Effect of Minimum Amounts and Percentage Rates on Dunning Levels
Effect of Minimum Amounts and Percentage Rates on Dunning Levels
To prevent relatively small overdue amounts from triggering high dunning levels, you can specify minimum amounts and minimum percentage rates (see the figure below) for every dunning level. The next dunning level is then triggered only if the amount to be dunned is equal to or exceeds the minimum amount and the minimum percentage rate (with reference to all open items). If this is not the case, the items are assigned to the next lowest dunning level and the system carries out the check again.
During a dunning run, a "dunnable" amount of 100 USD was defined for dunning level one; the total of all open items is 1000 USD. The minimum amount for the first dunning level is 10 DEM, and the minimum percentage rate is 10 percent. In this case, the minimum amount is reached and dunning level one is triggered.
In the next dunning run, the open items are assigned to dunning level two, due to the increased number of days in arrears. The dunnable amount for dunning level two is 100 DEM. The total of all open items has changed, and is now 1100 DEM. The minimum percentage rate is therefore not reached. The amount to be dunned is assigned to the next lowest dunning level (level one) (see the figure below).
For checking purposes, the system determines the amount to be dunned in local currency or in the foreign currency for those accounts that were posted to in a foreign currency only. You therefore enter your minimum amounts in local and/or foreign currency. If the dunning program finds no entry in the selected foreign currency, it determines the minimum amounts in local currency.