Financials Implementation Guide
11g Release 1 (11.1.2)
Part Number E20375-02
This chapter contains the following:
Aged or Staged Dunning: Explained
Customer Dunning Configuration: Points to Consider
FAQs for Manage Dunning Configurations
Two dunning methods, aged or staged can be used to set up customer correspondence. The dunning methods are supported at the customer, account, and bill-to site levels.
Aged dunning method
Staged dunning method
Companies sending collection letters to their customers based on the oldest aged transaction can use the Aged Dunning method. Delinquent transactions are identified automatically when the Delinquency Identification concurrent process is run. Preconfigured dunning notice templates are available, or the deploying company can create their own dunning notice templates. As the oldest aged transaction moves into the next aging bucket, the content of the dunning letter can change. A single consolidated letter can be sent to eliminate sending multiple aged dunning letters to the same customer who has more than one delinquent transaction. The templates are associated to aging buckets in the dunning configuration process.
Staged dunning is based on the number of days since the last dunning letter was sent, rather than the number of days transactions are past due. A single consolidated letter can be sent to eliminate sending multiple staged dunning letters to the same customer who has more than one delinquent transaction. Delinquent transactions are identified automatically when the Delinquency Identification concurrent process is run. In cases where transactions have installment due dates, the staged dunning letter includes each overdue installment date in the body of the consolidated letter. Staged dunning letters are sent at delayed intervals defined in the Dunning Configuration process. These intervals control the timing of each letter sent. Use preconfigured dunning templates or create new ones.
Configure dunning plans and letters to facilitate regular correspondence with your customers. All of the following options except rerun the dunning process are created in the Correspondence Configuration in Functional Setup Manager.
The following are Dunning features:
Dunning letter options
Delivery options for dunning letters
Dunning configuration set
Rerun the dunning process
Use the preconfigured aged or staged dunning letters delivered by the application or create new dunning letters to meet unique requirements. Configure dunning to run in one of two methods; aged dunning which is based on the oldest past due debit item or staged dunning which is based on the number of days since the previous letter was sent.
Delivery of dunning letters to customer is:
Select the transactions and charges to include in the dunning letters.
The Dunning Letter Generate program can include invoices, debit memos, chargebacks, unapplied, and on-account receipts that are overdue.
The dunning letters can include current transactions.
Finance charges can be included as a line item.
Transactions in full dispute can either be not included or tagged with an asterisk and a note indicating it is not included in the total.
Dunning can be configured by one business unit or multiple business units.
A Set ID defines a subset of a master list of business objects, such as suppliers, customers, or in this case a Dunning Configuration Set. A Set Determinant is a business object, usually a type of organizational unit, that has a 1 to 1 relationship to Set ID. When Set Determinant is visible, Set ID can be hidden. A Set of business objects can be associated with an organizational unit, such as Business Unit or Legal Entity, to enforce data security. Then, when you are associated with organizational units, they automatically see only the subset of business objects appropriate for their organizational units. A Set or Set Determinant field appears to you as a lookup code that determines which subset of a master list of objects their organizational unit uses. For example, if you are performing a Purchasing transaction, the Set or Set Determinant value would determine which Suppliers can be used.
Rerun the dunning process to correct errors or regenerate dunning letters:
Rerun the dunning process should there be an error during any phase of the program.
Regenerate a previous dunning letter if a customer request another copy.
Keep customers from receiving dunning letters by indicating them as Exclude from dunning on the Profile tab.
Aged dunning sends dunning letters based on the age of the oldest transaction. Managers identify the dunning letter to be sent for each aging bucket and whether a follow up call is manually scheduled if the delinquency is not resolved.
Staged dunning sends dunning letters based on the age of the oldest transaction and the number of days since the last letter was sent. Managers specify how long to wait before executing the next stage and whether a follow up call is manually scheduled if the delinquency is not resolved.