What is dunning level in SAP FI-AR - Accounts Receivable?

SAP Term: dunning level

• Component: FI-AR

• Component Name: Accounts Receivable

• Description: A processing step in a dunning procedure. Dunning levels control the dunning process and determine the dunning text selected for a dunning notice. The severity of the dunning letter varies according to the dunning level. A maximum of nine dunning levels are permitted.

Smart SAP Assistant

• Key Concepts: 
  Dunning level is a feature of the SAP FI-AR Accounts Receivable component that allows users to set up a series of payment reminders for customers who have overdue invoices. The dunning level determines the severity of the reminder, with higher levels indicating more urgent reminders.
  
  How to use it: 
  To set up dunning levels, users must first define the dunning procedure in the SAP system. This includes setting up the dunning levels, specifying the criteria for each level, and defining the actions that should be taken when a customer reaches a certain level. Once the dunning procedure is set up, users can assign it to customers and invoices. When an invoice becomes overdue, the system will automatically send out reminders based on the dunning procedure.
  
  Tips & Tricks: 
  When setting up dunning levels, it is important to consider how often customers should be reminded and how severe each reminder should be. It is also important to ensure that customers are not sent too many reminders or too few.
  
  Related Information: 
  For more information on setting up dunning levels in SAP FI-AR Accounts Receivable, please refer to the SAP Help documentation.