Dunning

1. Dunning

Dunning is the process of sending reminder notices to customers with overdue payments, requesting payment of the outstanding amount.

It is the process of collecting money from customers. As a process, it generally starts with polite requests, perhaps verbally, followed by e-mails and letters that might escalate to legal threats before the account is written off and passed to a collections agent.

1.1 Dunning

This window is used to define the name of dunning and same will be used while create dunning run process.

To open the Dunning window, navigate to Menu>Financial Management>Accounts Receivables>Dunning or search for Dunning in search utility available in menu itself.

Click on the Dunning option available in menu. After clicking on that option, Dunning window will open as shown in the below screen shot.

To create a new ‘Dunning’ user need to click on icon available at line.
The system auto fills the Tenant name in the ‘Tenant’ field.
Select the relevant organization name from the ‘Organization’ dropdown field.
Provide a meaningful name as Dunning for the in the ‘Name’ field.
Description is an optional short description of the record
The user has the option to make the record Active or Inactive by using this ‘Active’ check box.
Once all the details are filled click on icon to save the details.

1.1.1 Level

Level tab is used to create multiple levels under one Dunning record and set conditions for each level e.g. Days after due date, charge amount etc.

To create a new ‘’Level’ user need to click on icon available at line.
System will auto fills the fields Tenant, Organization, Dunning fields.
Enter the name of level of dunning in the ‘Name’ field.
Description is an optional short description of the record.
Enter the number of days in ‘Days after due Date’ field. It indicates the number of days after the payment due date to initiate dunning. If the number is negative, it includes the not due invoices. It will check the no of days define and add the grace days to pick the records. If Day after due is in Negative – it will pick the records for future dates also as per number of days defined.
If ‘Show All Due’ checkbox is set as true then system will overwrite the “Day after due” value and show all invoice schedules that are due to dunning date.
If ‘Show Not Due’ checkbox is set as true then system will overwrite the “Show all Due” and “Days after due” value and show all invoice schedules that are not paid. It includes all not due invoices
Enter the number of days in ‘Days between dunning’ field. It indicates the number of days between sending dunning notices. It will check the above conditions and show the invoice schedule that are not available in the previous dunning run as per the days defined.
If ‘Charge Fee’ checkbox is set as true and value is entered in fee Amount field then system will add a line on entry tab of dunning run window as Fee amount defined.
If 'Credit Stop' checkbox is set as true then system will set Credit Stop in business Partner window after dunning is processed.
If 'Set Payment Term' checkbox is set as true and value is selected in payment term field then system will set Payment term which is defined on dunning level in business Partner window after dunning is processed.
If 'Collection Status' is selected then system will set collection status on invoices which is defined on dunning level after dunning is processed. If not filled the invoice will be marked with Collection Status as “Dunning”
Click the icon to save the record.

The invoices are not considered if collection status of invoices is set as Collection Agency, Legal Procedure or Uncollectable

1.2 Bind Dunning To Business Partner

Dunning can be bind to business partner in two ways:

Customer Master
Business Partner Group.

If user leaves the dunning empty for the Customer Master, then the dunning of the Business Partner group will be used.

1.3 Dunning Run

Dunning Run window is used to select the dunning and their level.

To open the Dunning Run window, navigate to Menu>Financial Management>Accounts Receivables>Dunning Run or search for Dunning Run in search utility available in menu itself.

Click on the Dunning Run option available in menu. After clicking on that option, Dunning Run window will open as shown in the below screen shot.

To create a new ‘Dunning Run’ user need to click on icon available at line.
The system auto fills the Tenant name in the ‘Tenant’ field.
Select the relevant organization name from the ‘Organization’ dropdown field.
Enter Dunning Date. This is the date which will be taken into account to calculate the due days.
Select the ‘Dunning’ and ‘Dunning Level’ from the dropdown fields.
'Description' field is an optional short note about the Dunning.
Click the icon to save the record.

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1.3.1 Create Dunning Run

Create Dunning Run process is used to fetch data from ‘Invoice Schedules’, ‘Cash Journal’, ‘Post Dated Check’, ‘GL Journal’ and ‘Payment’.
This Process will fetch unpaid invoice schedules and unallocated payments and set same on entry tab of Dunning Run window
Invoices Schedules includes AR Invoices, AP Invoices, AR Credit Memo, and AP Credit Memo and ‘Payment’ includes AR Receipt and AP Payments according to the selected parameters and dunning level.
All cash journal where Cash Type = Business Partner, needs to be consider that are not allocated.
Cash Receipt/Payment Return will come in negative and Cash Payments/Receipt Return will come in positive.
All GL journals that Debit/Credit against the business partners needs to be consider that are not allocated and whose selected account has ‘Allocation Related’ checkbox true on element value tab of Chart of Account window. Credit’ will come in negative and ‘Debit’ will come in positive.
On ‘Create Dunning Run’ process, need to add one checkbox ‘Include PDC’. If this checkbox is true, then system will add those PDC details on line tab which are against Business Partner, whose payments are not generated.
If payment is generated from PDC but not allocated, single record should be shown as PDC doc number and Payment.
PDC Receivable will come in negative and PDC Payable will come in positive.

Click on ‘Create Dunning Process’ button. It will open the process confirmation pop up as showing in the below screen shot.

If user set 'Include Disputed' checkbox as true, then all the disputed invoices are also including.
If user set 'Only Sales Invoices' checkbox as true, then system pick the records only from Invoice (Customer) else data come from Invoice (Customer) and Invoice (Vendor). This does apply for AR Payment or AP Payment.
If 'Sales Rep' is selected then system will pick invoice data according to selected sales Rep else system will set sales rep which is defined on customer master window and If sales rep not defined on customer master, it will not set ‘Sales Rep’ on entry tab.
If 'Dunning Currency' is selected in parameter, then system will pick data according to selected Currency and set same on ‘Currency’ field on entry tab.
If user set ‘Include All Currencies' checkbox as true, then system will pick the records of all currencies and converted the amount with selected “Dunning Currency” else system will pick the records of currency which is selected on ‘Dunning Currency’ parameter.
If 'Business Partner' is selected, then system will pick Invoice and payments of selected Business Partner else records of all Business Partners will be picked.
If 'Customer/Prospect Group’ is selected, then system will pick Invoice and payments of selected Business Partner else records of all 'Customer/Prospect Group’ will be picked.
'Include PDC' checkbox allows the system to add unallocated post dated check records.
Click on ‘OK’ button. Message will come in taskbar to display the number of entries created through this process and System will update the Entry tab and Line tab according to selected parameter & Dunning level

1.3.2 Print from header

Earlier there was 'Print dunning letter' process to print the dunning records but now user can do print from the header of the Dunning run window.

It will show all the Line records with respect to the business partner on entry tab.

1.3.3 Entry

Entry tab indicates the customer information of all Invoices schedules which are fully or partially unpaid. It also includes unallocated payments.

System updates this tab according to selected parameter on ‘Create Dunning Process’ and Dunning level as shown below:

System picks customers whose invoices are unpaid or partially paid according to selected Dunning level. User set the dunning for customer. If user leaves the dunning empty for the BP, then the dunning of the BP group will be used.

System will set Customer location based on following cases:

Customer has multiple locations

If no location have ‘Is Pay from’ checkbox true then it skip the particular customer.
If multiple locations have ‘Is Pay from’ checkbox true then system pick location which is latest updated.
If single location has ‘Is Pay from’ checkbox true then system pick that location only

Customer has single location

In case of single location ‘Is Pay from’ checkbox true then system pick that location
In case of single location ‘Is Pay from’ checkbox false then system pick that location

Customer has no location

System skips the particular customer.

System will set Customer Contact based on following cases:

Location (Which is set on entry tab) has multiple users

System will pick last updated user that is having Isemail checkbox true or notification type as EMail+Notice, EMail or EMail+FaxEMail.

Location (Which is set on entry tab) have single user from many users

System will pick that user if having Isemail checkbox true or notification type as EMail+Notice, EMail or EMail+FaxEMail else it will not pick that user contact on entry tab.

Location (Which is set on entry tab) has no user from many users

System will not pick that user contact on entry tab.

Location (Which is set on entry tab) has no user from single user

System will pick that user if having Isemail checkbox true or notification type as EMail+Notice, EMail or EMail+FaxEMail else it will not pick that user contact on entry tab.

Customer has no contact

System will not set contact on entry tab.

Currency is set which is selected on Dunning Currency on parameter of ‘Create Dunning Run’ Process.

If 'Sales Rep' is selected then system will pick data according to selected sales rep on parameter and same set on this tab. If sales Rep is not selected on parameter then system will set sales rep which is defined on customer master window. If system not finds sales rep on customer master, it will not set on this tab

Amount is the sum total of converted amount of all lines.

The Quantity indicates the number of lines created for this document.

Note is an optional short description of the record

On this tab user can push the “Print” button to create the Dunning letter.

1.3.4 Line

Line tab indicates the all Invoices which are fully or partially unpaid. It also includes the payments that are not allocated.

System updates this tab according to selected parameter on ‘Create Dunning Process’ and Dunning level as shown below:

System picks all Invoices which are fully or partially unpaid. It also includes the payments, cash journal, GL journal and PDC that are not allocated according to selected Dunning level.
'Amount' indicates the total amount of Invoice or Payment depends upon the reference of payment or Invoice.
'Open Amount' indicates the due amount of invoice schedule if invoice reference is available else unallocated payment amount will display
'Converted amount' indicates the amount in currency which is selected on parameter while run ‘Create Dunning R/un’ process also the conversion date will be consider as system date.
'In Dispute' checkbox indicates the invoice is disputed or not
'Days due' indicates the number of days overdue/under due for payment which is calculated based on dunning date. If value is in negative, then it indicates that invoice is under due.
'Times dunned' indicate the number of times dunned previously.
The 'Fee Amount' indicates the amount which is defined on dunning level
The 'Total Amount' indicates the total document amount which includes converted amount and fee amount.

1.4 Print Dunning Letters

Print Dunning Letters or send them as PDF attachments to the Business Partner Contact with a valid Email address. System will send Email as PDF attachments to the Business Partner according to the selected mail template and dunning run.

To open the Print Dunning Letters, navigate to Menu>Financial Management>Accounts Receivables>Print Dunning Letters or search for Print Dunning Letters in search utility available in menu itself.

Click on ‘Print Dunning Letters’ button. It will open the process parameter pop up as showing in the below screen shot.

If 'EMail PDF' checkbox is set as true, then system will create a PDF for each letter (entry) and send an e-mail with the PDF attached and using the Mail Template
If ‘Email PDF’ checkbox is set as false on ‘Print Dunning Letters’ Process then PDF Print format will open. System will pick Print format linked with Entry tab.
Single PDF will be generated for all customers and each customer’s data will start from new page.

Select ‘Mail template’ and ‘Dunning Run’ from the dropdown fields.

If 'Only If BP has Balance' checkbox is set as true, then System will send email as PDF attachments to the Business Partner only if Business Partner has outstanding Balance

If 'Only If BP has Balance' checkbox is set as false System will send email as PDF attachments to the Business Partner whether Business Partner has outstanding Balance or not

Click on ‘OK’ button.

System will send Email with attached PDF according to selected parameter on process.

1.5 PDF Format of Dunning

There are two sections in this format. Upper section pick the data of invoice and below section pick the data of Payment, Cash journal, GL Journal and Post dated check. It picks all the data from the line tab of Dunning run window.
In case of Cash journal, system pick Voucher number as document Number which is available on Cash journal Line
Payment method will become cash in case of Cash journal as document type.
For Transaction date column, system needs to fetch transaction date and Statement n case of Payment and Cash Journal respectively.
In case of Post Dated Check, system needs to pick Cheque date as Transaction/ Statement/Cheque Date.

Sr. No	Document Type	Document No	Payment Method	Transaction/ Statement/ Cheque Date	Payment Amount	Amount In (Currency)*
1	Cash journal		Cash
2	PDC Receivable		Cheque
3	PDC Payable		Cheque
4	GL Journal
5	GL Journal Batch