Determining Dunning Levels
Open items reach a certain dunning level if the number of days in arrears is equal to or greater than the days in arrears specified for that particular dunning level, but less than the days in arrears specified for the next level. When you print the dunning notices, the dunning level is stored in the item.
You have defined dunning levels for your dunning procedure (see below). An open item that is 14 days in arrears would then be assigned to the first dunning level; an item that is 31 days in arrears to the third level, and an item that is 50 days in arrears to the fourth level.
The highest dunning level determined is stored in the master record of the account when you print the letters. This dunning level determines the dunning text and (if one is required) a special dunning form. You can also specify that dunning should be carried out per dunning level. In this case, the highest dunning level of the account does not determine the dunning text or the dunning form; instead, a separate dunning notice is created for every dunning level.
Dunning levels are raised or reduced either by the dunning program or manually:
For those customers for whom you have defined bank collection, line items are taken into account according to the following rules:
For items that have a payment method for incoming payments specified in the items, the system checks whether the item is blocked for payment. If it has been blocked, the item is dunned.
If no payment method is specified, the system checks whether a payment method for incoming payments is specified in the master record. If one exists, the system carries out a further check to determine whether the master record is blocked for payments. If it has been blocked, the item is dunned.
If no payment method is defined in the master record, the item is dunned.