Determining the Accounts and Items to be Dunned
This function determines the accounts and business partners to be dunned, and the items that are overdue.
The system determines the accounts and items to be dunned in two steps. Firstly, the dunning program checks the accounts and the items.
Processing the Accounts
The dunning program checks whether an account needs to be dunned as follows:
- It checks the fields Dunn.procedure (dunning procedure) and Last dunned (date of last run) in the customer master record to determine whether the arrears date or the date of the last dunning run lies far enough back in the past.
- It checks whether the account is blocked for dunning according to the Dunning block field in the customer master record.
Following these checks, the account in question is either released for dunning or rejected. If the account is released for dunning, the dunning program processes all open items that were posted to this account on or before the date entered in the field Documents posted up to.
- It checks each open item in an account as to whether the open item:
- Is blocked for dunning
- Is overdue according to the date of issue, the base date, the payment conditions, and the number of grace days granted
Following these checks, the open item in question is either released for dunning or rejected. If it is released for dunning, the dunning program calculates the following:
- How many days the open item is overdue
- Which dunning level the open item has according to the dunning levels specified in the dunning procedure.
From these calculations, open items with specific dunning levels are determined for an account, whereby the dunning level of the account is equal to the highest dunning level of an open item.
Processing the Accounts
Once the dunning program has determined which open items to dun and the dunning level for the account, it processes each account by making the following checks:
- Does the customer (or vendor) have a debit balance with regard to overdue items and all open items? If not, the account is not dunned.
- Is the total amount to be dunned and the percentage of all open items more than the minimum amount and percentage defined in the dunning procedure? These minimum amounts are defined for each dunning procedure, currency, and dunning level, and may be zero (no minimum amount required).
- Is the dunning level for the account or the overdue items higher than it was for the last dunning run? If not, are there new open items to be dunned (with a previous dunning level of 0)? If not, does the dunning procedure for this level specify that dunning be repeated? If the answer to these three questions is no (that is, the dunning level of both the account and the overdue items has not changed, there are no new open items to be dunned, and dunning is not to be repeated), the account is not dunned.
After the account is released for dunning, the next account is tested in the same way.
After these processing steps, the program creates a list of all the accounts and open items that have been proposed for dunning (Dunning proposal list). The program assigns a dunning level to the account according to the highest dunning level of an open item in the account.