunning charges and
request them from your business partners. You define the calculation rules
using currency- and creditworthiness-specific charges lots. You can also
calculate interest on items due for dunning in the dunning run by calling up
the component Item Interest Calculation. You can post the charges and
interest relevant to the G/L or statistically. By specifying amount limits in
Customizing for the charges schedule, you can prevent small amounts being
dunned. You can lock individual items or complete contract accounts for
dunning by specifying appropriate dunning lock reasons at the required level;
you can also define the dunning lock for a specific time period. If an item
has a deferral date, it is not dunned until the deferral date has been
exceeded.
For installment plans you can use an alternative dunning procedure. In that
dunning procedure, you can specify that the installment plan is to be
automatically deactivated when a certain dunning level is reached, and the
source receivables are then included in the next dunning run.
The system records all dunning data for each item for dunning in a dunning
history. There you can find out about the individual dunning steps. The
dunning program uses the dunning history to determine the dunning levels.
You can print correspondence using the component Correspondence or
using the application forms of the Print Workbench
that you have defined.
Note for Industry-Specific Component Utilities (IS-U)
You can also dun budget billing requests. The dunning run can create lock documents automatically. For more information about lock documents, see the documentation of the industry solution component Utilities under Contract Accounts Receivable and Payable ® Locking/Restarting a Utilities Installation and under Customer Service ® Locking/Restarting a Utilities Installation. You can postprocess the dunning-relevant data manually in the dunning proposal.
Note for Industry-Specific Component Telecommunications (IS-T)
You can postprocess the dunning-relevant data manually in the dunning proposal. If receivables have reached a specific dunning level, you can lock the contract account or the service for a business partner automatically in the dunning activities run. (See IS-T Telecommunication Services in RM-CA ® Locking Services via the Dunning Run (IS-T)).
Industry-Specific Component Insurance (FS-CD)
The following dunning procedure types are supported:
·
Individual
dunning notice
In an individual dunning notice, all items in a contract are considered
independently of one another. This means that you can have several dunning
procedures for one contract.
·
Total
dunning notice
In a total dunning notice, all items in a contract are dunned with one dunning
procedure.
·
Contract
dunning notice
In a contract dunning notice, only one current dunning procedure exists at any
one point in time. This refers to the oldest item.
·
Legal dunning
notice
For legal dunning, all items to be dunned for a contract account are dunned
for all contracts covered by that account.
The dunning procedures to be used are determined in the dunning proposal run and saved in the item.