dunning key

what is the use of eunning key in dunning

regards'
sravya

 sravya sravya
December 24, 2007 at 03:33 AM
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prasad A replied
November 24, 2007 at 14:13 PM
Definition : dunning key used to prevent the
customer that should not trigger the higher
dunning level
Generally Dunning is used to send the dunning
letter to customers who have outstanding dues.
for various reasons if you don't want to send the
dunning letter to particular customer we will use
dunning block,
if you are already run the dunning program in two
dunning levels , if you want to stop the dunning
letter in Third dunning level we will use the
dunning key.
this dunning key can used in any dunning level.
CHANDRA(prasad)
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sdn.sap Kumar replied
December 24, 2007 at 03:33 AM
hi gurus
where we can define and assign dunning keys?
amk

SAP FI Dunning Procedure for Customer

Outstanding Invoices
May 3, 2013 | 10,930 Views |

Julie (PHAN THI THU HUONG)

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FIN (Finance)
 accountaccounting;dunning;fireceivable

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I. INTRODUCTION
Purpose:
When the customer misses the payment for the
outstanding invoice within specified payment due
date. The dunning letter is generated via sap
program and send at customer address for
reminding the customer outstanding payment
Requirement:
The dunning system enables to trace liable
customers who have not paid their open invoices
within a given time span. It enables you to handle
the process from, for example, sending a reminder
to customers of their outstanding payments
through to referring such customers to collections
agencies.
The dunning system covers the following
documents:
1. Open A/R invoices, including invoices that are
partially credited or partially paid
2. Invoices that include installments
3. A/R credit memos
4. Incoming payments that are not based on
invoices
II. CONFIGURATION:
1. Create Dunning Keys
We define dunning keys in this step. Dunning keys
limits the dunning level of an item.

Define Dunning Keys

Define your dunning keys in this step. With the dunning keys, you can limit the dunning level of an item.
Define either instead of or in addition to the dunning key whether the items with a dunning key are to be
displayed separately in the dunning letter.

Activities

Define your dunning keys.

Path: IMG > Financial Accounting (New) >

Account Receivable and Account Payable >
Business Transactions > Dunning > Basic Setting
for Dunning > Define Dunning Keys
Tcode: N/A

2. Define Block reason for Dunning Notices

In this step, we define the reasons for a dunning
block under a key. The key can be entered in an
item or in the account of a Customer master.
Blocked items or accounts are not considered for
the dunning run

Path: IMG > Financial Accounting (New) >

Account Receivable and Account Payable >
Business Transactions > Dunning > Basic Setting
for Dunning > Define Dunning Block Reasons
Tcode: N/A

3. Define Dunning Procedures

We can create Dunning text, Dunning level,
Dunning Charges and Company code assignment
in the dunning procedure
Path: IMG > Financial Accounting (New) >
Account Receivable and Account Payable >
Business Transactions > Dunning > Dunning
Procedure > Define Dunning Procedure
Tcode: FBMP
4. Create Dunning Interval in days to Dunning
Procedures
We determine at which intervals the allocated
accounts are to be dunned for every dunning
procedure. During every dunning run, the system
then checks whether the run date is at least this
number of days (14 days) since the date of the last
dunning run.
Path: IMG > Financial Accounting (New) >
Account Receivable and Account Payable >
Business Transactions > Dunning > Dunning
Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure and click “Choose”
Button
5. Define  Dunning Levels to Dunning
Procedures
In this step, we determine number of dunning level
set up in dunning procedure.
Path: IMG > Financial Accounting (New) >
Account Receivable and Account Payable >
Business Transactions > Dunning > Dunning
Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure and click “Choose”
Button
6. Define  Dunning Charges to Dunning
Procedures
In this step we add the dunning charge as per the
dunning level. This is like an administration charge
to dun the customer. Currency Euro is assigned
during adding the dunning charge
Path: IMG > Financial Accounting (New) >
Account Receivable and Account Payable >
Business Transactions > Dunning > Dunning
Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure, click “Choose”
Button, and choose “Charges” button
7. Define Minimum Amounts to Dunning
Procedures
Minimum Amount are customized to charge the
administration charge to customer with reference
to dunning level
Path: IMG > Financial Accounting (New) >
Account Receivable and Account Payable >
Business Transactions > Dunning > Dunning
Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure, click “Choose”
Button, and choose “Minimum amounts” button
+
8. Assign  Dunning Texts and forms  to
Dunning Procedures
For inserting dunning forms, click Dunning Texts
and assign the required forms for the dunning text
with reference to dunning Level. In case the
customer has different language and the form
contains different language, then please follow the
document attached to translate the source
language to target language.
Path: IMG > Financial Accounting (New) >
Account Receivable and Account Payable >
Business Transactions > Dunning > Dunning
Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure, click “Choose”
Button, and choose “Dunning Texts” button
9. Define Dunning level  to Dunning
Procedures
Click the dunning levels and input days in Arrears
for each dunning levels.
Select Always Dun in legal dunning proc for not
missing any dunning notices.
Path: IMG > Financial Accounting (New) >
Account Receivable and Account Payable >
Business Transactions > Dunning > Dunning
Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure, click “Choose”
Button, and choose “Dunning Levels” button
10. Assign Special indicator to Dunning
Procedures
In this step, we have assigned Special Indicator
Reserve for Bad Debt to dunning Procedure.
Path: IMG > Financial Accounting (New) >
Account Receivable and Account Payable >
Business Transactions > Dunning > Dunning
Procedure > Define Dunning Procedure
Tcode: FBMP
Choose the Dunning procedure, click “Choose”
Button, and choose “Sp. GL indicator” button
11. Assign Company Code to Dunning
Procedures
We have assigned company code with reference
to Dunning Level and not by Dunning area
Path: N/A
Tcode: OBVU

12. Assign Sort Fields to Dunning Procedures

In this step, we assign Sort field K1 and Sort field
P1 to Company code.
K1 will control the header content and P1 will
control line item while printing the contents
Path: N/A
Tcode: OBVU

III. PREPARATION OF CUSTOMER MASTER

DATA FOR DUNNING PROCEDURES:
1. In this step, we insert Dunning procedures in the
customer master (Correspondence tab).
2. We have to maintain the Language field in the
customer master data (Address tab) to print the
Dunning Notice as per there language, Dunning
Text should also be maintained in reference to
dunning level. So that the content of dunning
notice will be different to dunning level.
3. For dunning run, this transaction should be
performed by F150. This is a month end duty.
Please insert Dunning date, Document posted up
to date, Company code, Customer Number and
save
a. In case we will specify the checks that are to
be maintained by user before starting dunning
the customer
– Dunning procedure should be maintained in
customer master
– Verify in Customer master regarding Dunning
block (Customer can’t be dunned if there is
dunning block in customer master as well as line
item)
– Verify in transaction FBL5N the customer Invoice
should be overdue and Amount should be in debit
balance and not in credit
– User should make sure the parameters are
inserted correctly for Dunning date, Customer
Number, Company code and Document posted till
date
– Correct Printer should be inserted while printing
the dunning notice
b. Dunning test for Credit Memo and Down
payment
– Credit Memo
In the dunning run, we can offset existing credit
notes with outstanding invoices. This affects the
determination of the due date for payment and the
dunning level. These are different for customer
and vendor credit memos.
The dunning program assumes that credit memos
are always due on the baseline date, unless they
have been given a specific due date or are
invoice-related. This means that credit memo
dunning is not affected if you enter only one
payment term manually in a line item.
For invoice-related credit memos, the dunning
level is taken from the invoice, provided this is
contained in the dunning proposal. All other credit
memos due are assigned to the highest dunning
level determined so far for the account they belong
to. This means that these credit memos are
cleared with the oldest invoices.
– Down payment
We can take down payments into consideration
during the dunning run. When defining the dunning
procedure we must specify which down payment
types are included in the dunning run. To do this,
we specify the special G/L indicators for these
down payment types. The dunning program treats
a down payment received as a credit memo and
reduces the receivables by the amount of the
down payment. Since down payments are only
included in the dunning run in exceptional cases,
each down payment item contains a field for the
dunning block. The system sets this block
automatically. The down payment also contains a
due date field, which the system automatically fills
with the document date. You can change these
fields with the document change function.
III. EXAMPLE DUNNING LETTER: (German
language)