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 5. Assign Dunning Procedure to Customer / Vendors Accounts (T. Code – XD02) 6. 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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