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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.
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.
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.
Defining Dunning Profiles for Customers and Customer Sites
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