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Former Member

Dunning Legal

Hi,

can anyone please help me understand the Legal Dunning.

Lets say one Dunning procedure has 4 dunning levels and for the customers who reach the last level 4, they have to send a Legal notice. Do they just change the text for the Level 4 ?

What is the standard way of doing the legal dunning.

I read some where they use separate Dunning procedure for Legal notices, is that true and possible?

Can anyone please let me know about this.

Thanks

Krishna

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3 Answers

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    Former Member
    Oct 22, 2007 at 01:12 PM

    The legal dunning procedure is initiated with an application for the issue of a court order for payment (a simplified statement of claim). If the application is lodged correctly, the court issues an order for payment, without examining the validity of the claim. In this court order the debtor is required to settle the claim, plus interest and costs, within a period of two weeks, or to contest the claim within the same period.

    If the creditor is resident outside Germany and the debtor is in Germany, the Schöneberg local court in Berlin has sole jurisdiction.

    If the debtor contests the claim, the court issuing the order (the dunning court) passes the legal dispute on to the competent court for the case, in as much as one of the parties applies for the dispute to be settled.

    If the debtor does not contest the claim, the court issues a writ of execution upon application, which also has to be officially delivered to the debtor. The debtor can also contest the writ of execution within two weeks.

    If the debtor does not contest the writ of execution, the debtor then has an executory title and can collect the accounts receivable by way of debt enforcement.

    sridhar

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    Former Member
    Oct 22, 2007 at 03:17 PM

    Krishna,

    One of the reasons for moving an account to legal is to move it to a doubful debt recon account via F-30 transfer with clearing.

    If you configure and use Special GL "E" you normally move all of the open items as a single item to the Special GL "E".

    You need to have a different recon account set up for special GL "E".

    Also once you move it to legal you would then normally pass on any costs to the customer as well.

    By removing the debt from the standard recon account to a special recon account, when you run your aged debt report, you report on what you can collect, the legal part is seen as debt that you wont get.

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    Former Member
    Oct 23, 2007 at 01:36 AM

    Yes you are right.

    There should be separate form for legal dunning notice. You can moniter the movement in the account after the customer account is brought under Legal dunning notice. Mention the date in the Customer Master> company code Data> Correspondence Tab.

    You can give Dunning Forms per Level. Go to the dunning Text Tab in the dunning procedure assign the form. NOt sure of the form No.

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