Dunning Process

• SAP automates the dunning process, reminding customers to pay overdue invoices at specified intervals, based on predefined rules, and can escalate the level of reminders.

• The system sends customers dunning notices reminding them of outstanding payments, including details like overdue amount, due date, interest, charges, and payment request.

• The system escalates the customer's overdue amount after receiving a dunning notice, with formal language and continued until the overdue amount is paid or legal action is taken.

Steps in the Dunning Process:

1.     Dunning Configuration (FBMP):

             Before the process can be run, the dunning procedure must be configured in the SAP system

• Dunning Levels: Different levels of reminders (Ex: Level 1, Level 2, Level 3) with escalating seriousness.

• Dunning Interval: The number of days between each dunning level (Ex: 7 days after due date for Level 1, 14 days for Level 2).

• Dunning Charges: Optional charges applied to the customer for repeated reminders.

• Interest: Optional interest applied on the overdue amounts.

• Dunning Texts: The messages used for each dunning level.

2.     Dunning Run (F150):

     The dunning run identifies overdue invoices, determines customers' dunning levels, calculates total overdue amount, and includes additional charges like fees or interest.

3. Customer Master Data Setup:

          Customers can be assigned a specific dunning procedure in their master data, which includes any set dunning block for the process.

4.     Display the customer line items (FBL5N):

    To display the customer line items (Ex: to check open invoices and dunning status)