SAP Dunning Procedure Configuration

Purpose
SAP generate dunning letter for reminding the customer outstanding payment. SAP allows
dunning both customer and vendor.
Configuration Path: IMG > Financial Accounting > Accounts Receivable and Accounts Payable >
Business Transactions > Dunning >

Share to you friend Share

Define Dunning Areas

T-Code: N/A

Dunning Areas can be used to determine dunning procedure if there are many business units are
responsible for carrying out dunning within one company. In SAP, the business area can correspond to a
profit center, distribution channel, sale organization, or a business area.
Once dunning area is defined. You have to maintain dunning area in customer/vendor master
record (tab correspondence in company view).
You also can use dunning area to determine different dunning letter in each dunning procedure.
You can find more information in topic of Dunning Procedure.
Define Dunning Keys
T-Code: N/A

Dunning key is used to limit the dunning level of an item.

Define Dunning Groupings

T-Code: N/A

Generally, dunning notices are created per customer/vendor. Dunning grouping is another
feature that SAP provides for you to group transaction based on certain aspect and dun these together.
In Dunning Grouping, You can enter grouping criteria and order to check for both customer and
vendor or each.
 To use Dunning Grouping, You have to maintain grouping key in customer/vendor master
record (tab correspondence in company view).

Define Dunning Block Reasons

T-Code: N/A

You define dunning block reason in this step. Dunning block is used to block transaction from
dunning run. You can enter dunning block in both customer/vendor master record and FI document.

Define Interest Rates

T-Code: OB42

In this activity, you can define interest rate of each interest indicator and currency. The interest
indicators are currently used by the dunning program for the calculation of interest on arrears and for
discounting receivables.

Define Dunning Procedure

T-Code: FBMP
Dunning program works based on Dunning Procedures. Dunning Procedures are the key to
determine dunning interval, grace period for the due date determine, dunning charge) and dunning levels.
Before start creating dunning procedure, you have to complete step above first.

1. Create new procedure

2. Define Dunning Interval in Day
 During every dunning run, system checks whether the run date is at least this number of days since
the date of the last dunning run. For example, you define dunning interval as 14 days. If the last dunning
date is not over 14 days, dunning notice cannot be created even new item have become overdue.

3. Define Dunning Level

In this activity, you determine the number of the highest dunning level set up to dunning procedure.
Once number of dunning level is determined, you have to put day in arrears for each dunning levels.
 4. Define Dunning Charge

You can specify dunning charge by fixing charge amount or percentage and show in dunning notice.
The dunning charge is printed on every notice.

5. Define Dunning Text

Dunning Text is used to determine form of dunning notice. You can assign form by Company Code,
Dunning Level and Dunning Area. Dunning Form can be both SAPscript and Smart Forms.

6. Assign Special G/L to Dunning Procedure

 In this activity, you can assign the selected Special G/L that you would like to apply to this dunning
procedure.

Related Topic
How to use F150 in SAP (SAP Dunning)
Remark
Dunning can be done for both positive and negative arrear (refer to SAP note 333506).