Difference between Dunning (F150) and correspondence F.27

[mariks]

Hi All,

I would like to know the difference between the process : Dunning and correspondence or both are same ? in respect of Customer perspective.

With Example explanation much appreciated.

Thanks,

Mariks.

[Former Member · Accepted solution]

Hi Mariks,

You know when you see it. However, just a few key points:

Dunning is a very formal procedure. Once you run it, not only correspondence gets generated, but also the impacted master records and open items (invoices etc.) get updated to see when and how the customer or vendor was reminded for payment. You can refer to this record when analyzing open items in the future, and the dunning program uses it itself when determining a dunning level (so, it automatically chooses whether you want to politely remind, give warnings of legal actions or start them. It also does not let you send these letters more often then you define in your dunning procedure. It is tailored to its only purpose - reminding business partners of overdue payments.

Correspondence in F.27 (account statements) is informal. Customer or vendor master does not get updated when the correspondence (e.g., periodic account statement) are issued. You can run it every day, e.g. whenever the customer requests it. On the other hand, if he asks you today then (in standard SAP) you do not know if someone had sent him something similar yesterday. This correspondence remains static - you cannot make it dependent on what you sent in the past. So, it is suited to providing regular or on-request information about the account movements and balances, but you may find it harder to find a record on your side that you reminded the customer of payments in case he is late.

Both types of correspondence may exist in parallel - F.27 to provide neutral information regularly or on request, F150 to push for payments if overdue. There is also a third similar type - balance confirmation (F.17 for customers, F.18 for vendors), which is close to the account statements (F.27) but gives more choices of what to show on the form (blindly request for their balance, provide own balance and items, remind of a previous request).

Hope it answered your question. Good luck!

[mariks · Accepted solution]

Thank you Jan....

Which one we can suggest (F150 or F.27) to client as a consultant.

Thanks,

Mariks.

[former_member851315 · Accepted solution]

Hi Mariks,

SAP standard is dunning but, F.27 is also good for me because business users can define for whom to run and to send  or not and it does not affect any items in the system.

for me I like f.27

Thanks

Srinath

[eduardo_hinojosa · Accepted solution]

Hi

F.27 could be more informative for your client's customers. See the documentation in report RFKORD10 and see the information you could add to the account statement. In the other hand, dunning could be an issue for some cultures.

Regards

Eduardo

[Former Member · Accepted solution]

Hi Mariks,

Just to add a little to what Srinath and Eduardo wrote:

Dunning is more "intimidating" - you do it when someone owes you money which he should not. In that case, you probably want to keep record of what you wrote him and when, because in many countries, you cannot collect certain legal fees if you not prove that you reminded the customer for payment. SAP dunning does just this - it follows the predefined deadlines and records per customer and item, how serious the payment delay is.

Account statements F.27 are just informative. This is something you would send to every customer every period (monthly, quarterly...) just to let them know their balance, and perhaps add some marketing slogans as standard texts. There is no easy way to tell one customer that you are angry at him because he is late with payment, while inviting another one to buy more. Yes, you can do it (different correspondence types -> forms, texts dependent on some master data fields etc.), but you then need to keep the record (what to tell whom) manually. And why spendtime on it if SAP can do it for you in dunning?

I know that creating forms in SAP is a pain. It takes plenty of time and a lot of recycling. So, there is a point of developing fewer, if possible. I have seen companies with just dunning and no F.27 (customers paid / vendor got paid by invoice, and if someone asked for details, then they sent him a download from FBL1N / FBL5N). The opposite (only F.27 and no F150) would in my view only work if you have very reliable customers who are almost never late, and if you can track the few exceptions manually. So, the final decision should be based on volume: how many vendors / customers expect to get an an account statement in a month, and how many are likely to be late with their payment? Then you can make a business case of it.

Good luck!