Set up the dunning process

Before you proceed

If you plan to charge a dunning fee, you need to create a non-stock item (or use existing one) that will provide an account and a subaccount (if applicable) to register the collected fee, and a VAT category.

1. Go to theCustomer ledger preferences (AR101000) window.
2. In the Dunning process field on the Dunning settings tab, select how the system prepares dunning letters.
   The following options are available:
   • By customer:
     Select this option if you want the system to prepare dunning letters by grouping overdue documents by customer account.
     When you select this option, the system selects the Automatically release dunning letters check box and sets it as read-only.
   • By document:
     Select this option if you want the system to prepare dunning letters by grouping overdue documents by customer and by document dunning level.
3. Optional: Select the Automatically release dunning letters check box if you want the system to automatically release dunning letters after preparation is completed. In this case, you will not be able to edit the list of overdue documents or delete the letter draft.
   The field is available for editing if the By document option was selected in the Dunning process field.
4. Select the Include other unpaid documents check box if you want the system to automatically include documents that are not yet overdue in the list of due documents in a dunning letter. This is the default value for the Include other unpaid documents check box in the Prepare dunning letters (AR521000) window that you can change any time you prepare dunning letters.
5. Optional: If you want to collect a fee for each dunning letter you send (with the amount specified for each level), in the Item ID field , specify a non-stock item configured for this purpose.
6. Optional: Select the Automatically release dunning fee documents check box if you want the system to automatically release an invoice for the applicable dunning fee when the corresponding dunning letter is released.
7. In the table, do the following:
   1. Add a row. The added row is filled with default values. The Dunning letter level column is read-only.
   2. In the Days past due column, type the number of days to be used for comparison with the number of days the invoice is past its due date.
   3. In the Days to settle column, type the number of days that will be added to the letter date to calculate the deadline date for the payment.
      The payment deadline date is included in the Dunning letter (AR661000).
   4. In the Description column, type the description of this level.
   5. Optional: In the Dunning fee column, type the amount of the fee that will be assessed for this level.
      If you specify a dunning fee for any row, make sure that the non-stock item is specified; see Step 5.
   6. In the window toolbar, click .
8. Repeat Step 7 for each level you need.