Dunning Procedure

Vendor Master

Prepared By:
Ms. Pramila Nagaraj First Class MBA Finance Graduate (2010) - FRESHER Global Academy of Technology, Bangalore (VTU- Belgaum) SAP Financials Associate Certified Consultant Trainee/Fresher Certified Candidate @ Source One Management Services Pvt. Ltd Bangalore

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Dunning procedure in Vendor master

3.3.3.4.1.2 3.3.3.4.1.2.1 Use Dunning Procedure Defining Dunning Procedures

You enter the settings that control the dunning program by: 1. 2. Specifying the company codes to include in dunning. Setting up the dunning procedure you want to use (dunning interval, grace periods for the due date

determination and number of dunning levels) 3. Setting the dunning charges. 4. 5. Specifying the net payment due date at which a particular dunning level is reached. Specifying the dunning notice you want to send to your customers.

The following dunning procedures have been defined for dunning customers: 0001 Z030 Four-level dunning notice, every two weeks Interest calculation after 30 days

The dunning procedure Z030 specifies that customers who do not pay within 30 days are automatically in arrears. The customers receive a dunning notice without interest amounts. From then on, interest is calculated for the open items using the interest calculation program (see also the section on the interest calculation program). Procedure 1. Access the activity using one of the following navigation option: Transaction code SPRO IMG menu Financial Accounting (NEW) Accounts Receivable/ Accounts Payable Business Transactions Dunning Dunning Procedure Define Dunning Procedures 2. 3. Choose New procedure. Make the following entries:

Field name Entry Dunn.Procedure 0001 Name Four-level dunning notice, every two weeks Dunning Interval in Days 014 No.of dunning levels 4 Total due items from dunning level 3 Min.days in arrears (acct) 6 Line item grace periods 2 Public hol.cal.ID 08 Interest indicator 01 Standard transaction dunning X 0001

Ref.Dunning Procedure for Texts

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4. 5.

Choose Dunning Levels. Maintain the following entries: Dunning level 3 Dunning level 4

Field name Dunning level 1 Dunning level 2 Days in arrears 2 16 30 44 Calculate interest Always dun Print all items Payment deadline 6. X X X X 10 7 X

Choose Charges, enter currency EUR and make the following entries: Dunning level 3 Dunning level 4

Field name Dunning level 1 Dunning level 2 Dunn.charge 5 5 10 10 7.

Choose Minimum Amounts, enter currency EUR and make the following entries: Dunning level 2 10 10 10 Dunning level 3 Dunning level 4

Field name Dunning level 1 Minimum amount 1 2 5 Min.amt for interest 1 5

8. Choose Dunning Texts, enter company code BP01 and choose account type customer. Make the following entries: Field Form 9. 10. 11. 12. Dunning level 1 Dunning level 2 Dunning level 3 Dunning level 4 Z_F150_DUNN_01 Z_F150_DUNN_01 Z_F150_DUNN_02 Z_F150_DUNN_02

Choose Save. Choose Back and maintain the next dunning procedure. Choose New procedure. Make the following entries: Z030

Field name Entry Dunning Procedure

Name Interest Calculation after 30 days Dunning Interval in Days 014 No.of dunning levels Public hol.cal.ID 08 Interest indicator 01 Standard transaction dunning X Z030 2

Ref.Dunning Procedure for Texts 13. Choose Dunning Levels.

14. Maintain the following entries: Field name Dunning level 1 Dunning level 2 Days in arrears 14

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Calculate interest X Print all items X X Payment deadline 15. 7

Choose Dunning Texts, enter company code BP01 and choose account type customer.

16. Make the following entries: Field name Dunning level 1 Dunning level 2 Form 17. Z_F150_DUNN_04 Choose Save. Defining Dunning Procedures Z_F150_DUNN_04

3.3.3.4.1.2.2 Use

In this activity you enter the settings that control the dunning program. Procedure 1. Access the activity using one of the following navigation option: Transaction code SPRO IMG menu Financial Accounting (NEW) Accounts Receivable/ Accounts Payable Business Transactions Dunning Dunning Procedure Define Dunning Procedures 2. Choose the menu Environment Company Code Data and make the following entries: Company Code Dunning by Area Variant Items Dunn. Comp. code BP01 BP01 K1 P1 Separate Dunn. Notice Ref. Comp. Code Sort. Variant Acct Sort.

BP01

3.3.3.4.1.2.3

Defining Interest Rates

Use In the dunning program, an interest rate of 7.68% has been defined for interest indicator 01 and the currency EUR. This interest rate is the same as the rate set for the interest calculation program and is calculated from the discount rate (2.68%) and a surcharge of 5%. Procedure 1. Access the activity using one of the following navigation option: Transaction code SPRO IMG menu Financial Accounting (NEW) Accounts Receivable/ Accounts Payable Business Transactions Dunning Dunning Procedure Define Interest Rates 2. Make the following entries: Interest Indicator Currency 01 01.01.1991 7.680 01 PHP 01.01.1991 Valid from 7.680 7.680 Debit Interest Credit Interest

7.680

3.3.3.4.2 3.3.3.4.2.1

Printout Defining Sender Details for Dunning Forms

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Use In this activity, you define which standard texts are used for the header, the footer, and the sender address in the letter window for each company code. Procedure 1. Access the activity using one of the following navigation option: Transaction code SPRO IMG menu Financial Accounting (NEW) Accounts Receivable/ Accounts Payable Business Transactions Dunning Printout Define Sender Details for Dunning Forms 2. Make the following entries: Dunning Area Text ID Header Text ADRS 3.3.3.4.2.2 Use ADRS_HEADER Footer Text Signature Text Sender ADRS_SENDER

ADRS_FOOTER

ADRS_SIGNATURE

Allowing Dunning with SAP script Forms

You have the possibility to use either SAP script forms or Smart Forms in the dunning procedure. In this transaction you have to specify which forms are used for dunning in this system. This table is cross-client. Any changes you make in this table will take effect in all clients of your system. Prerequisites You have processed the previous mentioned steps. 1. Procedure Access the activity using one of the following navigation options:

Transaction code BF31 IMG menu Financial Accounting (NEW) Financial Accounting Global Settings (New) Tools Customer Enhancements Business Transaction Events Settings P/S Function Modules u2026 of an SAP appl. 2. On the Change View Publish & Subscribe BTE: SAP Enhancement: Overview screen, check - and if necessary change - the following entries: Field name Description User action and values Event Event (Business Transaction Event) Country Ctr (Country ISO Code) Blank Appl. Funct Notes this entry already exists

00001720

Appl. (Application Indicator for BTE) FI-FI Function Module FI_PRINT_DUNNING_NOTICE

this function module needs to be entered if

SAPSCRIPT forms should be used

3.

Choose Save.

If you want to use Smart Forms then you have to enter for above mentioned event 00001720 function module FI_PRINT_DUNNING_NOTICE_SMARTF. Please be aware that in installation guide and configuration guide the set up for customizing is only made for dunning with SAP script forms and not for dunning with Smart Forms.

Question: We create dunning for customer to send them reminders for payment....But why do we use dunning for vendors? Answer:

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If you dun customers who are also vendors and want to clear the items, the dunning program lists both the overdue customer items and the overdue vendor items in the dunning proposal, and determines a joint balance. When you dun a customer who is also a vendor, only the master record information of the customer is relevant. The items can only be cleared if the same dunning procedure has been defined in the standard dunning area for both customer and vendor.

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