RisingERP - Dunning

Dunning

Dunning is a document designed for the persistent pursuit of debt payment against an overdue Sales Invoice.

To access the Dunning list, navigate to:

Home > Accounting > Dunning

1. Prerequisites:

1. Sales Invoice:
2. A Dunning can only be created against an overdue Sales Invoice.
3. Dunning Type:
4. A Dunning Type is utilized to pre-fill interest, fees, and text blocks in a new Dunning.

2. How to create a Dunning:

A Dunning is generated against a list of overdue scheduled payments. There are two methods to create a Dunning:

a) Create a new Dunning:

1. Go to the Dunning list and click on "Add Dunning".
2. Select a Customer and click "Fetch Overdue Payments." This will display 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:

1. Go to the Sales Invoice list and open any overdue Sales Invoice.
2. Click on "Create > Dunning." This action will fetch all overdue payments from the invoice's payment schedule table into a new Dunning.

Fill the remaining fields:

1. Select a Dunning Type to pre-fill interest, dunning fees, and text blocks with predetermined values. Alternatively, these values can be set manually.
2. Set an income Account (e.g., "Other interest and similar income") and Cost Center for the income generated from interest and dunning fees. These will be utilized once a Payment Entry is created from this Dunning.
3. Save and submit the Dunning before sending it to the Customer.

2.1 Dunning Type:

A Dunning Type stores default values for dunning fees, interest rates, and text blocks to be included. For instance, a Dunning Type "First Notice" may not have any fees, while Dunning Type "Second Notice" might include a dunning fee and interest charged on the outstanding amount.

2.2 Statuses: These are the statuses auto-assigned to Dunning.

1. Draft: Saved but yet to be submitted.
2. Unresolved: Submitted, but no payments have been received.
3. Resolved: The Dunning is resolved when the outstanding payment has been received.
4. Cancelled: A cancelled status indicates a cancelled Dunning document.

3. Payment:

When you receive a full payment, including interest and fees, open the unresolved Dunning and click on "Create > Payment." This will generate a Payment Entry against the outstanding scheduled payments and record the interest and fees as "Payment Deductions or Loss." The Payment Entry will automatically set the Dunning's status to resolved.