SAP Financial Accounting (SAP FI) Practice Exam

What is the main piece of configuration behind dunning?

1. Account types

2. The dunning procedure

3. Invoicing schedule

4. Fiscal periods

The correct answer is: The dunning procedure

The dunning procedure is the core component of the dunning process in SAP Financial Accounting. It defines how overdue accounts are handled in terms of reminders for payment. This procedure specifies the rules for how reminders are generated based on factors like the aging of receivables, the customer account status, and the level of dunning required. Each dunning procedure can include various settings such as the frequency of reminders, the type of communication (letter or email), and the escalation steps (such as moving from a friendly reminder to more serious notices). By configuring the dunning procedure, businesses can automate and streamline the collections process effectively, ensuring that overdue amounts are pursued in a structured manner. In contrast, account types, invoicing schedules, and fiscal periods serve different purposes within the broader context of financial accounting and management. Account types categorize customer accounts but do not directly influence the dunning strategy. Invoicing schedules relate to the timing and frequency of billing customers but do not affect how overdue payments are managed. Fiscal periods help in reporting and financial closing but do not play a role in the dunning process itself. Thus, the dunning procedure stands out as the main element specifically dedicated to managing overdue payments.