What is dunning? What is dunning level..? How many dunning
levels can be configured?
Answers were Sorted based on User's Feedback
Customers with whom you transact business have to pay their
dues eventually. Generally the due date on which the
customers have to settle the dues is stipulated in the
terms of payment agreed into with them.
Now one of the three logical events can happen:
1) Customers pay on the due date specified:
They pay the entire value of money for which you have
supplied materials and / rendered services. Not a bad
situation at all..... you can meet your financial
commitments as planned since you have received prompt
payment ....
2) Customers pay ahead of the due date specified:
This is a better situation for you..... Your money comes
ahead of your original plan and you can be safe about
meeting your financial commitments as
planned ......Therefore, You waive off a small part of the
dues owed by your customers since your working capital is
not hampered.
3)What a mess things are in this business world !. You had
promised money to your creditors assuming that your
customers would pay promptly and that is not happening.
This is a Domino effect commencing with your customers
which you are forced to pass on to your vendors..... That
is not one bit good !!!!. You must do something to prevent
recurrence of such an uncomfortable situation !
What are the corrective measures which you intend to take?
SAP calls it as DUNNING.
As a first step, you need to identify which of your
customers have not paid their dues promptly . You need to
remind each one of such customers about the non-payment and
insist that the dues are settled immediately. This is done
through letter correspondences ( indicating break up of
dues owed by the customers). Some deaf customers who do not
heed your letters need to be reminded often ( that is
periodically , each time the letter sounding a little
sterner than the earlier one.
The second optional step would be to levy penal charges for
the defaulted payment in the following manner:
1. Levy of interest for nonpayment / belated payment
2. Levy of incidental charges incurred with regard to
dunning ( the process of dunning is going to cost you by
way of follow up,dunning and printing costs, maintenance of
additonal records,additional labor incurred by way of wages
to dunning clerks etc...)
Customers who are tone deaf even after repeated reminders
would be handled through a legal process.
This is the process of dunning.
Generally, each time you dun a customer you are crossing
one level of dunning. Though you can dun upto a maximum of
nine times , you would normally resort to legal help after
dunning three or four times, at the most. The number of
dunning levels you need can be configured and theoretically
it ranges from 0 to 9 levels ( 0 if your company is run by
an inefficient management which does not bother to collect
money on time and 9 if your management is too liberal with
your customers !).
I trust this gives you a basic understanding of what
dunning is and what the dunning levels are.....
Is This Answer Correct ? | 134 Yes | 3 No |
Answer / venkat
dunning is remainder notice, dunning level used for
calculation of due dates, maximum dunning levels are 9
Is This Answer Correct ? | 119 Yes | 9 No |
Answer / mytri
Dunning is nothing but remainder to the customer or vendor.
When you customize dunning you have to create dunning area
like at what level you want to use the dunning, like
business area level or company code level. After that you
have to make settings for dunning procedure, in that you
have to define no of due dates and no of dunning levels.
there are maximum 9 levels are there.
Is This Answer Correct ? | 45 Yes | 5 No |
Answer / vivek
I guess you all mean "REMINDER NOTICE" not "remAinder
notice"
Is This Answer Correct ? | 30 Yes | 9 No |
Answer / k s raju
dunning is a statement, it will gives a message to the
customers who are the due to pay at the dunning date. This
dunning statemnent contains who is the company and who is
the customer, customer number,customer due,due date,dunning
charges,dunning level etc...
maximum dunning levels are:9
this dunning levels are control the due dates.
Is This Answer Correct ? | 28 Yes | 10 No |
Answer / rkkantheti
Dunning is reminder for customers and vendors incase of
customer it is used to collect unpaid bills. In case of
Vendor it is used as a reminder for product expiry dates,
for cash discount collections and for credit memos.
Maximum 9 levels avaliable
Is This Answer Correct ? | 16 Yes | 3 No |
Answer / saji
Dunning is the process of methodologically communicating
with customers to insure the collection of accounts receivable.
So Dunning is nothing but reminder.
SAP System allows to dun customers automatically.
process flow:
1.Define dunning procedure T code:FBMP
(D.procedure consist of dunning levels, minimum amt of
dunning, dunning charges,days interval between two dunning
levels etc..)
2.Assign D.procedure to customer T code:FD02
(go to company code data:- correspondence :- select
d.procedure+save)
3.Run Dunning T code:F150
there are 9 dunning level.
Is This Answer Correct ? | 8 Yes | 0 No |
Dunning is a remainding letter that sending to a customer
or vendor to pay the balance or debt amount we have maximum
9dunning level. we can charge, & calculate the interest on
the dunning notice.
Is This Answer Correct ? | 11 Yes | 4 No |
Answer / venkat
dunning is nothing but remainder to the customer or
vendor.When you customize dunning you have to create
dunning area like at what level you want to use the
dunning,like business area level or company code level.
Afer that you have to make settings for dunning procedure,
in that you have to define no of due dates and no of
dunning levels. there are minimum 4 and maximum 9 levels
are there.
Is This Answer Correct ? | 13 Yes | 6 No |
Answer / dinesh lakhotiya
Dunning are applicable only for customers. It is a notice
generated through system which intimates the customer that
he need to pay the amount. Dunning charges are
involvedwhile issuing such notices.
Dunning level are used to calculate the due dates.
However, there are 9 maximum dunning levels.
Is This Answer Correct ? | 50 Yes | 45 No |
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