Defining Minimum Amounts

Carla discusses the minimum amounts per dunning level with the configuration expert. Carla notes the settings and enters them in the system.

Minimum amounts are used to prevent relatively small overdue amounts from triggering high dunning levels. For each dunning procedure, you should specify the following:

• The minimum amount and percentage of the overdue items required to reach each dunning level.
• The minimum amount required before interest is calculated for each dunning level.

The next dunning level is then triggered only if the amount to be dunned is equal to or exceeds the minimum amount and the minimum percentage rate with reference to all open items. If not, the items are assigned to the next lowest dunning level and the system carries out the check again.

Let’s start with a screenshot showing an example of the Minimum amounts.

Let's look at the following examples:

1. The invoice due is EUR 100 and the total balance of the customer account is EUR 1000. The minimum amount for dunning level 2 is EUR 100 and 10% is EUR 100. The invoice can be set to dunning level 2.
2. The invoice due is EUR 100 and the total balance of the customer account is EUR 1100. The minimum amount of dunning level 2 is EUR 100, but 10% is EUR 110. This is not achieved with an invoice of EUR 100. Therefore, the next lowest dunning level 1 is assigned.

The total amount of all items in an account with a certain dunning level must be greater than a defined minimum amount. The relationship between the total amount and the total open items must be greater than a minimum percentage. If not, the system sets the items to a lower dunning level.

Usually, the minimum amounts and percentages at higher dunning levels are greater than the minimum amounts and percentages at lower levels.

For our example, in order to prevent trivial dunning notice printing for customers with items on high dunning levels, Carla defines the following minimum amounts: