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.
The dunning run should always be started after the payment run to ensure, that the posting situation is as up-to-date as possible. This way, you avoid the dunning of items that would be paid later.
You can either 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 customize and then start the dunning proposal run again.
The dunning proposal- and activity run are started in the same way: entering the parameters and scheduling the start.
The dunning activity run results in the dunning activities execution such as correspondence creation, note to agent or realease to collection agency.
The dunning activity run results in charge and interest postings and in dunning history update as well.
The dunning levels and appropriate dunning activities are determined during the dunning run based on the:
- Dunning history on item level.
- Dunning grouping on contract account level.
- Dunning procedure on contract account or item level.
The dunning activity run can't be deleted after execution like a proposal run, even if the intended action wasn't carried out. Instead, you must reverse the entire dunning run with the SAP Fiori App Reverse Dunning Notices Run or cancel dunning for certain individual items.
The dunning proposal- and activity run are controlled by the dunning procedure on contract account or item level (see next figure).
The dunning procedure is defined in customizing and assigned to the contract account, but can be overridden at document item level.
The dunning procedure is the driver for
- the dunning proposal run to identify the relevant due items and group them to be dunned together.
- the dunning activity run to carry out the dunning activities.
The dunning procedure is made up of different dunning levels to determine the dunning frequency, and the calculation and posting of charges and interests. You enter various information for each dunning level, such as the minimum amount of an overdue item and the number of days in arrears that must be reached before the item is placed in the next dunning level.
The dunning level indicates how often this item has already been included in a dunning run. The highest dunning level reached by any of the items determines the dunning activities. The dunning level of an item can also be decreased by the dunning program if, on the basis of the amount limits, the item would no longer reach this level (after a partial payment).
The dunning levels of a dunning procedure define one or more dunning activities The most common dunning activity is printing a dunning letter. Other examples are explained in the next figure.
The dunning activities are defined for each dunning level of a dunning procedure (see previous figure).
The dunning activities that were carried out are recorded in an application log and in the dunning history.
The following pre-configured dunning activities are provided from SAP:
- Print a dunning letter
- Deactivate an installment plan so that the source receivables are dunned again
- Release receivables for submission to a collection agency
- Set a dunning lock for the contract account
- Trigger an agent notification via workflow
- Request a cash security deposit