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    3 views28 pages

    Dunning Procedure

    Uploaded by

    hemantkala8567

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 28

    Configuration Document

    Dunning Procedure
    By Sanjana Undare

    Gmail Id : [email protected]

    Linkedin URL : https://www.linkedin.com/in/sanjana-undare-701484280

    1
    Dunning Procedure

    CONTENTS PAGE NO

    Define Dunning Area 6

    Define Dunning Procedure 9

    Assign Dunning Procedure to Customer Master 16

    Sales Invoice Posting 20

    Run Dunning 24

    2
    Introduction
    If your business partners may fall behind on payments. You can send
    them a payment reminder or a dunning notice to remind them of their
    outstanding debts.

    The SAP system allows you to dun business partners automatically.


    The system duns the open items from business partner accounts in which
    the overdue items create a debit balance. The dunning program selects the
    overdue open items, determines the dunning level of the account in question,
    and creates a dunning notice. It then saves the dunning date determined for
    the items and account affected.

    You can use the dunning program to dun both customers and vendors. It
    may be necessary to dun a vendor if he or she has a debit balance as a
    result of a credit memo. If a customer is also a vendor, you can offset the
    account balances against one another.

    3
    ▪ Dunning Area: Dunning area are used to classify customer
    or vendors into different categories based on specific criteria,
    such as geography or business unit. This allows for more
    customized dunning processes.

    ▪ Dunning Procedure: Is a Process used to remind


    customers about their outstanding invoices and to
    encourage them to make payments. It involves a series of
    steps and actions to manage overdue accounts. Here’s
    detailed explanation of the dunning procedure in SAP FICO.

    ▪ Dunning Keys: Dunning keys are used to control the


    dunning process. They determine the intervals between
    dunning runs, the dunning program to be executed and other
    parameters. Dunning keys are assigned to customer or
    vendor master records.

    ▪ Dunning Programs: SAP provides dunning programs that


    you can execute to initiate the dunning process. You can
    create custom dunning programs if needed.

    ▪ Dunning Notices: Dunning notices are the reminders send


    to customers or vendors with overdue invoices. These
    notices can be generated in various formats, including
    letters, emails, or faxes.

    4
    ▪ Dunning Run: The Dunning Run is the actual execution of
    the dunning program. It identifies overdue items, selects the
    appropriate dunning level for each item, and creates dunning
    notices for customers or vendors.

    ▪ Dunning Proposal: Before executing a dunning run SAP


    FICO allows you to generate a dunning program. This is
    simulation of the dunning run, which shows the items that
    will be dunned at each level.

    ▪ Dunning History: SAP FICO maintains a dunning history


    that tracks all dunning activities for each customer or vendor,
    helping you keep a record of communication and payment
    reminders.

    5
    Configuration Settings:-
    1. Define Dunning Area:

    Path: SPRO > SAP Ref IMG > Financial Accounting > Accounts Receivable &
    Payable > Business Transactions > Dunning-Basic Settings for Dunning >
    Define Dunning Area

    Using TCODE OR OB61

    6
    execute > click on dunning area

    7
    select new entries

    give company code and dunning area and text

    8
    2. Define Dunning Procedure:

    Path:- Financial accounting > Accounts receivable & payables


    > Business transactions > Dunning > Dunning procedures >
    Define dunning procedure. OR
    Using TCODE FBMP

    9
    Step 1 :- Select New Procedure

    10
    give dunning procedure > name > dunning interval in days >
    dunning level number > line item grace period > select check box
    standard transaction dunning
    Step 2:-

    click on dunning level-enter

    11
    enter dunning in arears > select printing parameters check box >
    select always dunning in legal dunning procedure check box
    Step 3:-

    click on charges

    enter currency > continue

    12
    enter dunning level and dunning amount
    Step 4:-

    13
    click on minimum amount > currency > continue

    enter dunning minimum amount > continue

    14
    Step 5:- click on dunning text

    enter company code > account type (customer) > continue

    search dunning form > back > save

    15
    3. Assign Dunning Procedure to Customer Master

    Path :-Use TCODE=BP

    16
    Click on open BP > enter business partner number > Continue

    Click on Customize local layout for display mode to change mode

    17
    Select Role for customer

    Click on Company code

    select customer correspondence option

    18
    enter dunning procedure

    click on customer payment transaction option


    then enter terms of payment > save.

    19
    End User Activity

    4.Sales Invoice Posting

    Path:- Using TCODE=FB70 OR F-22

    enter document date, posting date, company code and currency

    enter customer number

    20
    take amount > text > sales account > enter

    21
    give amount > text > enter

    Then Simulate

    22
    Now show the sales invoice > post

    Then post the sales invoice.

    23
    5.Run Dunning :-

    Path:- Accounting > Financial accounting > Accounts receivable >


    Periodic processing > Dunning. OR
    Used TCODE F150

    24
    give dunning date and identification.

    select parameter

    25
    select additional log

    select status

    26
    click on schedule > enter output device > click on start immediately check
    box > click on dispatch.

    27
    Keep on pressing enter button unless status shown as above.

    28

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