How to Create Dunning procedure configuration - FBMP

How to Create Dunning procedure configuration – FBMP.

Dunning Procedure: Dunning is the correspondence letter which is sending to the customer asking for the over due amount which is not cleared on time. Here Discount rates and over due items will be determined in Payment term.

F150 – Automation of Dunning Run – PDF

What is the link between Payment term and Dunning Procedure

Payment Terms determine the net due date of an open customer item (invoice).
The Dunning Program checks this due date to decide whether an item is overdue.
Dunning Procedure does not directly read payment terms, but it relies on the due date derived from the payment term.

SPRO Path – SAP Reference IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Business Transactions -> Dunning -> Dunning Procedure – Define Dunning Procedures – Click on Execute.

Click on New Procedure.

Give Dunning Procedure, Name.

General Data – Dunning Interval in days (Days between 2 intervals), Dunning Levels (Maximum Dunning letters can be issued are 9), Interest indicator (Charging some interest on customer over dues) Grace days, Standard Transaction Dunning etc.

Click on Dunning Levels

Days in arrears – we maintained 3 grace days in above screen. 1st Dunning letter will be issued after 3 days of due date and next letters will be continued by 20 days interval gap.

Always Dun? – Give tick mark for all intervals

Click on Charges.

Popup will come, Give currency and click on continue button.

Now maintain the charges for each dunning level which will be charged from customer.

Click on Minimum amounts.

Again popup will come, give currency and click on continue button.

Here minimum amount, maintain for all the dunning levels.

Example

Customer invoice 1000000 and customer paid 999200. Here 800 is the negligible amount, to ignore sending the dunning letter for these kind of dues.

Now click on Dunning texts.

Popup will come, Give company code, Customer and click on continue button.

Purpose, Linking the Company code with Dunning procedure.

Click on New entries.

Give company code and click on continue.

Give check mark for Dunning by dunning area

Click on Save button two times

Customizing request popup will come, select your request and click on continue.

Again click on Dunning texts.

Popup will come, give company code, tick for customer and click on continue button.

Dunning text refers to the specific wording used in a dunning letter to request payment from a customer, with varying levels of text corresponding to the increasing seriousness of the each dunning level.