Dunning

SAP FICO WHAT IS DUNNING
Dunning is kind of reminder we mostly send to our customers and some time vendors as well to collect our bills and invoice on time its is statement which showing how much amount is due.

When we sending notice to our customers about payments due we define dunning level which level is best for that customer we can define 1 to 9 levels and final levels is kind of legal notice we sending to customers about his due amounts.

As dunning level getting higher the content of letter is changed.

Dunning configuration steps

1-Define Dunning Area
2-Define Dunning Key
3-Define Dunning Block Reasons
4-Define Dunning Procedures Tcode FBMP


Dunning procedure
a)Define dunning interval reminder may be weekly, fornightly,monthly etc.
b)Define no. of days is arrears after which dunning notice will be sent
c)grace period per line item
d)interest calculation indicator for calculation of dunning interest
e)dunning key for dunning procedure.

Dunning levels
a)the first dunning level included the line item grace period
b)if option always dun selected the dunning notice will still printed even not change have been made in account
c) in dunning notice total account balance or item wise details can be print

Expenses/Changes
a)dunning charges may be depending on dunning level
b)dunning charges is either fixed for percentage of amount dunned
c)you can either choose fixed or precentage of amount dunned
d)dunning charges are define for currency wise

Minimum amount or percentage must be specifying for dunning notice the dunning notice will not generate until overdue item reached up to dunning level.
Minimum amount can also be fixed for calculating interest on dunning amount
dunning text must be defined according to the dunning level
predefined form of dunning text is available in sap
dunning program can generate payment advice note dunning notice and payment form
Environment
a) company code
b)short field
s)sender details
d)dunning areas
e)dunning key
f)dunning block reason
g)interest
h)dunning grouping

Running of dunning program
enter parameters
a) run date
b)identification
c)selection of company codes may be single company or no of companies
d)range of customer/vendor account
e)document define up to which posting date include in dunning run

Dunning run