SAP FI Dunning Procedure for Customer Outstanding Invoices
I. INTRODUCTION
Purpose:
When the customer misses the payment for the outstanding invoice within specified payment due date. The dunning letter is generated via sap program and send at customer address for reminding the customer outstanding payment
Requirement:
The dunning system enables to trace liable customers who have not paid their open invoices within a given time span. It enables you to handle the process from, for example, sending a reminder to customers of their outstanding payments through to referring such customers to collections agencies.
The dunning system covers the following documents:
1. Open A/R invoices, including invoices that are partially credited or partially paid
2. Invoices that include installments
3. A/R credit memos
4. Incoming payments that are not based on invoices
II. CONFIGURATION:
1. Create Dunning Keys
We define dunning keys in this step. Dunning keys limits the dunning level of an item.
Path: IMG > Financial Accounting (New) > Account Receivable and Account Payable > Business Transactions > Dunning > Basic Setting for Dunning > Define Dunning Keys
Tcode: N/A
2. Define Block reason for Dunning Notices
In this step, we define the reasons for a dunning block under a key. The key can be entered in an item or in the account of a Customer master. Blocked items or accounts are not considered for the dunning run
Path: IMG > Financial Accounting (New) > Account Receivable and Account Payable > Business Transactions > Dunning > Basic Setting for Dunning > Define Dunning Block Reasons
Tcode: N/A
3. Define Dunning Procedures
We can create Dunning text, Dunning level, Dunning Charges and Company code assignment in the dunning procedure
Path: IMG > Financial Accounting (New) > Account Receivable and Account Payable > Business Transactions > Dunning > Dunning Procedure > Define Dunning Procedure
Tcode: FBMP
4. Create Dunning Interval in days to Dunning Procedures
We determine at which intervals the allocated accounts are to be dunned for every dunning procedure. During every dunning run, the system then checks whether the run date is at least this number of days (14 days) since the date of the last dunning run.
Path: IMG > Financial Accounting (New) > Account Receivable and Account Payable > Business Transactions > Dunning > Dunning Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure and click “Choose” Button
5. Define Dunning Levels to Dunning Procedures
In this step, we determine number of dunning level set up in dunning procedure.
Path: IMG > Financial Accounting (New) > Account Receivable and Account Payable > Business Transactions > Dunning > Dunning Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure and click “Choose” Button
6. Define Dunning Charges to Dunning Procedures
In this step we add the dunning charge as per the dunning level. This is like an administration charge to dun the customer. Currency Euro is assigned during adding the dunning charge
Path: IMG > Financial Accounting (New) > Account Receivable and Account Payable > Business Transactions > Dunning > Dunning Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure, click “Choose” Button, and choose “Charges” button
7. Define Minimum Amounts to Dunning Procedures
Minimum Amount are customized to charge the administration charge to customer with reference to dunning level
Path: IMG > Financial Accounting (New) > Account Receivable and Account Payable > Business Transactions > Dunning > Dunning Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure, click “Choose” Button, and choose “Minimum amounts” button
8. Assign Dunning Texts and forms to Dunning Procedures
For inserting dunning forms, click Dunning Texts and assign the required forms for the dunning text with reference to dunning Level. In case the customer has different language and the form contains different language, then please follow the document attached to translate the source language to target language.
Path: IMG > Financial Accounting (New) > Account Receivable and Account Payable > Business Transactions > Dunning > Dunning Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure, click “Choose” Button, and choose “Dunning Texts” button
9. Define Dunning level to Dunning Procedures
Click the dunning levels and input days in Arrears for each dunning levels.
Select Always Dun in legal dunning proc for not missing any dunning notices.
Path: IMG > Financial Accounting (New) > Account Receivable and Account Payable > Business Transactions > Dunning > Dunning Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure, click “Choose” Button, and choose “Dunning Levels” button
10. Assign Special indicator to Dunning Procedures
In this step, we have assigned Special Indicator Reserve for Bad Debt to dunning Procedure.
Path: IMG > Financial Accounting (New) > Account Receivable and Account Payable > Business Transactions > Dunning > Dunning Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure, click “Choose” Button, and choose “Sp. GL indicator” button
11. Assign Company Code to Dunning Procedures
We have assigned company code with reference to Dunning Level and not by Dunning area
Path: N/A
Tcode: OBVU
12. Assign Sort Fields to Dunning Procedures
In this step, we assign Sort field K1 and Sort field P1 to Company code.
K1 will control the header content and P1 will control line item while printing the contents
Path: N/A
Tcode: OBVU
III. PREPARATION OF CUSTOMER MASTER DATA FOR DUNNING PROCEDURES:
1. In this step, we insert Dunning procedures in the customer master (Correspondence tab).
2. We have to maintain the Language field in the customer master data (Address tab) to print the Dunning Notice as per there language, Dunning Text should also be maintained in reference to dunning level. So that the content of dunning notice will be different to dunning level.
3. For dunning run, this transaction should be performed by F150. This is a month end duty. Please insert Dunning date, Document posted up to date, Company code, Customer Number and save
a. In case we will specify the checks that are to be maintained by user before starting dunning the customer
– Dunning procedure should be maintained in customer master
– Verify in Customer master regarding Dunning block (Customer can’t be dunned if there is dunning block in customer master as well as line item)
– Verify in transaction FBL5N the customer Invoice should be overdue and Amount should be in debit balance and not in credit
– User should make sure the parameters are inserted correctly for Dunning date, Customer Number, Company code and Document posted till date
– Correct Printer should be inserted while printing the dunning notice
b. Dunning test for Credit Memo and Down payment
– Credit Memo
In the dunning run, we can offset existing credit notes with outstanding invoices. This affects the determination of the due date for payment and the dunning level. These are different for customer and vendor credit memos.
The dunning program assumes that credit memos are always due on the baseline date, unless they have been given a specific due date or are invoice-related. This means that credit memo dunning is not affected if you enter only one payment term manually in a line item.
For invoice-related credit memos, the dunning level is taken from the invoice, provided this is contained in the dunning proposal. All other credit memos due are assigned to the highest dunning level determined so far for the account they belong to. This means that these credit memos are cleared with the oldest invoices.
– Down payment
We can take down payments into consideration during the dunning run. When defining the dunning procedure we must specify which down payment types are included in the dunning run. To do this, we specify the special G/L indicators for these down payment types. The dunning program treats a down payment received as a credit memo and reduces the receivables by the amount of the down payment. Since down payments are only included in the dunning run in exceptional cases, each down payment item contains a field for the dunning block. The system sets this block automatically. The down payment also contains a due date field, which the system automatically fills with the document date. You can change these fields with the document change function.
III. EXAMPLE DUNNING LETTER: (German language)
Good work Julie, very detailed document !
Thank you Venkat!
Hi Julie,
Just came across your document..Very well done!
Question: When we run F150, we get the following message once job complete:
"298 dunning notices generated, of which 121 are to be sent,
121 dunning notices printed (cust. 121, vendor 0)"
121 letters are printed.
What does the 298 dunning notices generated represent?
What could be the cause for the difference between the number of generated notices and printed notices?
Please respond.
Thanks.
Colette J.
Hi Julie,
Is there any setting to have only one line item selected for Dunning level 1, irrespective of the minimum amount and days of arrears?
Regards
Partha
Hello,
Great!
Fine thank you.
all the best
Erwin
Hi Erwin,
Thank you very much.
Good work nice document with full details . it will be help full to Fresh consultants. you have done nice job.
Thank you Sreehari.
Good content, Jullie. As always!
Thank you Marssel...
Nice work julie....very informative document.
Thanks
Deepa
Hey Julie,
Nice document. Can you please also guide about the e-mail send to customer, do the functional consultant have to do any config for the same.
Thanks !!
Raavi
Hi Raavi,
Thank you for your reading.
I'm not sure about Email sending program of SAP standard.
In my client, we customize the program to get data from table MHNK, and call function module REPRINT_DUNNING_DATA_ACCOUNT to generate Dunning letter spool. Then send to email address which is maintained in Customer master data.
Very nice!
Thanks!
Hi Julie,
Very well written document! Have you implemented automating the Dunning outputs? Currently we have configured to schedule Dunning job daily in the background that will print. However we have a requirement to automate the Dunning output to Print And/or Fax And/or Email to customers. Our ABAP developer is trying to enhance user exit F150D001, however unable to achieve the requirement we have. Any suggestions/guidance you can provide will be helpful.
Thank you in advance,
Devi
Hi Devi,
We don't implement automating for outputs, we customize one program to run manually.
You can create a new thread in forum to get the help.
Thank you for your reading.
Julie
Hi Julie,
Really very good work. GREAT
Thank you so much Sattaiah!
Hi Julie,
Well written docucments.
very nice Julie..
Thanks,
Shobhnath
Thank you for you comment Shobhnath!
Its my pleasure Julie
Hi julie
great job
i must appreciate your work its really helpful
Thanks
Mohit
Thank you very much Mohit!
Good Resource for All. Many Thanks.
Best Regards,
Naresh K.
Hi Julie
I am new to SAP Community, it is really good material for beginners.
Thanks
Wajahat
Hi Julie,
It is really wonderful document and useful to many of the FI consultants who is going to implement Dunning.
Thanks
Aditya
Good Explanation.. !
Thank all for your comment!
Hi Julie,
Really great work done and this will help for me a lot because am new to this community. I want to ask you to share how exactly balances of vendor and customer would be done, Can you please send me with this kind of document if you don't mine.
Regards,
Surya
Hi Julie,
Good Document with Detail Explanation.
Good Work...........
Hi Julie,
Very nice and detailed document.
It is very helpful Doc.
Thanks For Sharing.
Keep up the Good Work .
Best of luck.
Regards
Eugene.
Very descriptive and well written document. Good job and thank you for posting
Hi Julie,
Thanks for sharing the configuration with screen shots; makes it a lot easier for everyone to understand.
Thanks again,
Jay
Thank you for you comment, Jay!
Have a good day!
Thanks Julie, you as well!
Hello Julie,
Nice document. Thanks for sharing your knowledge and keep sharing
Thanks & Regards,
Lakshmi S
Many thanks, Lakshmi!
Julie
Very Informative!
Thanks Julie. Keep Sharing
Thank you for your reading
Hi Julie,
That was really helpful and informative. I look forward to also digesting your other work.
Hi Julie
Really helpful brief document...
Thanks
Hi Julie,
This document is very detail . I'm studying it now. Thank you for your sharing.
Thank you very much for you reading, guy!
Hope you always keep passion to SAP...
Regards,
Julie
Hi Julie, The document is very helpful.
Hi Julie,
Thanks for sharing this document. very helpfull.
I have one question that I could not find in the document. Is it possible in SAP to send a dunning letter with all the invoices included so not only the past due items. At this moment the statement contains only the 1 day past due invoices and we want to add the 0 days (today) also to the statement.
Hi Julie,
It's is very good document & self explanatory...
Thank for utilizing more time on this documentation
Regards,
Tirumala
Very Nice Jullie, Did as you have mentioned,
Its showing as Dunning Job ...... -1 was scheduled successfully
but not getting output in SP01.
What can be the error
Hi Julie,
very helpful document, thanks a lot for sharing
Regards,
Sanja
Hi Julie
Really good configuration document.
Many many thanks for sharing.It will help the beginners.
Keep on sharing and God bless U.
Soumya Ranjan
Hi Julie,
Really its good.
Thanks & Regards
Sattaiah Gundu
Hello,
Very useful.
Regards,
Basappa
Hi Julie,
Thanks for the dunning steps, they are great.
Where is the different language document? you did not attach here, can pl email me? bushanreddy@gmail.com
Thanks
Bushan
Hello Julie
Very nicely step by step explanation of the Dunning process.
Thanks
very clear all steps about dunning
Hi,
Anyone can tell if it is possible to automatically post the same interest during the dunning procedure.
Thank you in advance.
Hi Julie,
Very detail oriented document. Good job!!
Regards,
Syrus Hossain
Hi Julie,
Good, its is very detail and clear document . good job

Hi Julie,
Its Nice Document it's very helpful
Best Regards,
Chand
Hi Julie,
Very well written document.
If you can update whether, Dunning amount can be picked in the Invoice of the next month. As per project requirement, on every invoice, system should check the penalty/dunning amount and the same should be printed on to the invoice.
regards,
Sharad
Very Good Explanation
Hi Julie
The information you posted is really good and explanatory. The only Problem I see here is the Assignment of Dunning Procedure to Company Code. You mentioned T-Code being OBVU which is wrong I checked it twice. the only T-Code I could find to assign Dunning Procedure to Company Code is F8R2. Kindly Check. There is also an option to assign Company Code to Dunning Procedure under FBMP itself where it asks you to create a new Company Code which is nothing but assignment only. Kindly reply if you find any discrepancy in my statement.
Regards
Sudeep
Julie,
Very informative and helpful article. Thank you so much!
I do have a question regarding the interaction between Dunning Interval and Days in arrears.
The company I work for is moving toward implementation, and they are concerned about letters going out too soon, based on invoice due dates and dunning periods.
Our current configuration is set with a Dunning Interval of 21 days, and Days in arrears of 30, 51, 72 and 93 for the four dunning levels.
Could you give an example of when Dunning letters would be produced based on the following configuration:
Payment Terms: Due by end of Next Month
Invoice Date: 6/1/2016
Dunning Date: 10/20/2016
No payments in between invoice and Dunning Date.
The way that I read the configuration, the invoice on 6/1/2016 is late on 8/1/2016, and so the letters would be generated on 8/30/2016, 9/21/2016, 10/12/2016, and then 11/2/2016.
Do those dates sound right?
Thank you!
Steve Oswald
Hi All,
thanks for your help.
I have a problem: dunning date and level are not updated in line items after run of dunning procedure; tables MNHK and MNHD, however, are updated.
Can you help, please?
Thks in advance.
Michele.
Hi All,
sorry, I didn't run the print! Now it's working.
Thanks,
Michele.
Understandable!
Hello,
nice documentation.
I have a question: is there other setting to have dunning block active into billing document?
Customer master is empty, but when billing is created, in FBL5N I can see dunning blocked in there.
Thank you,
Claudia Kurose