Dunning levels (SAP Business One)

Dunning levels in SAP Business One are predefined escalation levels within the framework of the Dunning. You determine the form and intensity with which reminders are sent to customers for outstanding receivables. The aim is to promote incoming payments and avoid payment defaults through graduated measures.

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System specifications

SAP Business One provides Ten fixed dunning levels available.
The number of levels is limited by the system and cannot be extended.

Configuration of the dunning levels

The definition is made under Administration > Definitions > Business partner > Dunning levels.
The following fields can be configured for each dunning level:

Letter format: Selection of a layout for the Reminder letter from a value list. The content can be customised using the layout designer.
Effective after (days): Specification of the number of days after the due date or after a prior reminder from when the stage becomes active.
Fee per reminder: Determination of an additional reminder fee, which is added to the claim.
Minimum balance: Minimum amount of the outstanding claim from which a reminder is issued.
Interest: Can be optionally activated if interest on arrears is to be calculated and shown from this dunning level onwards.

Connection with dunning conditions

Dunning levels form the basis for Dunning termsthat can be assigned to individual business partners.
When a dunning condition is created, the dunning levels are adopted, whereby individual adjustments are permitted.
If a customer has received several reminders, the Highest layout of the applicable dunning level.

Use in the dunning run

At Dunning run you can select which dunning levels are to be taken into account.
in the Reminder history report can be used to recognise which dunning level a customer is currently in.

Goal and benefits

Dunning levels enable a systematic and comprehensible escalation in the Receivables management.
The gradual adjustment of tone, fees and measures increases the impact of the reminder and supports the consistent enforcement of outstanding receivables.