What is 'dunning key' in SAP FI - Financial Accounting?

dunning key - Overview

• Component: FI

• Component Name: Financial Accounting

• Description: A tool that identifies items to be dunned separately, such as items you are not sure about or items for which payment information exists.

dunning key - Details

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  Key Concepts: 
  A dunning key is a tool used in SAP Financial Accounting (FI) to define the dunning procedure for overdue accounts receivable. It is used to determine the dunning level, the dunning interval, and the dunning charges that will be applied to overdue invoices. The dunning key also determines the language and currency of the dunning letter. 
  
  How to use it: 
  The dunning key is used to define the parameters of the dunning procedure. It can be used to set up different levels of dunning, with each level having its own set of parameters. For example, a company may set up a first level of dunning with a one-week interval and no charges, and a second level with a two-week interval and a charge of 5%. The dunning key can also be used to specify the language and currency of the dunning letter. 
  
  Tips & Tricks: 
  When setting up a dunning key, it is important to consider the company’s payment terms and policies. It is also important to consider the customer’s payment history and creditworthiness when setting up the parameters for each level of dunning. 
  
  Related Information: 
  For more information on setting up a dunning key in SAP FI, please refer to SAP Help documentation or contact your local SAP consultant.