Dunning
A document to be sent as a persistent demand for debt payment.
Dunning is a document designed to store and send persistent demands for debt payment related to an unpaid Sales Invoice.
To access the Dunning list, go to:
Home > Accounting > Dunning
1. Prerequisites
- Sales InvoiceA Dunning can only be created against an overdue Sales Invoice.
- Dunning TypeA Dunning Type is used to pre-fill interest, fees and text blocks in a new Dunning.
2. How to create a Dunning
A Dunning is generated for a list of scheduled payments that are overdue. There are two different methods to create a dunning:
a) Create a new Dunning
- Go to the Dunning list and click on “Add Dunning”.
- Select a Customer and click “Fetch Overdue Payments”. This will show a list of overdue Sales Invoices for this customer. Select the ones you would like to fetch into this Dunning and click on “Get Items”.
b) Create a Dunning from an overdue Sales Invoice
- Go to the Sales Invoice list and open any overdue Sales Invoice.
- Click on “Create > Dunning”. This will fetch all overdue payments from the invoice’s payment schedule table into a new Dunning.
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2.1 What is a Dunning Type
The Dunning Type stores default values for dunning fees, interest rates, and text blocks to be included. For instance, a Dunning Type labeled “First Notice” typically does not entail any fees, while a Dunning Type named “Second Notice” may involve dunning fees and interest charged on the outstanding amount.
2.2 Statuses
These are the statuses that are auto assigned to Dunning.
3. Payment
Upon receiving a full payment, inclusive of interest and fees, kindly access the unresolved Dunning and select “Create > Payment”. This action will generate a Payment Entry against the outstanding scheduled payments, recording the interest and fees as “Payment Deductions or Loss”. The Payment Entry will automatically update the Dunning‘s status to resolved.