Defining Dunning Profiles for
Customers and Customer Sites
After you define your dunning letters and assign these letters to your dunning letter sets, assign these sets to the customers and sites to which you want to send dunning letters. Use the Customer Profile Classes window to specify dunning values for a customer or site. See: Defining Customer Profile Classes.
Define Receipt Grace Days
Receipt grace days represent the number of days you will allow a customer's payment to be overdue before selecting them for dunning and begin assesing finance charges. For example, when you define your customer profile classes, if you set Receipt Grace Days to 10, customers assigned to this profile class have ten days beyond the due dates of their outstanding invoices before these items are considered past due. Receivables uses receipt grace days with the Days From and To ranges that you specify for dunning letters within a dunning letter set to determine if a customer should be selected for dunning and which letter should be sent.
If you have specified a number of receipt grace days for this customer's profile, and this number is greater than the number of days that this oldest outstanding item is late, then the Dunning Letter Generate program does not continue for this customer. For example, if a customer has 5 receipt grace days in their profile, and its oldest outstanding debit item is 4 days past due, Receivables does not select this customer for dunning. Use the Customer Profile Classes window to define your customer's receipt grace days.
Define Minimum Dunning Amount by Currency
Receivables lets you define minimum dunning amounts by currency for your customers and their sites. If a customer has a past due balance in a specific currency that is greater than the minimum dunning amount you specified for this currency in the customer's profile, Receivables selects this customer for dunning.
The dunning letter that Receivables selects for a customer during a dunning submission does not include past due debit items in currencies whose minimum dunning amounts have not been exceeded. For example, if a customer has a minimum dunning amount in French francs of 8,000 in their profile, and the sum of their past due items in French francs is 6,000, Receivables does not include these items on the dunning letter selected for this customer.
Define Minimum Invoice Amount by Currency
You can also define the minimum invoice amount in a specific currency for a customer. If a customer does not have any past due items in a specific currency with balances greater than the minimum invoice amount that you specify for this currency, Receivables does not select this customer for dunning in this currency.
For example, the site of the customer SouthWestern Charities has a minimum dunning amount in U.S. dollars of 100 and a minimum dunning invoice amount of 40. If this customer site has four invoices in U.S. dollars that are past due, each having outstanding balances of 30, Receivables will not select this customer site for dunning in this currency, even though its total past due balance in U.S. dollars (120) exceeds its minimum dunning amount.
The Receivables dunning program requires that both the minimum dunning amount and the minimum invoice amount limits for a currency are exceeded before it selects a customer for dunning in this currency. If you have not defined a minimum dunning invoice amount or a minimum dunning amount for the profile of a customer you are dunning, then the Dunning Letter Generate program assumes that both of these amounts are zero for its calculations. Define the minimum dunning amount and minimum dunning invoice amount in the Customer Profile Classes window.
Assign Dunning Letter Business Purpose to an Address
After determining which customers will be included in a dunning submission, the Dunning Letter Generate program examines the addresses of these customers. If you assigned a Dunning business purpose to a customer address, the Dunning Letter Generate program creates a single, consolidated dunning letter for this site which includes past due items from all of this customer's sites. If you have not assigned a Dunning business purpose to a customer address, the Dunning Letter Generate program creates a dunning letter for each of this customer's sites that has past due debit items. See: Assigning a Business Purpose to a Customer Address.
See Also
Defining Customer Profile Classes
How Receivables Selects Items for Dunning
Printing Dunning Letters
