Dunning activity with amount limit zero and creditworthiness zero

[Former Member]

Hi experts,

Can you explain why in FI-CA, for each dunning level, you have to define a dunning activity with amount limit zero and creditworthiness zero ?

What is the advantage of doing this ?

Thanks in advance,

Thierno

[Former Member]

Hi Thierno,

The dunning process involves different stages as you would be knowing.

Like first reminder then next dunning level as Legal proceedings and next step on wards till disconnection as per company policy.

Company decides certain amount which piles up as being not paid by customer.

Company chalk out or decides certain levels like 500 Euros for first level, 800 Euros for second level of dunning.

In short:-

Items in a particular dunning level are only dunned if the total amount of the items which (are not paid by customer) are due for dunning in a dunning group; that have reached this dunning level or exceeded the amount limit defined for the dunning level.

I hope this will help you out.

Regards

Sachin

[AmlanBanerjee · Accepted solution]

Hi Thierno,

Every Utility Company, whether operating in a regulated or deregulated market has to follow some norms\laws which can either be set by the government or any other autonomus bodies.

Amount limit is one such functionality in the dunning space which gives the flexibility to set different dunning activities for different amounts under the same dunning level.

Say for example, there is rule that, you cannot send reminder notices to customers below $100.

So in this scenario, you can set a dummy activity against the amount limit.$0.00 and then for the amount limit  $100.00 you can set the dunning activity for generating a reminder notice.

So, if an account is having a overdue balance of $50, then dunning will happen, the level will get updated, but no reminder notice would get triggerred.

Hope it helps in answering to your query.

Thanks,

Amlan

[Former Member]

Thanks Amlan & Sachin for your help.

It's really clear for me.

Thanks again.

Best regards.

Thierno