Preparing Dunning Letters

Before the system can begin issuing dunning letters, you must specify the various types, and thresholds, that can be assigned to different invoices.

  1. On the Dunning Groups form, specify this information:
    Group
    A unique identifier for the dunning group
    Description
    The description of the dunning group
    Due Date By
    Specifies whether the due date is based on the invoice date, or the invoice due date.
    Method
    Specify Dunning Date to cause the Days Incremented field to represent the number of days that must pass from the dunning due date before the next dunning stage is triggered. Specify Staged to cause the Days Incremented field to represent the number of days that must pass from the dunning stage before the next dunning stage is triggered.
    Threshold
    Specify the total receivable amount that mush be owed before the initial dunning letter is triggered.
  2. Open the Accounts Receivable Parameters form.
  3. On the Report Templates tab, specify the dunning group that will be applied to invoices by default.
  4. Open the Dunning Schedules form.
  5. Select a dunning group.
  6. In the Schedule table, specify this information:
    Stage
    Each dunning group has one stage by default. Create additional stages to enable different dunning letters for different thresholds.
    Days Incremented
    Specify the days that must pass before the stage is triggered. Depending on what you specified in the Method field, this could mean the number of days since the dunning due date, or since the previous dunning stage.
  7. (optional) Modify the order of stages by using the up and down arrow buttons next to the Schedule table.
  8. In the Fields table, use the different rows to specify different sections of text in the dunning letter.
  9. In the Fees table, specify this information:
    Fee Threshold Amount
    the minimum amount money in arrears that must be reached before a fee is applied to the customer.
    Type
    whether the fee is a fixed amount, or a percentage of the invoice.
    Amount
    the fixed fee amount, or the percentage, that will be charged.
    Fee Threshold Increment Amount
    the next threshold that will trigger an increase in the fee.
    Increment Amount
    the amount that the fee increases by when each dunning stage is triggered, and is only enabled if the Type is Amount.
    Maximum Fee
    the maximum possible dunning fee that can be applied to customers in the selected dunning group.
  10. Save the record and exit the form.
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