What is dunning procedure in SAP FI - Financial Accounting?

SAP Term: dunning procedure

• Component: FI

• Component Name: Financial Accounting

• Description: A pre-defined procedure specifying how customers or vendors are dunned.

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• Key Concepts: 
  A dunning procedure is a process used in SAP Financial Accounting (FI) to remind customers of overdue payments. It involves sending out reminders and notifications to customers who have not paid their invoices on time. The dunning procedure can be customized to include different levels of reminders, such as emails, letters, or phone calls.
  
  How to use it: 
  In SAP FI, the dunning procedure is set up in the Dunning Program. This program defines the criteria for when a customer should be sent a reminder, such as the number of days past due or the amount of money owed. It also defines the type of reminder that should be sent, such as an email or letter. The dunning program can be configured to send out reminders automatically or manually.
  
  Tips & Tricks: 
  When setting up a dunning procedure in SAP FI, it is important to consider the customer’s payment history and preferences. For example, if a customer typically pays late, it may be beneficial to send out reminders earlier than usual. Additionally, it is important to consider the customer’s preferred method of communication when sending out reminders.
  
  Related Information: 
  For more information on setting up a dunning procedure in SAP FI, please refer to the SAP Help Portal or contact your local SAP consultant.