Dunning............................................................................................................

1
Configuration.....................................................................................................1
1) Configuration Steps:......................................................................................1
2) Glossary.....................................................................................................1
3) Configuration..............................................................................................1
Dunning Processing
Mannual...................................................................................5
Dunning
Configuration
Sending reminders for early payment for over due line items
1) Configuration Steps:
a) Basic setting for Dunning
i) Define Dunning Areas (T Code OB61) - Optional
ii) Define Dunning Keys ( T Code OB17)
iii) Define Dunning Block Reasons ( T Code OB18) - Optional
b) Dunning Procedure
i) Define Dunning Procedures ( T Code FBMP)
ii) Define Dunning Groupings (T Code OBAQ) -Optional
iii) Define Interest Rates (T Code OB42) - Optional
c) Printout
i) Assign Dunning form (T Code
2) Glossary
a) Dunning Areas is a organizational units with in the company code. 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.
b) Dunning Key
c) Dunning Charges: It is the additional claims from vendors or from customers
towards not paying due amount not in time. The dunning charges can be fixed
amount depending upon dunning levels or it can be fixed as % of the due
amount.
d) Dunning Block Reasons: Reasons for not dunning a particular line item or a
particular Customer or vendor. Dunning block reason defined at customer master
for excluding a particular customer or it can also enter for a line item while
entering line item.
e) Dunning Grouping : Grouping of line item for dunning in the similar manner for
a certain condition.
3) Configuration
a) Define Dunning Areas (T Code OB61) Optional
In this step we will create dunning areas for a company code. There may be
more then one dunning area per company code.
b) Define Dunning Keys ( T Code OB17)
In this step we will define
- Dunning Key : It is a 2 character identifier
- Max. Level : Here we mention number of times dunning notices will be sent.
Highest level is 4
- Print Sep : If we checked it the line items are printed separately other wise it will
be grouped together
- Text : Description of dunning key.
c) Define Dunning Block Reasons ( T Code OB18) Optional

In this steps we will create dunning blocking reasons, which will defined at
customer master or line item
d) Define Dunning Procedures ( T Code FBMP)
Besides the main configuration, there are five other segments to be configured
for dunning as dunning procedures. In the main configuration screen we will
define
- Dunning interval days, days between the dunning levels
- No of dunning levels
- Total due items from dunning level , total of due item from the defined dunning
levels.
- Min days in arrears (acct) ; These minimum days in arrears have no influence
on calculating the days overdue.
- Line item grace period ; Grace periods per line item which are taken into
consideration during determination of the due date for the dunning run.
- Interest Indicator ; If dunning interest is to be calculated , interest indicator will
be defined here
Dunning levels segments
- Whether interest will be calculated at each dunning levels.
- Whether dunning notices will be generated , where no changes are noticed
since last dunning notice.
- Whether all line items are required to be printed out.
- Payment deadline dates

Dunning Charges Segments

- From Dunn Amt. Total of all overdue items which are printed in a dunning notice
- The fixed dunning charge in dunning currency can be printed on the dunning

notice
- Dunning charge in percent. The percentage is multiplied by the total of all
overdue items in a dunning notice
Minimum Amount Segments
- Minimum amount of the overdue items which is necessary to set a dunning
level .
- The minimum percentage is multiplied by the total of all open items on a
particular account. A dunning notice is only created at this level if all the items
due at this dunning level have reached at least the level determined by the
multiplication.
- Minimum amount to be reached by interest in order to be identified at this level
in dunning notices.
Note :
1. 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.
2. Dunning Charges : If the dunning notice only contains items in one currency,
this is the dunning currency. If the dunning notice contains items in different
currencies, the dunning currency is the local currency