Dunning
Definition
Dunning is the automated business process of evaluating overdue customer liabilities, dispatching escalated notification correspondence, and natively assessing punitive financial charges.
Business Purpose and Architecture
When a utility is owed money, they must execute collection paths. Architecturally, Dunning sits inside FI-CA. When the general Dunning batch runs, it evaluates aged items. Crucially, SAP Utilities can be configured to execute Dunning during the standard Invoicing process. When the Item Selection flags a drastically overdue balance on a Contract Account, Invoicing instantly evaluates the Dunning procedure, physically assessing a brand new penalty charge (like a $5 Late Fee) directly onto the bill currently being printed.