Dunning levels

Dunning levels

Reminder levels define the escalation ladder of receivables management - from the first friendly notice to the clear final request.

Why this point is crucial for key users

Good dunning levels combine automation with sensitivity. They give users security and at the same time ensure that every customer is treated comprehensibly.

Fields and settings at a glance

• Dunning level: Consecutive number; is managed by the system.
• Info: Internal, understandable name of the level, e.g. 1. Reminder.
• Reminder text: Formatted text that is output in the dunning document.
• Grace days: Additional days from due date before this tier takes effect. The grace days for the first reminder level are calculated from the due date of the invoice.

For all further reminder levels, the calculation of the grace days begins from the reminder date of the previous reminder.

• Fee: Fixed amount charged for the dunning level.
• Interest %: Percentage default interest for the calculation.

How to prepare for the process safely

1. Articulate the purpose and tone of each stage.
2. Maintain text, grace days, fee and interest.
3. Check the order using specific due date examples.
4. Create a test document and have it technically approved.

Check before sharing

• The escalation is consistent in time and language.
• Amounts and percentages are calculated correctly.
• The output text contains all the necessary information.

What your team gets out of it

Individual overdue items become a professionally managed, customer-comprehensible process.

Related topics

1. For key users – understand and prepare processes › Finance › Prepare dunning
2. For key users – understand and prepare processes › Finance › Check data

Frequently asked questions