Performing Dunning by Dunning Procedure

The dunning procedure is the driver for dunning.

You can define different dunning levels for each dunning procedure to determine the dunning frequency, and the calculation and posting of charges and interests.

You can define minimum amounts and dunning activities for each dunning level.

You can define minimum interest due for each dunning level so that it is posted.

You can allocate a dunning procedure to contract accounts or for each individual line item.

IMG: Transaction SPRO.

Financial Accounting (New) → Contract Accounts Receivable and Payable → Business Transactions → Dunning → Dunning by Dunning Procedure → Configure Dunning Procedure.

Select Dunning Procedure 01, and double-click on Dunning level in the dialog structure on the left-hand side.

Double-click Entry 1 in the dunning level overview.

The dunning frequency is the minimum number of days that must have expired since the issue date of the last dunning notice.

The charge schedule is used to determine the charges that are usually levied in connection with the creation of dunning notices and other correspondence.

You can select Always Dun to trigger a dunning notice at this dunning level as soon as the dunning frequency is reached in the dunning program, regardless of whether the days in arrears or minimum amounts have been reached.

You can select Print All Items to list all items that fulfill the same criteria for dunning grouping in the dunning notice, regardless of whether they're due.

You can select Interest before Charges to make the calculation of dunning charges dependent on whether interest has been calculated for items due for dunning. Usually, interest in the dunning activity run is calculated and posted in accordance with the charges.

You can use function module FKK_SPECIALCHARGE_0360 to restrict the amount of the dunning charge if dunning interest is also to be charged alongside the dunning charge (penalty charges).

The dunning activities that were carried out are recorded in an application log.

You can specify an activity to deactivate an installment plan.

After the installment plan has been deactivated, the source receivables are dunned again.

You can specify an activity to start a workflow to trigger an agent notification.

You can specify an activity to request a cash security deposit (industry solutions).

You can specify an activity to create a disconnection document (industry solutions).

You can specify an activity to release receivables for submission to a collection agency.

You can specify an activity to set a dunning lock for the dunned contract account.

You can enter default values for the duration of a lock in customizing.

Customizing: Financial Accounting (New) → Contract Accounts Receivable and Payable → Business Transactions → Dunning → Configure Dunning Activities.

You can assign any number of dunning activities to various dunning levels.

The dunning activity configuration consists of a function module and an application form.

The application form can be modeled in the print workbench (transaction EFRM).

The application form is needed if the dunning activity creates a dunning notice.

The sample function module contains the string _0350 and starts with FKK_:

• FSC_SAMPLE_0350_CCC

  Print dunning notice

• FKK_SAMPLE_0350_SBHINWEIS

  Send note to agent using SAP Office

• FKK_COLL_AGENCY_RELEASE_0350

  Release items for submission to collection agency

• FKK_RECALL_FROM_AGENCY_0350

  Recall of submitted items from collection agency

• FSC_DUNNING_DEACT_INSTPL_0350

  Deactivate installment plan

• FKK_WLI_CREATE_AND_CLOSE_0350

  Workflow for reminder call

The charge schedule can manage charge data for a maximum of three charge categories:

• Dunning charges
• Payment charges
• Postage charges

The charge schedule can manage industry-specific charges (disconnection, reconnection, or administration charges) and customer-specific charges as well.

The charge schedule can be assigned to correspondence types of a correspondence variant. When these correspondences are created, the system automatically posts the charges defined in the charge schedule.

For the charge category, the main transaction and subtransaction with which the charge is to be posted is determined (real or statistical posting).

For each combination of a charge schedule and a charge category, you can determine how charges are to be calculated depending on the currency, the dunning balance, and creditworthiness.

The dunning run can be carried out in two stages:

• Dunning proposal run to identify and group together all items relevant for dunning.
• Dunning activity run to carry out the dunning activities for the selected dunning proposal.

Before starting the dunning run, you should ensure that the posting situation is as up-to-date as possible, which means that all existing payments should be posted and the clearing run executed. This way, you avoid dunning items that have already been paid.

You can schedule the dunning proposal run and the dunning activity run together or separately. If you schedule both runs together, you lose the option of deleting and recreating the dunning proposal.

You can reverse dunning notices from the dunning proposal. If you would like to have a new dunning proposal, you can delete it, make the necessary changes in the master data, open items, or customizing, and then start the dunning proposal run again.

Along with the dunning history, a dunning activity run results in correspondence, notes for the administrator, and so on, as well as charge and interest postings.

The dunning proposal run determines all items due for dunning and combines them in a dunning grouping.

The dunning proposal run allows preselection for master data to select business partners or contract accounts.

The system looks at the Date of Issue and compares this date to the due date within the item to determine which dunning level is appropriate (see Days in Arrears in customizing of a dunning level) and to determine appropriate charges, if applicable.

Once a business partner is included in a dunning proposal, they will not be included in another proposal run. Only the dunning activity run enters the system date as the execution date of the dunning in the dunning header (field MDRKD).

The dunning proposal then becomes dunning history. This check prevents duplicate dunning letters in case you postpone the dunning activity run.

You cannot run a second proposal run over the same items/accounts unless the first run is deleted.

You can choose Environment → Delete Dunning Proposal Run to delete the dunning proposal.

If it's possible, all items of a business partner are grouped together on one dunning notice. However, there are criteria that dictate separate dunning notices for certain items.

The items are then grouped together into dunning groups on the basis of these criteria. The items are used for checking dunning relevance (that is, amount limits and days in arrears) per dunning group.

The grouping key enables you to use other desired criteria such as business area and division in addition to the standard criteria (dunning procedure, currency, main company code). You then enter the grouping key in the contract accounts for which the grouping is to apply.

You initiate a dunning activity run in much the same way as a dunning proposal run. You enter the necessary selection parameters and then schedule the program run.

If you've configured the correct settings in customizing, the date you entered in the Issue Date field will appear on the dunning letter. It will also be displayed in the dunning history as the dunning execution date.

The dunning levels and appropriate dunning activities are determined based on the dunning groupings and items for dunning.

The dunning activity run can result in a charge or interest posting, or updates in the dunning history and dunning activity history.

Unlike a proposal run, you cannot delete a dunning activity run after its execution, even if the intended action was not executed.

Instead, you must reverse the entire dunning run (transaction FPVC) or cancel dunning for certain items. Choose Environment → Dunning History → Overview → Cancel.

You can call dunning history using the account balance display (transaction FPL9).

You can call dunning history using the dunning history overview (transaction FPM3).

You can see the following information in the dunning history:

• Dunning levels that have been reached
• Dunning activities that have been carried out
• Charges documents that have been posted
• Interest documents that have been posted

On the selection screen, you can specify whether you want to display dunning notices that have been executed or not executed. This enables you to select only those dunning notices without a print date, for example.