Dunning procedure in Vendor master

Question

Why do we create Dunning procedure in Vendor master.. cud u pls advise..?
Txk
Umesh

Answer 1

3.3.3.4.1.2     Dunning Procedure
3.3.3.4.1.2.1     Defining Dunning Procedures
     Use
You enter the settings that control the dunning program by:
1.     Specifying the company codes to include in dunning.
2.     Setting up the dunning procedure you want to use (dunning interval, grace periods for the due date determination and number of dunning levels)
3.     Setting the dunning charges.
4.     Specifying the net payment due date at which a particular dunning level is reached.
5.     Specifying the dunning notice you want to send to your customers.
The following dunning procedures have been defined for dunning customers:
0001     Four-level dunning notice, every two weeks
Z030     Interest calculation after 30 days
The dunning procedure Z030 specifies that customers who do not pay within 30 days are automatically in arrears. The customers receive a dunning notice without interest amounts. From then on, interest is calculated for the open items using the interest calculation program (see also the section on the interest calculation program).
Procedure
1.     Access the activity using one of the following navigation option:
Transaction code     SPRO
IMG menu     Financial Accounting (NEW) ® Accounts Receivable/
Accounts Payable ® Business Transactions ® Dunning ® Dunning Procedure ® Define Dunning Procedures
2.     Choose New procedure.
3.     Make the following entries:
Field name     Entry
Dunn.Procedure     0001
Name     Four-level dunning notice, every two weeks
Dunning Interval in Days     014
No.of dunning levels     4
Total due items from dunning level
       3
Min.days in arrears (acct)
     6
Line item grace periods
     2
Public hol.cal.ID
     08
Interest indicator
     01
Standard transaction dunning     X
Ref.Dunning Procedure for Texts     0001
4.     Choose Dunning Levels.
5.     Maintain the following entries:
Field name     Dunning level 1     Dunning level 2     Dunning level 3     Dunning level 4
Days in arrears     2     16     30     44
Calculate interest               X     X
Always dun                    X
Print all items               X     X
Payment deadline               10     7
6.     Choose Charges, enter currency EUR and make the following entries:
Field name     Dunning level 1     Dunning level 2     Dunning level 3     Dunning level 4
Dunn.charge     5     5     10     10
7.     Choose Minimum Amounts, enter currency EUR and make the following entries:
Field name     Dunning level 1     Dunning level 2     Dunning level 3     Dunning level 4
Minimum amount     1     2     5     10
Min.amt for interest     1     5     10     10
8.     Choose Dunning Texts, enter company code BP01 and choose account type customer. Make the following entries:
Field     Dunning level 1     Dunning level 2     Dunning level 3     Dunning level 4
Form     Z_F150_DUNN_01     Z_F150_DUNN_01     Z_F150_DUNN_02     Z_F150_DUNN_02
9.     Choose Save.
10.     Choose Back and maintain the next dunning procedure.
11.     Choose New procedure.
12.     Make the following entries:
Field name     Entry
Dunn.Procedure     Z030
Name     Interest Calculation after 30 days
Dunning Interval in Days     014
No.of dunning levels     2
Public hol.cal.ID
     08
Interest indicator
     01
Standard transaction dunning     X
Ref.Dunning Procedure for Texts     Z030
13.     Choose Dunning Levels.
14.      Maintain the following entries:
Field name     Dunning level 1     Dunning level 2
Days in arrears          14
Calculate interest     X     X
Print all items     X     X
Payment deadline     7
15.      Choose Dunning Texts, enter company code BP01 and choose account type customer.
16.      Make the following entries:
Field name     Dunning level 1     Dunning level 2
Form     Z_F150_DUNN_04     Z_F150_DUNN_04
17.      Choose Save.
3.3.3.4.1.2.2     Defining Dunning Procedures
     Use
In this activity you enter the settings that control the dunning program.
     Procedure
1.     Access the activity using one of the following navigation option:
Transaction code     SPRO
IMG menu     Financial Accounting (NEW) ® Accounts Receivable/
Accounts Payable ® Business Transactions ® Dunning ® Dunning Procedure ® Define Dunning Procedures
2.     Choose the menu Environment ® Company Code Data and make the following entries:
Company Code     Dunning by Area     Separate Dunn. Notice     Ref. Comp. Code      Sort. Variant Acct     Sort. Variant Items     Dunn. Comp. code
BP01               BP01     K1     P1     BP01
3.3.3.4.1.2.3     Defining Interest Rates
     Use
In the dunning program, an interest rate of 7.68% has been defined for interest indicator 01 and the currency EUR. This interest rate is the same as the rate set for the interest calculation program and is calculated from the discount rate (2.68%) and a surcharge of 5%.
     Procedure
1.     Access the activity using one of the following navigation option:
Transaction code     SPRO
IMG menu     Financial Accounting (NEW) ® Accounts Receivable/
Accounts Payable ® Business Transactions ® Dunning ® Dunning Procedure ® Define Interest Rates
2.     Make the following entries:
Interest Indicator     Currency     Valid from     Debit Interest     Credit Interest
01          01.01.1991     7.680     7.680
01     PHP     01.01.1991     7.680     7.680
3.3.3.4.2     Printout
3.3.3.4.2.1     Defining Sender Details for Dunning Forms
     Use
In this activity, you define which standard texts are used for the header, the footer, and the sender address in the letter window for each company code.
     Procedure
1.     Access the activity using one of the following navigation option:
Transaction code     SPRO
IMG menu     Financial Accounting (NEW) ® Accounts Receivable/
Accounts Payable ® Business Transactions ® Dunning ® Printout ® Define Sender Details for Dunning Forms
2.     Make the following entries:
Dunning Area     Text ID     Header Text     Footer Text     Signature Text     Sender
     ADRS     ADRS_HEADER     ADRS_FOOTER     ADRS_SIGNATURE     ADRS_SENDER
3.3.3.4.2.2     Allowing Dunning with SAP script Forms
     Use
You have the possibility to use either SAP script forms or Smart Forms in the dunning procedure. In this transaction you have to specify which forms are used for dunning in this system.
This table is cross-client. Any changes you make in this table will take effect in all clients of your system.
     Prerequisites
You have processed the previous mentioned steps.
     Procedure
1.     Access the activity using one of the following navigation options:
Transaction code     BF31
IMG menu     Financial Accounting (NEW)  Financial Accounting Global Settings (New)  Tools  Customer Enhancements  Business Transaction Events  Settings  P/S Function Modules  u2026 of an SAP appl.
2.     On the Change View Publish & Subscribe BTE: SAP Enhancement: Overview screen, check - and if necessary change - the following entries:
Field name     Description     User action and values     Notes
Event     Event (Business Transaction Event)     00001720     this entry already exists
Country     Ctr (Country ISO Code)     Blank     
Appl.     Appl. (Application Indicator for BTE)     FI-FI     
Funct     Function Module     FI_PRINT_DUNNING_NOTICE     this function module needs to be entered if SAPSCRIPT forms should be used
3.     Choose Save.
If you want to use Smart Forms then you have to enter for above mentioned event 00001720 function module FI_PRINT_DUNNING_NOTICE_SMARTF. Please be aware that in installation guide and configuration guide the set up for customizing is only made for dunning with SAP script forms and not for dunning with Smart Forms.