How many dunning levels are there

For the first dunning level for example, you can define a text that merely reminds a customer of their outstanding debts. For the second dunning level, you define a text with a more insistent tone. For each dunning procedure, you must define at least one dunning level. The maximum number of dunning levels permitted is nine.

Invoice 30 1 2 15 Letter 2 Invoice is assigned to the next dunning level Level 2 and is printed on Letter 2 since it has been 15 days since its previous dunning correspondence date and this exceeds the Minimum Days between staged dunning for level 2 10 days.

Invoice 45 2 3 15 Letter 3 Invoice 15 1 Letter 1 Invoice is assigned to dunning level 1 and is printed on Letter 1 since it has been 15 days since its due date and that meets the Minimum Days between staged dunning for level 1 15 days. Invoice is assigned to dunning level 3 and is printed on Letter 3, since it has been 15 days since its previous dunning correspondence date and that exceeds the Minimum Days between staged dunning for level 3 5 days.

Invoice 60 3 4 15 Letter 3 Invoice 30 1 2 15 Letter 2 Invoice is assigned to dunning level 2 and is printed on Letter 2 since it has been 15 days since its previous dunning correspondence date and that exceeds the Minimum Days between staged dunning for level 2 10 days.

Invoice is assigned to dunning level 4 and is printed again on Letter 3, since it has been 15 days since its previous dunning correspondence date and that exceeds the Minimum Days between staged dunning for level 4 5 days. One day after the dunning submission on May 15, the customer calls and promises to resolve Invoice in 15 days.

You agree to lower the dunning level for that item to 0 so it will not be selected for dunning the next time you submit the dunning letter generate program. Note: You can modify the dunning level for an item in the Dunning History window. See: Viewing Dunning History. Invoice 75 0 0 15 None Invoice 45 2 3 15 Letter 3 Invoice 15 1 Letter 1 Invoice is assigned to dunning level 1 because it has been 15 days since its due date and that meets the Minimum Days between staged dunning for level 1 15 days.

Invoice is assigned to dunning level 3 because it has been 15 days since its previous dunning correspondence date and that exceeds the Minimum days between staged dunning for level 3 5 days.

You had promised money to your creditors assuming that your customers would pay promptly and that is not happening. This is a Domino effect commencing with your customers which you are forced to pass on to your vendors That is not one bit good!!!!. You must do something to prevent recurrence of such an uncomfortable situation!

What are the corrective measures which you intend to take? As a first step, you need to identify which of your customers have not paid their dues promptly.

You need to remind each one of such customers about the non-payment and insist that the dues are settled immediately. This is done through letter correspondences indicating break up of dues owed by the customers.

Some deaf customers who do not heed your letters need to be reminded often that is periodically , each time the letter sounding a little sterner than the earlier one. The second optional step would be to levy penal charges for the defaulted payment in the following manner: 1. Levy of incidental charges incurred with regard to dunning the process of dunning is going to cost you by way of follow up,dunning and printing costs, maintenance of additonal records,additional labor incurred by way of wages to dunning clerks etc Customers who are tone deaf even after repeated reminders would be handled through a legal process.

This is the process of dunning. Generally, each time you dun a customer you are crossing one level of dunning. Though you can dun upto a maximum of nine times , you would normally resort to legal help after dunning three or four times, at the most.

The number of dunning levels you need can be configured and theoretically it ranges from 0 to 9 levels 0 if your company is run by an inefficient management which does not bother to collect money on time and 9 if your management is too liberal with your customers!