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Dunning procedure in Vendor master

Why do we create Dunning procedure in Vendor master.. cud u pls advise..?

Txk

Umesh

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 18, 2009 at 01:52 AM

    Hi,

    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.

    _ Overview_

    Vendors with debit balances are subject to dunning. Debit balances are the result of credit memos posted to the vendor account due to circumstances such as returned goods.

    Once vendor credit memos exceed vendor invoices, the payment due will be shifted back to the vendor. Therefore, dunning will be run to check for delinquent balances.

    Thanks

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 17, 2009 at 07:28 AM

    Hello,

    Dunning proceedure is mandatory in vendor master. Why because, if you have not maintained in vendor master then system should not know while creating dunning notice for specific vendor. This dunning details are automate update in vendor master when you have complete all dunning procedures.

    For creating dunning procedure: TC: FBMP

    To run the dunning: TC: F150

    Thanks

    Para

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 17, 2009 at 07:36 AM

    3.3.3.4.1.2 Dunning Procedure

    3.3.3.4.1.2.1 Defining Dunning Procedures

    Use

    You enter the settings that control the dunning program by:

    1. Specifying the company codes to include in dunning.

    2. Setting up the dunning procedure you want to use (dunning interval, grace periods for the due date determination and number of dunning levels)

    3. Setting the dunning charges.

    4. Specifying the net payment due date at which a particular dunning level is reached.

    5. Specifying the dunning notice you want to send to your customers.

    The following dunning procedures have been defined for dunning customers:

    0001 Four-level dunning notice, every two weeks

    Z030 Interest calculation after 30 days

    The dunning procedure Z030 specifies that customers who do not pay within 30 days are automatically in arrears. The customers receive a dunning notice without interest amounts. From then on, interest is calculated for the open items using the interest calculation program (see also the section on the interest calculation program).

    Procedure

    1. Access the activity using one of the following navigation option:

    Transaction code SPRO

    IMG menu Financial Accounting (NEW) ® Accounts Receivable/

    Accounts Payable ® Business Transactions ® Dunning ® Dunning Procedure ® Define Dunning Procedures

    2. Choose New procedure.

    3. Make the following entries:

    Field name Entry

    Dunn.Procedure 0001

    Name Four-level dunning notice, every two weeks

    Dunning Interval in Days 014

    No.of dunning levels 4

    Total due items from dunning level

    3

    Min.days in arrears (acct)

    6

    Line item grace periods

    2

    Public hol.cal.ID

    08

    Interest indicator

    01

    Standard transaction dunning X

    Ref.Dunning Procedure for Texts 0001

    4. Choose Dunning Levels.

    5. Maintain the following entries:

    Field name Dunning level 1 Dunning level 2 Dunning level 3 Dunning level 4

    Days in arrears 2 16 30 44

    Calculate interest X X

    Always dun X

    Print all items X X

    Payment deadline 10 7

    6. Choose Charges, enter currency EUR and make the following entries:

    Field name Dunning level 1 Dunning level 2 Dunning level 3 Dunning level 4

    Dunn.charge 5 5 10 10

    7. Choose Minimum Amounts, enter currency EUR and make the following entries:

    Field name Dunning level 1 Dunning level 2 Dunning level 3 Dunning level 4

    Minimum amount 1 2 5 10

    Min.amt for interest 1 5 10 10

    8. Choose Dunning Texts, enter company code BP01 and choose account type customer. Make the following entries:

    Field Dunning level 1 Dunning level 2 Dunning level 3 Dunning level 4

    Form Z_F150_DUNN_01 Z_F150_DUNN_01 Z_F150_DUNN_02 Z_F150_DUNN_02

    9. Choose Save.

    10. Choose Back and maintain the next dunning procedure.

    11. Choose New procedure.

    12. Make the following entries:

    Field name Entry

    Dunn.Procedure Z030

    Name Interest Calculation after 30 days

    Dunning Interval in Days 014

    No.of dunning levels 2

    Public hol.cal.ID

    08

    Interest indicator

    01

    Standard transaction dunning X

    Ref.Dunning Procedure for Texts Z030

    13. Choose Dunning Levels.

    14. Maintain the following entries:

    Field name Dunning level 1 Dunning level 2

    Days in arrears 14

    Calculate interest X X

    Print all items X X

    Payment deadline 7

    15. Choose Dunning Texts, enter company code BP01 and choose account type customer.

    16. Make the following entries:

    Field name Dunning level 1 Dunning level 2

    Form Z_F150_DUNN_04 Z_F150_DUNN_04

    17. Choose Save.

    3.3.3.4.1.2.2 Defining Dunning Procedures

    Use

    In this activity you enter the settings that control the dunning program.

    Procedure

    1. Access the activity using one of the following navigation option:

    Transaction code SPRO

    IMG menu Financial Accounting (NEW) ® Accounts Receivable/

    Accounts Payable ® Business Transactions ® Dunning ® Dunning Procedure ® Define Dunning Procedures

    2. Choose the menu Environment ® Company Code Data and make the following entries:

    Company Code Dunning by Area Separate Dunn. Notice Ref. Comp. Code Sort. Variant Acct Sort. Variant Items Dunn. Comp. code

    BP01 BP01 K1 P1 BP01

    3.3.3.4.1.2.3 Defining Interest Rates

    Use

    In the dunning program, an interest rate of 7.68% has been defined for interest indicator 01 and the currency EUR. This interest rate is the same as the rate set for the interest calculation program and is calculated from the discount rate (2.68%) and a surcharge of 5%.

    Procedure

    1. Access the activity using one of the following navigation option:

    Transaction code SPRO

    IMG menu Financial Accounting (NEW) ® Accounts Receivable/

    Accounts Payable ® Business Transactions ® Dunning ® Dunning Procedure ® Define Interest Rates

    2. Make the following entries:

    Interest Indicator Currency Valid from Debit Interest Credit Interest

    01 01.01.1991 7.680 7.680

    01 PHP 01.01.1991 7.680 7.680

    3.3.3.4.2 Printout

    3.3.3.4.2.1 Defining Sender Details for Dunning Forms

    Use

    In this activity, you define which standard texts are used for the header, the footer, and the sender address in the letter window for each company code.

    Procedure

    1. Access the activity using one of the following navigation option:

    Transaction code SPRO

    IMG menu Financial Accounting (NEW) ® Accounts Receivable/

    Accounts Payable ® Business Transactions ® Dunning ® Printout ® Define Sender Details for Dunning Forms

    2. Make the following entries:

    Dunning Area Text ID Header Text Footer Text Signature Text Sender

    ADRS ADRS_HEADER ADRS_FOOTER ADRS_SIGNATURE ADRS_SENDER

    3.3.3.4.2.2 Allowing Dunning with SAP script Forms

    Use

    You have the possibility to use either SAP script forms or Smart Forms in the dunning procedure. In this transaction you have to specify which forms are used for dunning in this system.

    This table is cross-client. Any changes you make in this table will take effect in all clients of your system.

    Prerequisites

    You have processed the previous mentioned steps.

    Procedure

    1. Access the activity using one of the following navigation options:

    Transaction code BF31

    IMG menu Financial Accounting (NEW)  Financial Accounting Global Settings (New)  Tools  Customer Enhancements  Business Transaction Events  Settings  P/S Function Modules  u2026 of an SAP appl.

    2. On the Change View Publish & Subscribe BTE: SAP Enhancement: Overview screen, check - and if necessary change - the following entries:

    Field name Description User action and values Notes

    Event Event (Business Transaction Event) 00001720 this entry already exists

    Country Ctr (Country ISO Code) Blank

    Appl. Appl. (Application Indicator for BTE) FI-FI

    Funct Function Module FI_PRINT_DUNNING_NOTICE this function module needs to be entered if SAPSCRIPT forms should be used

    3. Choose Save.

    If you want to use Smart Forms then you have to enter for above mentioned event 00001720 function module FI_PRINT_DUNNING_NOTICE_SMARTF. Please be aware that in installation guide and configuration guide the set up for customizing is only made for dunning with SAP script forms and not for dunning with Smart Forms.

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 17, 2009 at 07:38 AM

    We create dunning for customer to send them reminders for payment....But why do we use dunning for vendors?

    Txk,

    Umesh

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    • Former Member

      Hello,

      If you dun customers who are also vendors and want to clear the items, the dunning program lists both the overdue customer items and the overdue vendor items in the dunning proposal, and determines a joint balance. When you dun a customer who is also a vendor, only the master record information of the customer is relevant.The items can only be cleared if the same dunning procedure has been defined in the standard dunning area for both customer and vendor.

      Hope this helps. Please close the thread if it answers.

      Rgds

      Manish

  • author's profile photo Former Member
    Former Member
    Posted on Feb 17, 2009 at 05:39 PM

    in the corporate business some time customer is a vendor or vendor is a customer some times goods purchase some mistake in that goods that time goods return that time vendor amount is shows debit balancess when vendor will purchase the after finished goods you want to payment of that time also you will run the dunning programe and dunning is only reminder

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 18, 2009 at 06:33 AM

    ok

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    • Former Member

      HI Umesh,

      In simple terms

      1) When vendor was paid twice for a single invoice. Normally we will deduct that amount from vendor future invoice payments. If we do not have future payments to this vendor we will post one credit note in sap to this vendor and this would be in debit balance. If vendor not paid this amount we will include this in our dunning program.

      Whenever vendor needs to pay we will send the dunning notices to him. Thanks.

      Regards,

      Inthiyaz

  • author's profile photo Former Member
    Former Member
    Posted on Nov 17, 2014 at 02:25 PM

    Hi Umesh

    suppose we have done advance payment to the vendor for the goods. Still he didn't send the goods or still he didn't respond, then we will send a remainder notice to the vendor for the goods

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    • Former Member

      Dear Friends,


      Right answer what i guess all of us are searching for is answered by Korlepara Keerthi.


      "Vendors with debit balances are subject to dunning. Debit balances are the result of credit memos posted to the vendor account due to circumstances such as returned goods."

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