A dunning level represents a processing step within a dunning procedure which is implemented once the relevant number of days in arrears has been reached. The system calculates the days in arrears from the due date or the deferral date of the open items for dunning, whichever is the greatest.
A dunning level is assigned to the dunning notice and the individual items in the dunning notice. The dunning level of the dunning notice corresponds to the highest dunning level of its items. The dunning activities are carried out in accordance with the dunning level of the dunning notice.

A dunning procedure is made up of separate dunning levels that are either run in sequence, or can be set manually. You make a number of specifications for each dunning level, including the minimum amount of an overdue item and the number of days in arrears to be reached in order for the item to reach the next dunning level. You also define the dunning activities to be executed for each dunning level, as well as the dunning charges and interest.

You can assign a classification to dunning levels using the dunning level category. When implementing the dunning level, you can also calculate interest for dunning items, as well as various charges. You can thereby define that the interest is calculated before the charges in the dunning activity run. This is necessary for example, if the amount of the charges is to be dependent on the interest calculated. Define an installation-specific function module for event 0360 in the Implementation Guide for Contract Accounts Receivable and Payable under Program Enhancements ® Define Customer-Specific Function Modules. For the interest calculation integrated in the dunning run, for each dunning level, you can define how high the interest amount due must be for it to be posted. You define minimum amounts for the interest to be posted in Customizing under Business Transactions ® Dunning Notices ® Configure Dunning Procedure.
The point in time at which the dunning level is executed is controlled by the number of days in arrears and the dunning frequency.
You can use the new dunning level that an item in the dunning proposal run contains as a grouping criterion. This means that you can ensure that items in a dunning notice have the same dunning level.