Hi,
Dunning is actually the process by which you u201Cbillu201D or u201Cinvoiceu201D a customer for past due items.
With regards bad Checks for example dunning procedure could follow these steps:
u2022 Step 1: Phone call to customer on receipt of bad check u2013 at this stage, perform the journal posting outlined in section on Returned Checks
u2022 Step 2: Letter to customer (+10 days)
u2022 Step 3: Letter to CO (+7 days)
u2022 Step 4: Legal letter to customer (u2192 DD139) (+13 days)
u2022 Step 5: Issue DD139 (+10 days)
u2022 Step 6: Follow-up on DD139 (dispersing officer) (+45 days)
u2022 Step 7: Write-off (after 6 months)
Steps 2-6 above will be handled by dunning levels in SAP.
Configuration before dunning can be carried out
Defining Dunning Area
2. Define Dunning Keys
3. Define Dunning Block Reasons
4. Dunning Procedure
u2022 Define Dunning Procedure (T. Code u2013 FBMP), To set up a Dunning Procedure, the following must be specified: number of Dunning Levels (1-9) Dunning Texts, Standard Text can also be included in the Dunning Texts. Dunning Procedure major parameters: Dunning Interval, Number of Dunning Levels, Grace Period
Assign Dunning Procedure to Customer / Vendors Accounts (T. Code u2013 XD02)
Define Correspondence Types (T. Code u2013 OB77)
7. Assign Company Codes to Correspondence company Codes
8. Assign Programs for Correspondence Types (OB78)
9. Dunning Run: Transaction Code: F150
Menu Path: accounting > financial accounting > accounts receivable > periodic processing > dunning.
Note: Whenever you schedule more than one dunning run a day, the "Identification" number must change. You may run several dunning runs on the same date but the "Identification" name must be different as well as certain parameters such as the u201CDunning Dateu201D and u201CDocuments Posted up tou201D date.
Hope this will help.
reward Point if helpful.
Thanks,
Raja
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