Dunning Letters In SAP
Dunning in SAP is the process to send reminders to business partners from whom payments are due. SAP allows the messages which are sent to range from simple reminders to strong messages indicating legal action. SAP makes use of payment terms to identify the credit period that is offered to a particular customer and subsequently the line items for which the payments are due. The Dunning process picks up these items and sends a message to the concerned business partner reminding about the due payment.
The Dunning program makes use of the Dunning areas to identify the entities for which the Dunning is to be carried out. It is not necessary to carry out Dunning for a company code. Dunning can be carried out for a smaller entity within a company code like a sales organization. The Dunning program also allows the Dunning charges to be imposed to customers who have delayed the payments. Interest calculation is possible in the Dunning program for the payments which have been delayed.