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

SAP Term: dunning variant

• Component: FS-CD

• Component Name: Collections/Disbursements

• Description: A combination of settings that determines how open items are grouped together in dunning groups, and how many dunning notices can exist simultaneously for a contract account/an insurance object. Dunning variants are defined in the Implementation Guide.

Smart SAP Assistant

• Key Concepts: 
  A dunning variant is a set of parameters used to define the dunning process in SAP. It is used to determine the dunning procedure for overdue accounts receivable and accounts payable. The dunning variant contains information such as the dunning level, the dunning block, and the dunning interest rate. It also contains information about the dunning letter that will be sent to customers or vendors. 
  
  How to use it: 
  In SAP, a dunning variant is created in the Financials and Controlling (FICO) module. The dunning variant is then assigned to a customer or vendor master record. This allows the system to automatically generate a dunning letter when an account is overdue. The dunning letter can be sent via email, fax, or post. 
  
  Tips & Tricks: 
  When creating a dunning variant, it is important to consider the customer’s payment terms and preferences. For example, if a customer prefers to receive their invoices via email, then the dunning letter should also be sent via email. Additionally, it is important to consider the customer’s language preferences when creating a dunning letter. 
  
  Related Information: 
  The FS-CD Collections/Disbursements component of SAP provides additional features for managing overdue accounts receivable and accounts payable. This includes features such as automatic payment reminders and credit limit checks. Additionally, this component provides tools for managing customer disputes and payment plans.