Dunning Procedures Configuration in SAP

Dunning procedures in SAP determine how the customers and vendors are dunned. For a complete dunning procedure configuration, you need to define the number of dunning levels, frequency, dunning charges, and assignment.

You can define the dunning procedure in SAP by using the following navigation method

  • SPRO > IMG > Financial Accounting (new) > Account receivable and Account payable > Business transactions > Dunning > Dunning procedure > Define Dunning Procedures.
  • Transaction code: FBMP

Step 1: Execute transaction code FBMP or follow the menu path and execute “Define Dunning Procedures”

 

Define dunning procedure path

Step 2: Click on “New procedure” to define the new dunning procedure

Maintain dunning procedure

Enter the following data.

  • Dunning procedure: Enter any four code
  • Name: Dunning procedure for customers
  • Dunning interval in days: 7 (You can maintain a maximum 9)
  • Number of dunning levels: 4
  • Line item grace period: 3 days
  • Interest indicator: Update the appropriate interest calculation indicator
  • Activate the standard transaction dunning check box.

Maintain dunning procedure overview

Press two times enter the key and ignore the warning message

Step 3: Select the Dunning texts button

Dunninf texts button

Update company code and select the customer radio button.

Dunninf texts entries

Select new company code button and update company code and press enter.

Maintain dunning procedure company code data

Select separate notice per dunning level check box.

separate notice per dunning level

Go back (F3) and select the Yes button for the message to save the date.

Step 4: Click on dunning levels button  and select check box always dun for all the four levels.

Always Dun

Step 5: Select charges button (F6) and update the currency key.

charges

On the “Maintain Dunning Procedure: charges” screen, maintain dunning level and dunning charges

Maintain Dunning Procedure charges

Select dunning texts and update the Form that Specifies which is to be displayed for the dunning level.

dunning forms

Go back (F3), ignore the warning message and click on the save button to save the configured data.

Step 6: Assign dunning procedure in customer master

Accounting > Financial accounting > Accounts receivable > Master records > Maintain centrally > Change

Transaction code: XD02

Enter Customer code and company code

customer dunning procedure assign

Select company code data and then select the correspondence tab

Update dunning procedure key to assign dunning procedure for customers master data

Assign dunning procedure in customer master

After assigning, click on the save button to save the data in SAP.