Dunning Processing Manual

A. Dunning Process Steps

I ) Setting Dunning Parameters
Before you can start the dunning run, you have to enter dunning parameters. You use these
parameters to define when, for which period, for the dunning program should consider which
company code, for which business partners, and so on.

Procedure
1. Path :SAP Easy Access ->Accounting -> Financial Accounting -> Accounts Receivable/Accounts Payable -> Periodic processing -> Dunning. ( T Code F150)
The Dunning screen appears.

2. Enter the following data:
·  Date of execution Enter the date for which the dunning run should be executed.
·  Identification Enter an alphanumeric key that uniquely identifies the dunning run. This is particularly useful if you schedule several dunning runs for the same day.
1. Choose the tab Parameters.
Here, you can either enter dunning parameters, or copy the parameters from a previous dunning run (choose ). Otherwise, enter the following data:
·  Dunning date. Enter the date to be printed on the dunning notices. This date is then the basis for calculating the days in arrears. For example, if you run the dunning
program on Friday, but want to calculate the days in arrears up until Monday, enter Monday's date in this field.
·  Documents posted up to Enter the date up to which documents should be considered in the dunning run. The deciding factor is the posting date of the document. Invoices that you post after this date are not considered.
·  Company code Enter the company codes that you want to dun.
·  Account restrictions (optional) If you want to restrict dunning to specific customers or vendors, enter the required data. You thereby restrict the number of accounts to be dunned.
To clear items with each other from a business partner that is both a customer and a vendor, enter both account numbers. The dunning program then determines a joint balance (see Clearing Customers and Vendors).
You can make further restrictions to the dunning run. Choose the tab Free selection.
You can enter up to eight additional selection criteria for accounts and documents. You can use fields from tables BSID, BSIK, KNA1, KNB1, KNB5, LFA1, LFB1, LFB5 as selection criteria.
You can assign values to these fields, and include or exclude those values during the search. The system expects the entries to be made either as a list of individual values, for example, value 1, value 2, value 3, or as a list of intervals, such as (from value 1, to value 1), (from value 2, to value 2). However, you can enter individual specifications and intervals at the same time. A comma must separate them, and no blanks should be used. Set intervals between brackets - (" "). Specify individual values using the defined field length; do not omit leading zeros.

Selections for the dunning run

In addition to the parameters on the parameter screen, the above-mentioned settings also restrict the dunning run in the following way: From the chosen customers, only those who live in postal code area 67000 and 67999, and those from the city with postal code 69190 are included in the dunning run. Documents are then only included if the amount in document currency is between 1000 and 10000 currency units. Documents within the document number interval 140005645 and 150000000 should not be included in the dunning run.

2. Save your entries and then choose the Status tab. Here, the system displays the current status of the dunning runs. You have the following display and evaluation options:
·  Log Once the system has carried out the dunning selection, you can check the log to see whether errors occurred. Choose Log.
·  Dunning list You can also look at the list of accounts and open items to be dunned by choosing Dunning list.
·  Dunning statistics To call up the dunning statistics, or the lists of the blocked accounts or blocked items, choose Goto and then Dunning statistics, Blocked accounts, or Blocked line items.

ii) Creating Dunning Proposals
The dunning program creates a dunning proposal. You can also print dunning notices at the same time.

Prerequisites
Make sure that you have defined all of the required dunning parameters ( As described at point 1)

Procedure
1. On the Dunning screen, choose Schedule.
2. To start the dunning run immediately, select the Start immediately field.
To schedule the dunning run, enter the start date and time.
If you want to print the dunning notices straight away or schedule them, you can no longer edit the dunning proposal.
If you want to be able to edit the dunning proposal, you should carry out printing separately.
3. To have the dunning notices printed after the dunning run, select Dunn. print with scheduling?
4. Choose Schedule.

Result
The system outputs a list with all items that are overdue and can be dunned.

iii) Editing Dunning Proposals
You can edit the dunning proposal, raising or lowering the dunning level of an item, or blocking an item so that it does not appear in the dunning notice. You can increase the dunning level of an item by a maximum of one level higher than it was the last time the dunning program was run. However, you can lower the dunning level of an item to several levels lower than in the previous dunning run.

Displaying Lists

After you have carried out the dunning selections, you can display lists with evaluations of the dunning run. To display the evaluations, on the Dunning screen, select the required list under Goto

. Dunning statistics
The dunning statistics show:
·  The number of accounts dunned
·  Account display broken down by items
·  Item display with dunning level, amount, and currency
·  Dunning lists
The dunning list contains all the items that can be dunned for the dunning notice printout; you control the selection of the fields displayed via the default settings in the SAP List Viewer.

To display a list of all the items checked, choose Change dunning notice.You can also access and edit the texts for individual line items from a selected dunning list.
·  Blocked accounts
·  Blocked line items

Editing Dunning Proposals

The dunning selection run generates a dunning proposal. This contains the open items that the dunning program has selected for dunning. You can either accept or change the dunning proposal. If you change the dunning proposal, these changes are recorded in an additional log. You can view or edit dunning proposals. You can:
·  Raise or lower the dunning level of an item
·  Block an item from being dunned
·  Block an account for the current dunning run or remove the block
·  Block an account in the master record for dunning or remove the block
·  Block a document for dunning or remove the block
To edit a dunning proposal, proceed as follows:
1. When the status display Dunning selection is complete appears on the Dunning screen, choose Dunning notices -> Change dunning notices.
2. Choose Enter to display all the accounts to be dunned.
Alternatively, select the accounts to be dunned by entering the following criteria:
a. A single customer or a range of customers
b. A single vendor or a range of vendors
c. Company code
d. Accounting clerk
e. Dunning areas
f. A dunning level or range of dunning levels
g. Dunning block
Choose Continue.
The dunning proposal is displayed with the account overview.
3. Select an entry from the list and edit it. You can:
∙ Block an account for the current dunning run or remove the dunning block
From the account overview, you can prevent an account from being dunned or remove the dunning block by changing the entry in the Dunn.block field. If you set an account dunning block, then you can no longer edit the relevant dunning items. However, this dunning block only applies for the current dunning run. If you want to change the dunning block for the account permanently, you have to do this in the customer master record.
∙ Block an account for dunning or remove the block in the master record.
From the account overview, you can branch directly to the master record in order to make a permanent change to the dunning block for an account. To do this, position the cursor on the relevant account and then choose the Master record function. This takes you directly to the dunning data within the master record where you can change the dunning block. This dunning block change is, however, not valid for the current dunning run. If you want it to apply to this run as well, then you must also make the change in the account overview.
∙ Change the dunning level of an item
From the account overview of the dunning proposal, you can branch to the item overview by choosing Dunning items. This overview then displays the individual documents for the account selected.
Here you can change the dunning level by making an entry in the Lv (dunning level) field.
∙ Block a document for dunning or remove the block
From the item overview, you can also branch to the document. To do so, select the document - either by double clicking, or selecting F2. You can change the dunning block in the document. This dunning block change however, is not valid for the current dunning run. If you want it to apply to this run as well, you must also set the dunning block in the item overview for the dunning proposal.
4. Save your changes.

4.Determining the Accounts and Items to be Dunned (Logic)

Use

This function determines the accounts and business partners to be dunned, and the items that are
overdue.

Features

The system determines the accounts and items to be dunned in two steps. Firstly, the dunning
program checks the accounts and the items.

Processing the Accounts

The dunning program checks whether an account needs to be dunned as follows:
·  It checks the fields Dunn.procedure (dunning procedure) and Last dunned (date of last run) in the customer master record to determine whether the arrears date or the date of the last dunning run lies far enough back in the past.
·  It checks whether the account is blocked for dunning according to the Dunning block field in the customer master record.
Following these checks, the account in question is either released for dunning or rejected. If the account is released for dunning, the dunning program processes all open items that were posted to this account on or before the date entered in the field Documents posted up to.
1. It checks each open item in an account as to whether the open item:
1. Is blocked for dunning
2. Is overdue according to the date of issue, the base date, the payment conditions, and the number of grace days granted
Following these checks, the open item in question is either released for dunning or rejected. If it is released for dunning, the dunning program calculates the following:
2. How many days the open item is overdue
3. Which dunning level the open item has according to the dunning levels specified in the dunning procedure.
From these calculations, open items with specific dunning levels are determined for an account, whereby the dunning level of the account is equal to the highest dunning level of an open item.

Processing the Accounts

Once the dunning program has determined which open items to dun and the dunning level for the
account, it processes each account by making the following checks:
·  Does the customer (or vendor) have a debit balance with regard to overdue items and all open items? If not, the account is not dunned.
·  Is the total amount to be dunned and the percentage of all open items more than the minimum amount and percentage defined in the dunning procedure? These minimum amounts are defined for each dunning procedure, currency, and dunning level, and may be zero (no minimum amount required).
·  Is the dunning level for the account or the overdue items higher than it was for the last dunning run? If not, are there new open items to be dunned (with a previous dunning level of 0)? If not, does the dunning procedure for this level specify that dunning be repeated? If the answer to these three questions is no (that is, the dunning level of both the account and the overdue items has not changed, there are no new open items to be dunned, and dunning is not to be repeated), the account is not dunned.
After the account is released for dunning, the next account is tested in the same way. After these processing steps, the program creates a list of all the accounts and open items that have been proposed for dunning (Dunning proposal list). The program assigns a dunning level to the account according to the highest dunning level of an open item in the account.

Determining Dunning Levels

Open items reach a certain dunning level if the number of days in arrears is equal to or greater than the days in arrears specified for that particular dunning level, but less than the days in arrears specified for the next level. When you print the dunning notices, the dunning level is stored in the item.
You have defined dunning levels for your dunning procedure (see below). An open item that is 14 days in arrears would then be assigned to the first dunning level; an item that is 31 days in arrears to the third level, and an item that is 50 days in arrears to the fourth level.
The highest dunning level determined is stored in the master record of the account when you print the letters. This dunning level determines the dunning text and (if one is required) a special dunning form. You can also specify that dunning should be carried out per dunning level. In this case, the highest dunning level of the account does not determine the dunning text or the dunning form; instead, a separate dunning notice is created for every dunning level.
Dunning levels are raised or reduced either by the dunning program or manually:
·  If you change the dunning level using the line item change or account change functions, you can raise or lower the level as you wish.
·  If you change the dunning level in the dunning proposal, you can reduce it by as many levels as you wish, but can only raise it by one level. In addition, whether or not you can
increase the dunning level depends on the last dunning level: if the dunning program has already raised the dunning level during the dunning run, you cannot enter a higher dunning
level. You normally increase the dunning level manually if you unblock a blocked item in the dunning proposal.
·  The dunning program can only raise the dunning level for line items by one level at a time (from the previous dunning level). This applies even to blocked line items once the block has been removed.
For those customers for whom you have defined bank collection, line items are taken into account according to the following rules:
For items that have a payment method for incoming payments specified in the items, the system checks whether the item is blocked for payment. If it has been blocked, the item is dunned.
If no payment method is specified, the system checks whether a payment method for incoming payments is specified in the master record. If one exists, the system carries out a further check to determine whether the master record is blocked for payments. If it has been blocked, the item is dunned.
If no payment method is defined in the master record, the item is dunned.

Effect of Minimum Amounts and Percentage Rates on Dunning Levels

To prevent relatively small overdue amounts from triggering high dunning levels, you can specify minimum amounts and minimum percentage rates for every dunning level. The next dunning level is then triggered only if the amount to be dunned is equal to or exceeds the minimum amount and the minimum percentage rate (with reference to all open items). If this is not the case, the items are assigned to the next lowest dunning level and the system carries out the check again.
During a dunning run, a "dunnable" amount of 100 USD was defined for dunning level one; the total of all open items is 1000 USD. The minimum amount for the first dunning level is 10 DEM, and the minimum percentage rate is 10 percent. In this case, the minimum amount is reached and dunning level one is triggered.
In the next dunning run, the open items are assigned to dunning level two, due to the increased number of days in arrears. The dunnable amount for dunning level two is 100 DEM. The total of all open items has changed, and is now 1100 DEM. The minimum amount for the first dunning level is 80 DEM, and the minimum percentage rate is 10 percent The minimum percentage rate is therefore not reached. The amount to be dunned is assigned to the next lowest dunning level (level one).
For checking purposes, the system determines the amount to be dunned in local currency or in the foreign currency for those accounts that were posted to in a foreign currency only. You therefore enter your minimum amounts in local and/or foreign currency. If the dunning program finds no entry in the selected foreign currency, it determines the minimum amounts in local currency.