What is 'dunning fee' in SAP SRD-FIN-ACR - FIN-Receivables?

dunning fee - Overview

• Component: SRD-FIN-ACR

• Component Name: FIN-Receivables

• Description: An additional charge added to the payment amount to cover the cost of an overdue payment.

dunning fee - Details

• 
  Key Concepts: 
  A dunning fee is a charge that is applied to an overdue invoice in SAP. It is used to encourage customers to pay their invoices on time. The dunning fee is calculated based on the number of days the invoice is overdue and the amount of the invoice. 
  
  How to use it: 
  In SAP, dunning fees can be set up in the Receivables Management component (SRD-FIN-ACR FIN-Receivables Management). The user can define the dunning fee rate and the number of days after which the fee will be applied. The user can also specify whether the fee should be applied to all overdue invoices or only those that exceed a certain amount. 
  
  Tips & Tricks: 
  It is important to ensure that the dunning fee rate is set correctly, as it can have a significant impact on customer relations. It is also important to ensure that the dunning fee is applied consistently across all customers. 
  
  Related Information: 
  For more information on setting up dunning fees in SAP, please refer to the SAP Help documentation.