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Chapter 15
Defining the Dunning Procedure
and Correspondence
This chapter explains what dunning is and covers the basic settings involved in customizing the dunning
procedure. It also explains what correspondence is and the steps involved in defining correspondence types.
At the end of this chapter, you will be able to:
Dunning
• Define a dunning area
• Define the dunning procedures
• Specify special G/L transactions that allow the system to dun special G/L
transactions
• Define correspondence types
• Assign programs for correspondence types
• Define sender details for correspondence forms
• Determine call-up functions
It is normal business practice for business partners to fall behind when paying invoices. A customer may
forget that an invoice is outstanding and need to be reminded to pay. SAP ERP provides a procedure referred
to as a dunning notice. Dunning is the automatic process of sending notices to business partners based
on defined criteria about overdue invoices or outstanding debt. The dunning program ensures that the
mechanism for sending reminders is in place.
The program looks at business partners’ accounts to determine which open items are overdue and
at what level and generates the appropriate dunning notices. The dunning program can be used to dun
customers and vendors.
The next section explores the steps involved in customizing dunning in SAP.
Define the Dunning Area
The SAP system comes with a basic setting that you can use to customize the dunning area for your dunning
program. The predefined setting is typically sufficient, so you do not need to customize the dunning area. You
can access the dunning area using this menu path: IMG: Financial Accounting (New) ➤ Account Receivable and
Accounts Payable ➤ Business Transaction ➤ Dunning ➤ Basic Settings for Dunning ➤ Define Dunning Area.
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