Dunning Process

Introduction
Dunning letters remind customers that transactions are past due. The contents of the letters vary and the severity may escalate for older past due items. The contents of dunning letters are defined by the Campus. Multiple letters are defined to be used depending on the severity of the past due items. Dunning Letters are generated using: Letter Codes Dunning Methods IDs and Levels

1.1

Generating Dunning Letters

This section provides an overview of the dunning letter process, lists prerequisites, lists common elements, and discusses how to: Define run parameters for the AR Dunning Application Engine process (AR_DUNNING). Define the display currency for dunning letters. (Optional) Review and delete dunning letters before printing. (Optional) Review and modify dunning letters before printing. (Optional) Review and remove items from dunning letters before printing. Print dunning letters.

Understanding the Dunning Letter Process

Use these processes to generate dunning letters: The AR Dunning process (AR_DUNNING) extracts customer data and populates a temporary table, PS_AR33000_TMP. When the Dunning extract process begins, it assigns a process instance number to all items that it is processing. Predefined dunning reports merge data from the temporary table with predefined report layouts and generate dunning letters. The Dunning Letters process (DUNNING), which is a multiprocess job, runs both the AR Dunning process and then the dunning reports in one step. The job runs the Level One Dunning Letter (AR33001 and AR33A01), Level Two Dunning Letter (AR33002 and AR33A02), and Level Three Dunning Letter (AR33003 and AR33A03). The system prints data on the AR33A01, AR33A02, and AR33A03 reports only if you enabled acceptgiro processing for the business unit.

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The Dunning for All Levels process (DUNNINGA), which is a multiprocess job, runs both the AR Dunning process and then the Dunning Letter All Levels report (AR33000 or AR33A00) in one step. The system prints the AR33A00 report only if you enabled acceptgiro processing for the business unit.

Note. Use the Dunning for All Levels process if you have more than three letter codes or for the Dunning by Action List method. Note. If you run the Dunning or Dunning for All Levels multi process jobs, you cannot change the text or delete unwanted letters before printing.
If you select the Include Finance Charge field when you create a dunning method, and you run the process for customers that are assigned that dunning method, you must run the Overdue Charges Application Engine process (AR_OVRDUE) before you generate the letters to create the overdue charges invoice. AR Dunning Process Data Extract To generate dunning letters, you run the extract process, review and edit the results as needed, and then run a dunning report that prints a dunning letter. When you enter the run parameters for the AR Dunning process, you select the scope of the dunning letters: Unit level: Generates a letter for each correspondence customer in the business unit. Correspondence customer level: Generates a single letter containing all past-due items for all customers in the correspondence group. Customer level: Generates a single letter for the specified customer's correspondence customer. The process uses the default dunning ID that is assigned to the customer on the Correspondence Options page. If none is defined for the customer, it uses the default dunning ID that is assigned to the business unit on the Receivables Options - General 1 page. Review and Edit of Letters Before Printing After running the AR Dunning process, you can: Review the letters before printing them. View a list of the letters that the process generates. Selectively delete items that are on a letter. Delete letters that you do not want to send. Change the text for an individual letter before printing. After you review the letters and make any needed onetime changes, run the dunning reports that print dunning letters.

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Days, Intervals, and Action Lists When past-due items exist for a customer, dunning letters are sent based on the dunning methods that you selected when you set up the system. The following figure shows dunning by days, where the age of the item determines the level of the dunning letter sent. In this scenario, depending on when the dunning run is performed, a customer could receive a level-three letter as a first correspondence. If a customer has multiple past-due items, that customer receives one letter based on the age of his or her oldest item, rather than multiple letters

1.2

Configuration

The following configuration is required to generate the Dunning Letter: Letter Code Multiple letters can be created Dunning Methods Depending on the number of days late a specific Letter Code associated in the sequence will print

1.3

Defining Letter Codes

Campuses define letter codes that specify the text to be printed on a dunning letter. Navigation: Set Up Financials/Supply Chain > Product Related > Receivables > Options > Letter Code Processing Step / Field Name Click the Add a New Value Tab. 1. SetID: Select or enter the SetID. 2. Letter Code: Specify Code. 3. Click the ADD button. Screenshot / Description

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Processing Step / Field Name Effective Date: 01/01/2000 Description: Description of Code Enter

Screenshot / Description

Letter Code Type: Dunning Letter Dunning Letter Campus Specific. Text:

4. Click the SAVE button. Example of D1 Text: This is a reminder that there is a 30 days past due balance in your

account. Your department was sent an invoice for the balance shown below. Please contact Accounts Receivable to indicate a payment date.
2nd Letter Example The severity of the text in subsequent letters should escalate, to the most severe being a demand or final notice similar to the one shown below.

Example of D2 Text: Our records still reflect an outstanding balance on your account due to XXCMP. The balance due is now 60 days past due. Please contact us if there are any discrepancies. Your immediate attention is requested and appreciated.

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Processing Step / Field Name 3rd Letter Example

Screenshot / Description

Example of D3 Text: Our records still reflect an outstanding balance due to XXCMP. Your

account is now 90 days past due. Contact us immediately to resolve any discrepancies. Otherwise, your account will be submitted to the Accounting Services Manager for further action.
4th Letter Example

Example of D4 Text: Your account is seriously delinquent. The balance is now 120 days past

due. If payment is not received within 15 days your organization will be submitted to a collection agency for further action. Contact Accounts Receivable immediately at (XXX) XXX-XXXX.

1.4

Defining Dunning Methods

The Dunning Method determines which letters the process generates. When you define the Dunning ID, select a dunning method that determines which items appear in the letters and which letter code to use when you print the letters. Also, indicate specific items to exclude or the circumstances that should cancel the creation of a letter. You assign the Dunning ID to a business unit and override it for

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individual customers. The AR Dunning Application Engine process (AR_DUNNING) uses the rules for the dunning ID associated with the business unit or customer to generate the dunning letters. Navigation: Set Up Financials/Supply Chain > Product Related > Receivables > Credit/Collections > Dunning Method Processing Step / Field Name Click the Add a New Value Tab. 1. SetID: Select or enter the SetID. 2. Dunning ID: Specify ID. 3. Click the ADD button. Screenshot / Description

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Processing Step / Field Name Dunning ID Tab Effective Date: 01/01/2000 Description: Days. Dunning by

Screenshot / Description

Dunning Method: Dunning by Days. Item Exclusion Options: Select types of Items that should not be included in the dunning letter. Cancel Document Options: Select criteria that would cancel the document from processing. Dunning Grace Days: Indicates the number of days after calculated Due/Level Date the letter should be generated. 4. Click the SAVE button.

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Processing Step / Field Name Dunning Level Tab Define each Level for Dunning with the number of days past due and the Letter Code to be sent for each level.

Screenshot / Description

Explanation with Examples:

Configuring letter codes 43 and 89

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Configuring Dunning method OVR02 to include Letter Codes 43 and 89.

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Running the Extract Dunning info process

Viewing the Preview Letter

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Viewing the Dunning Number generated for the letter code 43 and the body text (Memo)

Printing the Dunning Letter for Dunning number 2411

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The dunning letter is generated in the .pdf format.

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Sample Dunning Letter

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