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How Receivables Selects Items for Dunning

Dunning Methods

Receivables lets you choose one of two dunning methods: Days Overdue or Staged Dunning. The Days Overdue method lets you assign dunning letters to a range of days past due. For example, for items that are from 10 to 20 days past due you send the first dunning letter in the set. For items 21 to 30 days past due you send the second letter in the set, and so on.

The Staged Dunning method lets you assign a dunning level (or a range of dunning levels) to each dunning letter. Depending on how you define your staged dunning letter sets, dunning levels can represent the number of times an item has been selected for dunning, or the level of past due severity for an item. The dunning level of a past due item is incremented by 1 if the item is selected for dunning when you run the Dunning Letter Generate program. For each letter in a set, you specify the minimum number of days that must pass before Receivables can increment an item's dunning level; this lets you send the next dunning letter based on the date your customer received the previous letter, rather than the total number of days past due. See: Creating Dunning Letter Sets.

Selecting Debit and Credit Items

For each customer included in your submission, the Dunning Letter Generate program determines how many days past due the oldest outstanding debit item is that has a balance exceeding the minimum dunning invoice amount in the invoice's currency. If the oldest outstanding debit item is not yet due, the program does not continue for this customer. Receivables determines that a debit item is 'past due' if its due date plus receipt grace days is less than the Dunning As of Date you specify for your dunning submission. See: Printing Dunning Letters.

The program also retrieves all of the customer's open receipts and credit memos, and subtracts the total of these credit items in a particular currency from the total of their past due debit items in the same currency. Receivables then verifies that the net total of these items in a particular currency is greater than the minimum dunning amount you specified for this currency in the customer's profile. If the new total of the past due items minus the credit items in a particular currency is less than this amount limit, Receivables excludes these past due items from dunning.

After the Dunning Letter Generate program determines which dunning letter to send to a customer, it retrieves each of the customer's past due items that have balances greater than the minimum dunning invoice amounts specified in the customer's profile for each item's currency. If you do not check the Finance Charges check box for a Dunning Letter Set, the program determines the balance due of each past due debit item by subtracting any outstanding finance charges from an item's outstanding balance. See: Creating Dunning Letter Sets.

Selecting On-Account and Unapplied Receipts

If you check the Include Unapplied Receipts check box for the dunning letter set of a customer included in your dunning submission, the Dunning Letter Generate program retrieves all on-account and unapplied receipts associated with this customer. These receipts appear in this customer's dunning letter. Receivables uses these receipts to calculate a net total balance for each currency of past due debit items. The Dunning Letter Generate program then compares these totals for each currency against this customer's minimum dunning amounts in the same currencies.

If you did not check the Include Unapplied Receipts check box, these on-account and unapplied receipts do not appear in the dunning letters of the customer with this dunning letter set. These receipts are also excluded from the Dunning Letter Generate program's calculation of the net balance due in a particular currency for this customer. See: Creating Dunning Letter Sets.

Excluding Items and Customers from Dunning

Receivables automatically excludes automatic receipts and the outstanding debit items that they include from your dunning submissions. You can manually exclude a past due item from dunning by using the Exclude from Dunning call action in the Customer Calls window. See: Customer Calls. You can exclude a customer from dunning by unchecking the Send Letters option for that customer's profile class. See: Defining Customer Profile Classes.

See Also

Printing Dunning Letters

Dunning Letters

Defining Dunning Profiles for Customers and Customer Sites

Table and Column Descriptions

Staged Dunning

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