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Answer
The SAP System allows you to ‘dun’ (remind) business partners automatically. The system duns the open items from business partner accounts. The dunning program selects the overdue open items, determines the dunning level of the account in question, and creates dunning notices. It then saves the dunning data determined for the items and accounts affected. You can use the dunning program to dun both customers and vendors. It may be necessary to dun a vendor in the case of a debit balance as a result of a credit memo.
Dunning is administered through a Dunning Program, which uses a dunning key (to limit the dunning level per item), a dunning procedure, and a dunning area (if dunning is not done at the Company Code level).
Dunning is the process by which payment chasing letters are issued to customers. SAP can determine which customers should receive the letters and for which overdue items.
Different letters can be printed in SAP depending on how far overdue the payment is; from a simple reminder to a legal letter.
The dunning level on the customer master indicates which letter has been issued to the customer.
Transaction code: F150
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Configuration
Dunning Configuration is not designed. This may be configured basing on the client’s credit policy whenever required and basing on the following documentation.
Define Dunning Areas
In this step, dunning areas can be defined. Dunning areas are used if several organizational units are responsible for carrying out dunning within one company code. These organizational units are referred to as dunning areas. The dunning area can correspond, for example, to a profit center, a distribution channel, a sales organization or a business area.
The individual dunning areas can use different procedures
or the same dunning procedure.
The dunning areas with the required dunning procedures
are to be entered into the customer or vendor master record if you use
different dunning procedures.
Otherwise, the system uses the standard dunning procedure.
The dunning area is then entered in the line item. The system enters the
dunning area into the master record automatically with the corresponding
data.
SAP Reference IMG -> Financial Accounting -> Accounts
Receivables and Payables -> Business Transactions -> Dunning -> Basic Settings
for Dunning -> Define Dunning Areas.
Transaction Code OB61
Define Dunning Keys
Define your dunning keys in this step. With the dunning
keys, you can limit the dunning level of an item. Define either instead
of or in addition to the dunning key whether the items with a dunning key
are to be displayed separately in the dunning letter
SAP Reference IMG -> Financial Accounting -> Accounts
Receivables and Payables -> Business Transactions -> Dunning -> Basic Settings
for Dunning -> Define Dunning Keys.
Transaction Code OB17
Define Dunning Block Reasons
In this step, you define the reasons for a dunning block
under a key. The key can be entered in an item or in the account of a business
partner. Blocked items or accounts are not considered for the dunning run
SAP Reference IMG -> Financial Accounting -> Accounts
Receivables and Payables -> Business Transactions -> Dunning -> Basic Settings
for Dunning -> Define Dunning Block Reasons.
Transaction Code OB18
Dunning Procedures
In this activity you enter the settings that control the dunning program by:
Specifying the company codes to include in dunning: You
specify these company codes when configuring the dunning program
Setting up the dunning procedure you want to use: Dunning
procedures are company code independent. They determine the dunning interval,
the grace periods for the due date determination, and the number of dunning
levels. You can also set the dunning level at which you want to list all
due items from an account in the dunning notice.
Setting the dunning charges: You can either specify a
fixed charge or have the system calculate the charge on the basis of a
percentage rate you specify.
Specifying the net payment due date at which a particular
dunning level is reached.
Specifying the dunning notice you want to send to your
customers: You have to define one or more forms for the notice.
SAP Reference IMG -> Financial Accounting -> Accounts
Receivables and Payables -> Business Transactions -> Dunning -> Dunning
Procedures -> Define Dunning Procedures.
Transaction Code FBMP
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Self-Test Questions Answers
1) Which accounts shall be considered in the dunning run?
A Dunning Accounts
B Account Selection.
C Dunning line items.
D Reconciliation account.
2) What is the highest organizational unit which usually perform dunning?
A Client
B Business Area
C Company Code
D Chart of account
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Answers
1) B D
2) C
