What is dunning?

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  • Jul 31st, 2006

Dunning Business Processes


Dunning is actually the process by which you ?bill? or ?invoice? a customer for past due items.

With regards bad Checks for example   dunning procedure could follow these steps:


? Step 1: Phone call to customer on receipt of bad check ? at this stage, perform the journal posting outlined in section on Returned Checks

? Step 2: Letter to customer (+10 days)

? Step 3: Letter to CO (+7 days)

? Step 4: Legal letter to customer (→ DD139) (+13 days)

? Step 5: Issue DD139 (+10 days)

? Step 6: Follow-up on DD139 (dispersing officer) (+45 days)

? Step 7: Write-off (after 6 months)

 Steps 2-6 above will be handled by dunning levels in SAP.



Configuration before dunning can be carried out


  1. Defining Dunning Area

2.       Define Dunning Keys

3.       Define Dunning Block Reasons

4.       Dunning Procedure

?          Define Dunning Procedure (T. Code ? FBMP), To set up a Dunning Procedure, the following must be specified: number of Dunning Levels (1-9) Dunning Texts, Standard Text can also be included in the Dunning Texts. Dunning Procedure major parameters: Dunning Interval, Number of Dunning Levels, Grace Period

  1. Assign Dunning Procedure to Customer / Vendors Accounts (T. Code ? XD02)
  2. Define Correspondence Types (T. Code ? OB77)

7.       Assign Company Codes to Correspondence company Codes

8.       Assign Programs for Correspondence Types (OB78)

9.   Dunning Run: Transaction Code: F150

Menu Path: accounting > financial accounting > accounts receivable > periodic processing > dunning.

Note: Whenever you schedule more than one dunning run a day, the "Identification" number must change. You may run several dunning runs on the same date but the "Identification" name must be different as well as certain parameters such as the ?Dunning Date? and ?Documents Posted up to? date.





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  • Dec 18th, 2006

dunning is nothing but remainder to the customer or vendor.When you customize dunning you have to create dunning area like at what level you want to use the dunning,like business area level or company code level. Afer that you have to make settings for dunning procedure, in that you have to define no of due dates and no of dunning levels. there are maximum 9 levels are there.

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  • Mar 5th, 2008

Dunning is nothing but a letter  which reminds Customers about their Outstandings.

We issue system defined letter forms to the customers.

And we issue dunning letters to Vendors also if we pay advance to vendors and vendor did not supply the material up to yet.

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  • Jul 25th, 2017

If we have 1000s of customers, how we can identify which are eligible for dunning process to run (which customer is in over due)

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