Dunning Procedure for Lease-Outs 

Purpose

For dunning outstanding rent receivables on the level of the or main contractual partner (customer).

The dunning procedure for the lease-out is based on the dunning program of the Financial Accounting (FI) application component.

You can make Real Estate-specific settings in Customizing for Financial Accounting as well as in Real Estate to control the dunning activities in rental accounting.

In particular, you can make settings under Dunning grouping by lease-outs and Special treatment for incoming payment methods in such a way that:

    1. Documents or master records with the incoming payment method have to be dunned
    2. Dunning blocks on lease-outs have to be observed
    3. The main contractual partners of the lease-out (master tenant with customer account or subsidizer) and any other business partners (such as guarantors) have to be dunned
    4. The dunning run does not update the highest dunning level of an open item in the customer of a lease-out, but places this information on the lease-out itself ( Example: Dunning Grouping of Lease-out).

For further information, refer to the documentation of the Financial Accounting (FI) component on Dunning.

Prerequisites

Default settings in Customizing for Financial Accounting and R/3 Real Estate

The following settings have to be made for the dunning program:

Financial Accounting

R/3 Real Estate

  • Dunning procedure (dunning interval, grace days, dunning levels)
  • Dunning charges
  • Dunning letters/forms
  • Dunning grouping by lease-outs (Financial Accounting ® Accounts Receivable and Accounts Payable ® Business Transactions ® Dunning ® Dunning Procedure ® Define Dunning Groupings)

Settings for special treatment of real estate (to determine which incoming payment methods are dunnable)

Process Flow

I Editing the master record of the lease-out or tenant with customer account

  1. Make the following settings in the master record:

Lease-out

Contracting Partner with Customer Account

Settings for:

  • Dunning block
  • Dunning area
  • Dunning procedure

Assignment of dunning grouping (Business partner master data screen: Goto ® Company code data ® Dunning data, Grouping key field).

  1. Activate the lease-out and carry out the debit position.

    2. As a result of the debit position, the following information relevant for the dunning program is copied to the document:

    1. Incoming payment method
    2. Dunning area
    3. Dunning block
    4. Contract number

II Starting dunning program in Financial Accounting

Start or schedule the dunning program in Financial Accounting.

Result

The documents are handled the same way as in Financial Accounting:

Without R/3 Real Estate special treatment

With R/3 Real Estate special treatment

Dunning is carried out for all items that have no dunning block and

  • No incoming payment method in the item or customer master record
  • Have an incoming payment method but also a payment block

Dunning is carried out for all items that have no dunning block and

  • No incoming payment method in the item or customer master record
  • Have a payment method in the item that is identified as dunnable in Customizing for Real Estate (=special treatment)
  • And are identified as being dunnable in Customizing

Dunning notices are sent only to customers

Dunning notices are sent to customers and partners flagged for dunning