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Staged Dunning

Unlike the Days Overdue method, in which you group items to a range of days past due, the Staged Dunning method lets you assign a dunning level to each past due debit item. This lets you represent past due debit items in terms of the date that the previous dunning letter was sent, instead of the number of days those items are past due.

For example, on JAN-01 your customer receives the second dunning letter in your dunning letter set which states: "Our records indicate that the following items are past due. Please remit payment for these items within 10 days." If the Minimum Days parameter is 10 for this letter and you do not receive payment for those items by JAN-11, Receivables increments the dunning level for each item by 1 and sends the next, more severe letter in the set.

You can modify the dunning level for a past due item in the Dunning History window. See: Viewing Dunning History.

The following examples describe the differences between the Days Overdue and the Staged Dunning methods by showing the results of various dunning submissions using each method.

Both examples assume that the Dunning Letter Generate program is submitted every two weeks.

Example 1: Days Overdue Dunning Method

This example assumes the following invoices and letter set definition:

Invoices

Invoice Due Date Days Past Due As Of        
30 - MAR 15 - APR 30 - APR 15 - MAY 30 - MAY
Invoice 101 15 - MAR 15 30 45 60 75
Invoice 102 15 - APR 15 30 45
Invoice 103 15 - MAY 15

Letter Set Definition

Send Letters in Sequence = Yes

Letter Name Days Past Due From - To
Letter 1 15-30
Letter 2 31-60
Letter 3 61-99

If you submit the Dunning Letter Generate program between March 16 and March 29, no dunning letter is generated because the oldest overdue invoice (Invoice 101) is less than 15 days late, which is not within the range of Days Past Due of any dunning letter in the set.

However, if you submit the Dunning Letter Generate program on March 30, Invoice 101 appears on Letter 1 because it is now 15 days overdue. If you submit the Dunning Letter Generate program on April 15, Invoice 101 again appears in letter 1 because it is now 30 days overdue (Letter 1 contains items 15-31 days overdue).

The examples below show the results of three additional dunning submissions.

Results of dunning submission on April 30:

Invoice and Days Overdue Item Printed On
Invoice 102 (15 days overdue) Dunning Letter 1
Invoice 101 (45 days overdue) Dunning Letter 2

Results of dunning submission on May 15:

Invoice and Days Overdue Item Printed On
Invoice 102 (30 days overdue) Dunning Letter 1
Invoice 101 (60 days overdue) Dunning Letter 2

Results of dunning submission on May 30:

Invoice and Days Overdue Item Printed On
Invoice 103 (15 days overdue) Dunning Letter 1
Invoice 102 (45 days overdue) Dunning Letter 2
Invoice 101 (75 days overdue) Dunning Letter 3

Example 2: Staged Dunning Method - Separate letters for distinct dunning levels

This example assumes the same invoices from the previous example, but using the following Staged Dunning letter set definition:

Letter Name Dunning Level From - To Minimum Days Between Staged Dunning
Letter 1 1 - 1 15
Letter 2 2 - 2 10
Letter 3 3 - 100 5

Results of dunning submission between March 16 - March 29:

Overdue Invoice Days Late Level Before Dunning Level After Dunning Days Since Last Dunning Debit Item Printed On
Invoice 101 1 - 14 None

The only overdue invoice (Invoice 101, due March 15) is not selected for dunning since it has only been 1-14 days since its due date and this is less than the number of Minimum Days between staged dunning specified for the next dunning level (Level 1).

Results of dunning submission on March 30:

Overdue Invoice Days Late Level Before Dunning Level After Dunning Days Since Last Dunning Debit Item Printed On
Invoice 101 15 1 Letter 1

Invoice 101 is assigned to dunning level 1 and is printed on Letter 1, since it has been 15 days since its due date and this meets the Minimum Days between staged dunning requirement for Dunning Level 1 (15 days).

Results of dunning submission on April 15:

Overdue Invoice Days Late Level Before Dunning Level After Dunning Days Since Last Dunning Debit Item Printed On
Invoice 101 30 1 2 15 Letter 2

Invoice 101 is assigned to the next dunning level (Level 2) and is printed on Letter 2 since it has been 15 days since its previous dunning correspondence date and this exceeds the Minimum Days between staged dunning for level 2 (10 days).

Results of dunning submission on April 30:

Overdue Invoice Days Late Level Before Dunning Level After Dunning Days Since Last Dunning Debit Item Printed On
Invoice 101 45 2 3 15 Letter 3
Invoice 102 15 1 Letter 1

Invoice 102 is assigned to dunning level 1 and is printed on Letter 1 since it has been 15 days since its due date and that meets the Minimum Days between staged dunning for level 1 (15 days).

Invoice 101 is assigned to dunning level 3 and is printed on Letter 3, since it has been 15 days since its previous dunning correspondence date and that exceeds the Minimum Days between staged dunning for level 3 (5 days).

Results of dunning submission on May 15:

Overdue Invoice Days Late Level Before Dunning Level After Dunning Days Since Last Dunning Debit Item Printed On
Invoice 101 60 3 4 15 Letter 3
Invoice 102 30 1 2 15 Letter 2

Invoice 102 is assigned to dunning level 2 and is printed on Letter 2 since it has been 15 days since its previous dunning correspondence date and that exceeds the Minimum Days between staged dunning for level 2 (10 days).

Invoice 101 is assigned to dunning level 4 and is printed again on Letter 3, since it has been 15 days since its previous dunning correspondence date and that exceeds the Minimum Days between staged dunning for level 4 (5 days).

One day after the dunning submission on May 15, the customer calls and promises to resolve Invoice 101 in 15 days. You agree to lower the dunning level for that item to 0 so it will not be selected for dunning the next time you submit the dunning letter generate program.

Note: You can modify the dunning level for an item in the Dunning History window. See: Viewing Dunning History.

Results of dunning submission on May 30:

Overdue Invoice Days Late Level Before Dunning Level After Dunning Days Since Last Dunning Debit Item Printed On
Invoice 101 75 0 0 15 None
Invoice 102 45 2 3 15 Letter 3
Invoice 103 15 1 Letter 1

Invoice 103 is assigned to dunning level 1 because it has been 15 days since its due date and that meets the Minimum Days between staged dunning for level 1 (15 days).

Invoice 102 is assigned to dunning level 3 because it has been 15 days since its previous dunning correspondence date and that exceeds the Minimum days between staged dunning for level 3 (5 days).

Invoice 101 is not selected for dunning because it has only been 14 days since its dunning level was manually adjusted and that number is less than the Minimum Days between staged dunning for level 1 (15 days).

Summary of Examples 1 and 2: Days Overdue vs. Staged Dunning Method

The table below compares the results from the previous examples.

Date Days Overdue Method
Invoice #: Appears on... 		Staged Dunning Method
Invoice #: Appears on...
March 16-29 (no letter generated) (no letter generated)
March 30 Invoice 101: Dunning Letter 1 Invoice 101: Dunning Letter 1
April 15 Invoice 101: Dunning Letter 1 Invoice 101: Dunning Letter 2
April 30 Invoice 101: Dunning Letter 2
Invoice 102: Dunning Letter 1 		Invoice 101: Dunning Letter 3
Invoice 102: Dunning Letter 1
May 15 Invoice 101: Dunning Letter 2
Invoice 102: Dunning Letter 1 		Invoice 101: Dunning Letter 4
Invoice 102: Dunning Letter 2
May 30 Invoice 101: Dunning Letter 3
Invoice 102: Dunning Letter 2
Invoice 103: Dunning Letter 1 		Invoice 101: (not selected)
Invoice 102: Dunning Letter 3
Invoice 103: Dunning Letter 1

Example 3: Staged Dunning - Single Letter Based on Highest Dunning Level

This example assumes that you are using the same letter set definition as Example 2, but when you submit the dunning letter generate program you set the Single Staged Letter option in the Print Dunning Letters window to Yes. If the Single Staged Letter option is Yes, Receivables prints all items selected for dunning in the letter defined for the highest dunning level.

For example, Invoice 101 and Invoice 102 are selected for dunning. Invoice 101 is at dunning level 2 and Invoice 102 is at dunning level 4. Receivables sends the dunning letter assigned to dunning level 4 and includes both debit items in that letter.

If the Single Staged Letter option is No, the debit items that appear in the dunning letter are at dunning levels within the range defined for that letter. For example, items assigned to dunning level 2 only appear in the dunning letter whose range includes dunning level 2.

Results of dunning submission between March 16 - March 29:

Overdue Invoice Days Late Level Before Dunning Level After Dunning Days Since Last Dunning Debit Item Printed On
Invoice 101 1 - 14 None

The only overdue invoice (Invoice 101, due March 15) is not selected for dunning since it has only been 1-14 days since its due date and this is less than the number of Minimum Days between staged dunning specified for the next dunning level (Level 1).

Dunning Letter Generate program submission on March 30:

Overdue Invoice Days Late Level Before Dunning Level After Dunning Days Since Last Dunning Debit Item Printed On
Invoice 101 15 1 Letter 1

Invoice 101 is assigned to dunning level 1 and is printed on Letter 1, since it has been 15 days since its due date and this meets the Minimum Days between staged dunning requirement for Dunning Level 1 (15 days).

Dunning Letter Generate program submission on April 15:

Overdue Invoice Days Late Level Before Dunning Level After Dunning Days Since Last Dunning Debit Item Printed On
Invoice 101 30 1 2 15 Letter 2

Invoice 101 is assigned the next dunning level (Level 2) and is printed on Letter 2 since it has been 15 days since its previous dunning correspondence date and this exceeds the Minimum Days between staged dunning for level 2 (10 days).

Results of dunning submission on April 30:

Overdue Invoice Days Late Level Before Dunning Level After Dunning Days Since Last Dunning Debit Item Printed On
Invoice 101 45 2 3 15 Letter 3
Invoice 102 15 1 Letter 3

Invoice 102 is assigned to dunning level 1 because it has been 15 days since its due date and that meets the Minimum Days between staged dunning for level 1 (15 days).

Invoice 101 is assigned to dunning level 3 because it has been 15 days since its previous dunning correspondence date and that exceeds the Minimum Days between staged dunning for level 3 (5 days).

Both Invoice 101 and Invoice 102 will be printed on Letter 3 since the highest dunning level of all items selected for dunning is within the range of dunning levels assigned to Letter 3.

Results of dunning submission on May 15:

Overdue Invoice Days Late Level Before Dunning Level After Dunning Days Since Last Dunning Debit Item Printed On
Invoice 101 60 3 4 15 Letter 3
Invoice 102 30 1 2 15 Letter 3

Invoice 102 is assigned to dunning level 2 because it has been 15 days since its due date and that exceeds the Minimum Days between staged dunning for level 2 (10 days).

Invoice 101 is assigned to dunning level 4 because it has been 15 days since its previous dunning correspondence date and that exceeds the Minimum Days between staged dunning for level 4 (5 days).

Both Invoice 101 and Invoice 102 will be printed on Letter 3 since the highest dunning level of all items selected for dunning (level 4) is within the range of dunning levels assigned to Letter 3.

See Also

Printing Dunning Letters

Dunning Letters

Defining Dunning Profiles for Customers and Customer Sites

Creating Dunning Letter Sets

Table and Column Descriptions

Viewing Dunning History

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