What is dunning activities in SAP FS-CD - Collections/Disbursements?

SAP Term: dunning activities

• Component: FS-CD

• Component Name: Collections/Disbursements

• Description: Actions in the dunning activity run such as Create payment form, Send note to clerk, Start printing etc. Dunning activities are carried out dependent on the dunning procedure, dunning level or dunning amount as well as the currency and creditworthiness of a business partner.

Smart SAP Assistant

• Key Concepts: 
  Dunning activities are a component of the SAP Financial Services Collections and Disbursements (FS-CD) module. Dunning activities are used to manage customer accounts receivable and ensure that customers pay their invoices on time. It involves sending out reminders and notices to customers who have overdue payments, as well as taking legal action if necessary.
  
  How to use it: 
  The dunning activities component of FS-CD allows users to set up automated dunning processes for customer accounts. This includes setting up dunning levels, which determine the severity of the reminder or notice sent out to customers. Users can also set up payment plans for customers who are unable to pay their invoices in full.
  
  Tips & Tricks: 
  When setting up dunning levels, it is important to consider the customer’s payment history and creditworthiness. This will help ensure that the right level of reminder or notice is sent out at the right time. It is also important to keep track of customer responses to dunning activities, as this will help inform future decisions about how to manage customer accounts.
  
  Related Information: 
  The SAP Financial Services Collections and Disbursements (FS-CD) module also includes other components such as payment processing, dispute management, and credit management. These components can be used in conjunction with dunning activities to ensure that customer accounts are managed effectively.