SAP Dunning process

1. DUNNING PROCESS SAP - MODULE FI HAIDT2

2. Agenda What is Dunning? Dunning Business Process Key Terms of Dunning in SAP Dunning program in SAP Configurations 2 Dunning Process

3. What is Dunning? Dunning is the process of notifying customers/vendor that an unpaid obligation has become past due. Dunning is correspondence involving Credit Control and Interest Calculation 3 Dunning Process

4. Dunning Business Process Phone call or send payment reminder Dunning letters to customer Legal letter to customer Write-off 4 Dunning Process

5. Key Terms for Dunning in SAP Dunning procedure Dunning area Dunning interval in days Dunning level Minimum days in arrears Grace period Minimum amount Dunning Interest Dunning charge 5 Dunning Process

7. How frequently

8. How many levels of dunning

9. How to tell with customer

10. What is minimum amount

12. Dunning interval in days Minimum number of days that must elapse after a dunning run before an account can be dunned again Compare with last dunning date stored in master records and line items Dunning Process 8

13. Dunning level Determines text on dunning letters Determines if interest is to be calculated Increase one by one base on number of days overdue Dunning Process 9

14. Dunning level Dunning Process 10 OverdueItem OldLevel New Level=Old Level + 1 The Dunning Letter

15. Minimum days in Arrears Minimum number of days after due date for an item to be dunned first time Dunning Process 11 Minimum Days in Arrears Level 1 0 1 2 3 4 5 6 7 8 9 10 11 12 Level 2 Due date

16. Grace period Items that are overdue less or equal to the grace period will not be dunned (works like a bonus period) Dunning Process 12 Grace Period Minimum Days in Arrears # Days in Arrears 0 1 2 3 4 5 6 7 8 9 10 11 12

17. Grace periods and Days in Arrears Dunning Process 13

18. Other terms Minimum amount Total due amount for an account to be dunned Count on each currency, each dunning level Can be amount or percentage per open items Interest Calculator Default interest calculator Lower priority than indicator assigned in master record Payment deadlines Days printed on dunning letter Use calendar to avoid off-working days Dunning charge Fee counted for dunning Can be amount or a percentage of dunning amount Dunning Process 14

19. Dunning Process 15

20. Dunning program in SAP Dunning Process 16

21. Dunning program in SAP Dunning Process 17

22. Implementation Considerations Define dunning procedures(FBMP) Define dunning areas (OB61) Define interest rates (OB42) Maintain dunning texts (Form) (SE71/SMARTFORMS) Maintain customer master records (FD02) Dunning Process 18

23. Questions Dunning Process 19