Executing the Dunning Process

As covered in the previous lesson, accountants use dunning runs to send payment reminders of outstanding debts to customers.

But, how does this process work?

When executing a dunning run in the SAP system, follow these steps:

1. Create Dunning Run

   To create a dunning run, first specify the dunning parameters. Scheduling the dunning run executes various checks:

   • The dunning program determines the accounts/items requiring dunning, the dunning level, and other necessary details.
   • Then it checks whether a dunning notice is required.

   All dunning data replicates in the dunning proposal.

2. Edit Dunning Proposal

   You can edit, delete, and recreate the dunning proposal as often as you need.

3. Create Dunning Notices

   The SAP system creates the dunning notices and updates the dunning data in the business partner master records and the dunned line items.

After scheduling the dunning run, the dunning proposal is determined. This dunning proposal contains all dunnable items of a business partner. This proposal is the basis for the editable dunning proposal list.

Today, Carla's manager wants to show her how to create a periodic dunning run with the Create Dunning Notices app. Setting up the dunning run is the first step to creating a dunning proposal.

In this video, Carla will learn how to:

• Set dunning parameters

• Schedule a dunning run

The first step to creating a dunning proposal is to enter the parameters.

• Run-on date: When the program will execute as planned.
• Identification: The dunning run ID. Use this to differentiate dunning runs scheduled for the same Run-on date.
• Dunning Date: Enter to calculate the number of days in arrears (the length of payment delay). For example, if you run the dunning program on Friday but want to calculate the days in arrears by next Monday, enter Monday’s date in the field.
• Documents Post up to: Specify the last posting date to include document postings in the dunning run.
• Account Restrictions: Enter customer/vendor account number(s) to restrict dunning to specific business partners. Entering an asterisk includes all.
• Additional log: Use this to check whether the dunning run was successful. You can also revise all steps and checks taken during the process.

For more information on how to set dunning parameters, see Setting Dunning Parameters | SAP Help Portal.

The following list gives you an overview of possible reasons:

1. No dunning procedure is entered in the business partner.

2. The business partner is blocked for dunning.

3. The dunning interval in days, according to the assigned dunning procedure, has not yet been reached. The last dunning date in the master record of the business partner is used for the check.

4. The open item is blocked for dunning.

5. The overdue open item has not yet fully exploited the grace days defined in the dunning procedure.

6. The customer has a credit balance.

The following information on the SAP Help Portal provides a detailed insight into the executed checks during the creation of a dunning run:

Determining the Accounts and Items to be Dunned | SAP Help Portal and Dunning procedures | SAP Help Portal.

After executing the dunning run successfully, the proposal list is available for processing. This proposal can either be accepted or changed.

Remember, when editing, you can edit, delete, and recreate the dunning proposal as often as you need.

The Bike Company's accounts receivable department checks the dunning proposal before sending payment reminders – it's part of an accountant's role.

Carla receives an email from a customer – they received an incomplete order. To keep this customer happy, Carla's manager recommends blocking this item on the proposal list for the dunning run.

In this video, you will see how to:

• Edit dunning blocks.
• Change the item's dunning level.

Select the play button to learn how to edit a proposal list using the Create Dunning Notices app.

After the system creates the dunning proposal, the following actions are available for editing the proposal list:

• Block an account or remove the dunning block
• Block a line item or remove the dunning block
• Change the dunning level of an item

These three changes in the dunning proposal apply only to the current dunning run.

For more information related to editing the Dunning proposal, see Editing Dunning Proposals | SAP Help Portal.

The last step in the dunning process involves creating the dunning notices.

Use the Create Dunning Notices app for the following:

• Grouping items within a dunning notice according to configured rules.
• Generating dunning notices for each group.
• Entering the dunning date and level for dunned items and accounts.

Items can be grouped in one dunning notice for the business partner. The system uses the highest dunning level's text in the dunning letter.

You can also set custom grouping options in SAP dunning configuration.

For further information, see:

SAP S/4HANA: Special Functions in Dunning | SAP Help Portal and Special Features for Dunning Using Dunning Levels | SAP Help Portal

SAP S/4HANA Cloud: Creating Dunning Notices | SAP Help Portal

The system prints dunning notices in a sequence defined by sort criteria in the configuration settings for dunning.

Carla found her first time creating a dunning notice challenging, but her manager has provided her notes to go through each step.

Now Carla needs to print out the dunning notice and review the results before she finishes up for the day.

In this video, Carla will learn how to:

• Schedule a dunning notice printout.
• Print out the dunning notices.
• Review the dunning process results.

To create the Dunning notices, choose the Dunning Printout (Schedule dunn.notice printout) button in the Create Dunning Notices app.

The system uses the highest dunning level's text in a notice when the items are grouped in one dunning letter. The dunning date and level update for the business partner master record and dunned line items. In the business partner master record, the last run transfers only the highest dunning level.

Use the Display Dunning History app to obtain a detailed insight into the previous dunning history of a business partner.