To Set Up the Dunning Process
You configure dunning process settings on the Dunning tab of the Accounts Receivable Preferences (AR101000) form.
Before You Proceed
If you plan to charge a dunning fee, you need to create a non-stock item (or use an existing one) that will provide an account and a subaccount (if applicable) to register the collected fee, and a tax category. For details on non-stock items, see Non-Stock Item: Implementation Activity.
To Configure Dunning Process Settings
- Open the Accounts Receivable Preferences (AR101000) form.
- In the Dunning Process box on the
Dunning tab, select how the system prepares dunning
letters. The following options are available:
- By Customer: Select this option if you want the system to prepare dunning letters by grouping overdue documents by customer account. When you select this option, the system selects the Automatically Release Dunning Letters check box and sets it as read-only.
- By Document: Select this option if you want the system to prepare dunning letters by grouping overdue documents by customer and by document dunning level.
- Optional: In the Terms box, select the payment terms that the system will insert into all dunning fee invoices generated during the creation of dunning letters. Leave this box blank if you want the system to use the payment terms configured for the customer specified in the invoice.
- Optional: Select the Automatically Release Dunning Fee Documents check box if you want the system to automatically release dunning letters after preparation is completed. In this case, you will not be able to edit the list of overdue documents or delete the letter draft. The box is available for editing if the By Document option was selected in the Dunning Process box.
- Select the Add Coming-Due Invoices check box if you want the system to automatically include documents that are not yet overdue in the list of due documents in a dunning letter. This check box state determines the default state of the Add Coming-Due Invoices check box on the Prepare Dunning Letters (AR521000) form, but you can override or maintain the default state any time you prepare dunning letters.
- Select the Add Open Payments and Credit Memos check box if you want the system to automatically include open payments and credit memos in the list of due documents in a dunning letter. This check box state determines the default value of the Add Open Payments and Credit Memos check box on the Prepare Dunning Letters form, but you can override or maintain the default state any time you prepare dunning letters.
- Optional: If you want to collect a fee for each dunning letter you send (with the amount specified for each level), in the Inventory ID box, specify a non-stock item configured for this purpose.
- Optional: Select the Automatically Release Dunning Fee Documents check box if you want the system to automatically release an invoice for the applicable dunning fee when the corresponding dunning letter is released.
- For each level you need, in the table, do the following:
- Add a row. The added row is filled with default values. The Dunning Letter Level column is read-only.
- In the Days Past Due column, type the number of days to be used for comparison with the number of days the invoice is past its due date.
- In the Days to Settle column, type the number of days that will be added to the letter date to calculate the deadline date for the payment. The payment deadline date is included in the Dunning Letter (AR661000) report.
- In the Description column, type the description of this level.
- Optional: In the Dunning Fee column, type the amount of the fee that will be assessed for this level. If you specify a dunning fee for any row, make sure that the non-stock item is specified; see Step 5.
- On the form toolbar, click Save.