Performing Dunning by Collection Strategy

A diagram compares Dunning by Dunning Procedure and Dunning by Collection Strategy. The former uses fixed levels based on amount and days, while the latter uses a rules engine with collection steps informed by dunning data, credit rating, and history.

Dunning by dunning procedure determines the number of dunning levels and the respective dunning activity sequence depending on the days in arrears and the amount of debt.

Dunning by collection strategy is based on business rules that are evaluated at run-time. This allows for a flexible evaluation of a broad range of parameters. The evaluation of the business rules within the strategy return the next collection step and related activities to be carried out. There's not necessarily a fixed sequence of steps to be carried out one after the other. It's the specific circumstance of an account that determines the next collection step. The data that can be evaluated in the rules engine includes dunning data, dunning history, credit risk data, and much more (including customer-specific tables).

The FI-CA collection strategy is tailored to the specific needs of a mass subledger.

FSCM Collections Management is integrated with FI-AR and cannot be used with FI-CA.

A software interface showing the navigation path to Dunning by Dunning Procedure, along with the configuration screen for a company code (1010). Various settings for account assignments and payment processing are highlighted.

Dunning procedure or collection strategy are the basic solutions of dunning in FI-CA.

Dunning procedure or collection strategy control the dunning proposal and activity run.

Dunning procedure or collection strategy are activated in the FI-CA company code settings.

The Collections Management Grouping Level parameter determines whether the master data is to be grouped at contract account (K) or contract level (V). No assignment (_) means that open items are dunned by dunning procedure and not by collection strategy.

Screenshot of a contract account management software showing General Data and Dunning/Correspondence tabs, with a focus on Dunning Control and Collection Strategy 01. A table below displays details of various Collection Strategies.

Dunning procedure and/or collection strategy are assigned to the contract account, and can be treated individually or can be grouped together for dunning (Grouping field) or collection (Master Data Group field).

A hierarchical list of options in a software interface is grouped into three sections: Dunning (highlighted in green), Dunning Procedure (highlighted in blue), and Collection Strategy (highlighted in red). Each section contains various configuration options related to its title.

Dunning procedure and collection strategy are configured in customizing.

Dunning procedure and collection strategy use preconfigured dunning activities.

Screenshot of the Maintain Collection Strategy interface for BRFplus, showing details of 'Strategy 01' with parameters including Application Class, Event, BRFplus Application, and BRFplus Function. A navigation menu for Dunning by Collection Strategy and Settings in Business Rule Framework is also visible.

The collection strategy defines the sequence of the collection steps according to a rules engine defined in the BRFplus tool (Business Rules Framework).

The collection strategy consists of a BRFplus application and a BRFplus function.

You can use event 0315 to determine the sequence of the collection steps.

A software interface displaying the setup for a collection step titled Reminder Letter Including Fees with related dunning activities. Three sections are shown: the dialog structure, collection step details, and dunning activities list.

The collection step defines, for example, the dunning interval, charge schedule, interest key, and preconfigured dunning activities to be carried out.