SAP S4 HANA Dunning Stages

[former_member599818]

Hello Expert,

Please suggest me, How to Schedule Dunning Letter in Mass in SAP S4 HAHA and once all dunning level ends, but no response from customer then again, we need to start from Dunning Level 1 for that can we need to delete dunning date and level in BP or in FBL5N Mass changes.

Regards

Nilesh

[sanilbhandari · Accepted solution]

Hello nileshabhang

The below blog should help you set up dunning.

https://blogs.sap.com/2013/05/03/sap-fi-dunning-procedure-for-customer-outstanding-invoices/

If the customer is not responding to dunning notice, why would you send the same letter to him again. You would send a reminder and that could be level 2 of dunning. After a certain number of times of notices sent, you will send a legal notice and that would be represented in SAP as a legal level in Dunning Process. This can achieved through multilevel dunning. Having a multi level dunning will ensure that you have the required transnational evidence in your SAP System and it can be used for support during legal proceedings. If you delete the dunning history (technically possible), what would you do in case of legal processes.

Hope this helps

Thanks & Regards

Sanil Bhandari

[former_member599818]

Thanks NSK!

Got all clarity...

Regards

Nilesh

[narasimhulu_konnipati]

Good to hear. You can now close this thread.

Thanks,

NSK

[narasimhulu_konnipati]

Hello Nilesh,

If you post new invoices on top of the existing invoices and they breach the due date, then reminder 1 will be sent for them.

Example: Customer XYZ and Agreed Payment Terms are 30 days.

Invoice # 1 : Posted on 01.06.2020

Invoice # 2 : Posted on 10.06.2020

Invoice # 3 : Posted on 12.06.2020

You are following a Dunning interval of 7 days from one to other.

The Customer has not paid for the above invoices till 15.07.2020. In case if you run Dunning as on 15.07.2020, then all the above invoices will be issued with Remainder 1.

You posted a new Invoice # 4 as on 18.06.2020 and the Customer has not paid it so far.

When you run next Dunning run, example as on 22. 07.2020, for the Invoice # 1, 2 and 3, system will issue Reminder letter 2 and for Invoice # 4, system will issue Reminder letter 1.

The same rule applies for the old as well as new invoices until you get the payment / till the last dunning run.

It applies for Partially paid invoices as well.

Let us know for any further queries.

Thanks.

NSK

[narasimhulu_konnipati]

Hi Nilesh,

You can have upto 9 Dunning levels configured in each Dunning Procedure. Which means, you can send 9 reminders for a Customer for an invoice. It's upto you how many levels you want to configure for your Client.

Please check the Blog shared by sanil.bhandari which explains you complete details.

For any Dunning procedure, the last run becomes the legal Dunning with a legal action on Customer.

Thanks,

NSK

[former_member599818]

Dear NSK,

Thanks!

What happened in case partly payment received and more billing added during this period then how we share normal payment reminder to customer I. e. First reminder instead of legal notice.

Regards

Nilesh

[former_member599818]

Thanks Sanilji !
Appreciated with your quick support.

If we need send a reminder and that could be level 2 of dunning - For that we need to delete dunning level 2 onward in BP, if yes then can we update the same in FBL5N or in MASS.

Can we assign Dunning Procedure in Mass to BP.

Please share more about legal process from SAP.

[sanilbhandari]

Hello nileshabhang

You ca set up dunning levels and the system will automatically define if it is the second level of dunning or not. For eg, in your dunning procedure, you have defined two levels of dunning. The customer has been dunned once and level 1 dunning notice has been sent. Than when you run dunning again, system will check the dunning level of the customer in tables and automatically send the second level of dunning.

Regarding the form output, to each level, you need to assign a form and you can define in the driver program, what data should be shown in the form and how it should be shown. Your ABAP Colleague should be able to help.

You can assign the dunning procedure in mass. Check the transaction MASS

The legal process is nothing, but you designate a level as the legal level and assign the form with the right output. Once the legal level of dunning has been reached, system will not dun the customer again. You need to check with your finance and legal colleagues on the content of the output and how the letter should be sent to the customer. For eg, if you are in India, you might want to send a print out put by a registered post. However, in other countries, the requirement can be different. This needs to be checked with your business colleagues. You can run in a single time the dunning run for multiple customers in one go. If you choose to send the output by email, you can also configure the same in T Code SOST the outputs to be send to external email id of customers by reading the same from customer master. You can also configure in your dunning run, if you want to charge interest on overdue balances and define the interest rates and include the items in your multiple dunning levels.

Hope this helps

Thanks & Regards,

Sanil Bhandari