WHAT

IS DUNNING
IN SAP?
Reminding a business partner to pay
(payment reminder) is called dunning in SAP. We
can configure the dunning program to dun
customers and vendors - if there is a debit
balance resulting from a credit memo.

SAP can determine which customers

should receive the letters and for which overdue
items. Different letters can be printed in SAP
depending on the overdue payment date, with a
simple reminder. With the help of dunning level
on the customer master, we can know which
letter has been issued to the customer. It also
includes the last dunned date, last used
dunning level and others.

VIVIAN
TONDEV
The dunning program
selects the overdue open items,
determines the dunning level
for the items and account and
creates a dunning notice.
Further, we can dun all business partners
with overdue items automatically or make
selective dunning. We can also generate a single
notice combining all the overdue items of a single
business partner across company codes.

VIVIAN
TONDEV
DUNNING
PROCEDURE
IN SAP FICO
The dunning procedure becomes
important for having the payment on time.
It starts from setting parameters -> to making
proposals -> checking any issues or open
items -> fixing dunning time and making
modifications if any.

VIVIAN
TONDEV
Role ZSBM => Accounts
Receivable => Periodic
Processing => F150 - Dunning
Enter the Transaction F150 in the SAP
Command Field

Enter the Dunning run date

Enter the Dunning run Identification

VIVIAN
TONDEV
PARAMETERS
NEED TO BE SET
Setting up the parameters is the first stage.
The other parameters include the following:-

Enter the Dunning Date which need capturing

in the dunning notice.
Enter the Date upto which the documents for
dunning are to be considered.
Enter the Company Code for dunning.
Enter customers and vendors to be dunned.

Save the Dunning Parameters

Schedule the Dunning run by pressing the
schedule button
VIVIAN
TONDEV
CREATING
PROPOSAL
The second stage is creating the dunning
proposal.

Here the dunning program determines which

accounts and items to dun. The system checks
the Dun procedure and last Dunned fields in the
customer master. It helps to determine whether
the arrear date (the date of the last dunning
run ) falls in the past to consider it for the current
run.

Then, it checks whether the account is blocked

for dunning.

If its blocked, we can search the entry in the

Dunning Block field in customer master.
If not blocked, then we consider that the
system has released these accounts for dunning
in the current run.

VIVIAN
TONDEV
OPEN ITEMS
CHECK
Now, the program proceeds to process the
open items of accounts that the system has
released. However, it posts it on or before the
date entered in the field “Documents posted
UP TO.

VIVIAN
TONDEV
Determining appropriate
level of Dunning in SAP
Then for all the open items that the system
has released for dunning in the previous step, the
program determines the appropriate dunning
level. It is based on the number of days an item
has been overdue.

It sets the highest dunning level of an open

item of the account. Even if there are different
dunning levels associated with the different open
items. This highest dunning level (which
determines the appropriate dunning text that we
need to use and relevant dunning form).

The program checks each of these eligible

accounts to ascertain whether the customer or
vendor has a debit balance, considering the
system selected all the open overdue items in
that account.

VIVIAN
TONDEV
In case the system selects
all open overdue items in that
account
The system has picked the accounts
for dunning

The system checks the total amount to be

dunned percentage of all open items more than
the minimum amount or percentage defined in
the dunning procedure that is being used.

It ascertains whether the dunning level

selected for the account or an item is higher
than the last dunning run.

VIVIAN
TONDEV
In case the system Doesn’t
select all open overdue items in
that account
If the system didn’t pick that account
for dunning.

The system proceeds to determine whether

there are any new open items to dun.

It then confirms whether the dunning

procedure in use allows for repeating the
dunning at the same dunning level as that of
the previous run.

VIVIAN
TONDEV
DUNNING
PROPOSAL LIST
The dunning program creates the dunning
proposal list. It contains the accounts with the
open items that the system has selected for
the current dunning.

MAKING CHANGES
IN THE LIST
We may edit the dunning proposal list to
manually raise or lower the dunning level of an
item or account. We can also block or unblock an
item or account or document from being dunned.
We can look at the log to confirm the changes
we have made to the dunning proposal.

If further changes to be done, we can still

edit the proposal. We may also display the sample
printout of the dunning notice on the screen.

VIVIAN
TONDEV
PRINT THE
DUNNING FORM
Dunning notices are ready for the print. We
can use the same dunning form, irrespective of
dunning levels or we can use different forms for
different dunning levels with varying dunning text.
We may also use a legal dunning form normally
used as final notice.

Once we activate the print run, the program

prints the dunning notices in addition to updating
the important details like dunning level and last
dunned date.

Dunning is an important part of Accounts

Receivable. It prompts vendors to make on-time
payments of invoices.

VIVIAN
TONDEV
SPECIAL
FUNCTIONS
IN DUNNING
Dunning Credit Memos
Grouping Open Items Under Grouping Keys
Cross-Company Code Dunning
Legal Dunning Proceedings
Local Dunning
Dunning One-Time Accounts
Customer and Vendor Clearing
Alternative Dunning Recipient

VIVIAN
TONDEV