Example: Dunning Grouping of Lease-out 

Starting Point

You want to dun several open items outstanding in a lease-out as a total balance and:

You also have to decide how to dun an item for a partial clearing (incoming payment) and how to avoid sending a dunning notice to the customer.

Procedure

To portray this scenario, proceed as follows:

Dunning open items in a total balance

Define a grouping key and assign the tenants with customer account to it.

You can define the dunning grouping in the default values that are in the setting for automatically creating customers (Customizing for Real Estate): R/3 Real Estate ® Partner Data ® Controlling business partner maintenance ® Settings for automatically creating customers.

The dunning run determines the dunning level for each contract and updates the highest dunning level that has been determined for this contract.

Partial clearing of dunned items

If a payment in part is made for a dunned item, you can post the payment in the following way:

Case A:

Open items are cleared and new items are generated

Case B:

Open items are not cleared and a payment on account for the amount of the incoming payment is generated

You generate a new receivable that does not yet have a dunning level. You can usually (manually) transfer the dunning level from the previous receivable later on.

 In this case, the standard system does not support the automatic transfer of dunning levels as verifying the raised dunning level is not always possible (if, for example, the original items have already be archived)

Generate a new open item (in credit) for the old open item (with a dunning level). The new open item correctly portrays the payment history of the tenant:

  • There is a receivable that is dunned
  • A payment has been made

We recommend making postings as described in Case B. Avoid Case A due to loss of important information (how did the original receivable come about / When was it due? / How is it dunned..)

You can view the history more easily when the items are still open. You can see that the tenant has made payment (you can mention the payment in the dunning notice to avoid criticism from the tenant and any court of jurisdiction):

Do not send dunning notice

If a dunning notice should not be sent, we recommend setting a dunning lock in the dunning header of the current dunning run (if you want to set a permanent dunning lock for a lease-out, set the dunning lock in the master data).

The contract or customer is not dunned in the current dunning run and the dunning level is not updated in the customer master record or in the items. The dunning level that remains valid is the one that resulted in the earlier run.

During the next run, the items are automatically dunned with the next dunning level.

Dunning in January results in dunning level 1

Dunning in February leads to dunning level 2. However, if a dunning lock is set, no dunning notice is sent and the dunning level remains at 1

Dunning in March results in dunning level 2