For obvious reasons, a complete and continuous follow-up of outstanding debts is essential for business whenever customer payments are not immediately bound to the delivery of goods and services or drawn automatically using direct debit.
The dunning system in SAP Business One enables you 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.
The dunning system is composed of windows in which preliminary definitions are made. A step-by-step Dunning Wizard guides you through automatic creation of dunning letters according to the selection criteria.
The dunning system covers the following documents:
· Open A/R invoices, including invoices that are partially credited or partially paid
· Invoices that include installments
· A/R credit memos
· Incoming payments that are not based on invoices
To run the Dunning Wizard, you have defined the dunning levels and the dunning terms as follows:
1. You have defined the dunning levels by choosing Administration ® Setup ® Business Partners ® Dunning Levels.
2. You have defined dunning terms in Administration ® Setup ® Business Partners ® Dunning Terms. The dunning terms are based on dunning levels, and contain parameters and values required for the dunning process run.
3. You have defined the default dunning terms in Administration ® General Settings ® BP tab ® Default Cust. Dunning Terms.
4. You have defined dunning terms for customers. (Choose Business Partners ® Business Partner Master Data ® Payment Terms tab ® Dunning Term field.)
You have used the following options to exclude any relevant A/R invoices from the dunning process:
· To exclude a specific invoice, display it before you run the wizard. On the Logistics tab, select Block Dunning Letters. You can deselect the option later to include the invoice in the future dunning process.
· To exclude all invoices created for a specific customer from the dunning process, display the Business Partner Master Data record for that customer. On the Accounting tab, select Block Dunning Letters.
You choose Sales – A/R ® Dunning Wizard and follow the steps listed below. In each step you choose Next to proceed to the next step of the Dunning Wizard, choose Back to return to the previous step, or choose Cancel to cancel the Dunning Wizard creation.
1. Step 1: Wizard Options. You select whether to run a new Dunning Wizard or to load a saved one.
2. Step 2: General Parameters. In this window, you modify a name of the default Dunning Wizard and choose a dunning level.
3. Step 3: Business Partners – Selection Criteria. You choose a range of customer codes for the Dunning Wizard.
4. Step 4: Document Parameters. In this window, you enter the range of the posting dates to include in the Dunning Wizard. In addition, select the relevant document types.
5. Step 5: Recommendation Report. In this window, you enter a new due date and select invoices that are included in the Dunning Wizard for each customer.
6. Step 6: Processing. In this window, you select one of the following options to process the Dunning Wizard:
¡ Save Selection Parameters and Exit
¡ Save Recommendation Report as Draft and Exit
¡ Print Dunning Letter and Exit
If you print dunning letters, SAP Business One creates the dunning letters and saves the dunning run. In addition, the dunning level and the last date of the dunning letter are updated for invoices included in the dunning run. When a dunning letter is created for a customer, the business partner master data record is updated. On the Accounting tab, the Dunning Date field displays the date on which the dunning letters were created for the last time.
To view the history of dunning letters and the list of all invoices, choose Business Partners ® Business Partners Reports ® Dunning History Report.