NetSuite Dunning Letter
What is a Dunning Letter?
Dunning letter is a notification delivered to customers stating that their account receivable payment is overdue. Dunning letters will typically be progressing from polite reminders to frequent demands, following the responsiveness of the respective customer. Additionally, the tone of the letter states the amount due, the date of the unpaid invoice, the number of the invoice, and any late payment fines or interest penalties.
Dunning Letter or a Statement?
A dunning letter is not a month-end statement. A statement is sent to all customers having unpaid invoices by the end of the month. It includes all invoices that have yet to receive payment, although they are still not due. Statement is still considered a collection tool nonetheless, since it may result in customer inquiries about invoices that they do not have in their records, and which they therefore would not have paid.
Dunning Letter in NetSuite
Deciding on whether to use customer dunning, invoice dunning or invoice group level dunning
In SuiteApp, The Dunning Letter escalation points defined by The Dunning Level. It helps to group the type of dunning notification that fits your organization and set the time that must elapse before a dunning letter is sent to a customer. Dunning Level defines the thresholds for sending notices for overdue amounts and days overdue, as well as the letter templates to use for each level.
In Customer Level Dunning, the letter is sent with all overdue invoices of the customer attached. Non-overdue invoices are also attached to the dunning letter if they meet any one of the dunning level criteria. Customer level dunning is the recommended standard way to use the Dunning Letters SuiteApp.
In Invoice Level Dunning, dunning letter will reach a customer with only one invoice. Use invoice level dunning only if you want to treat one or more invoices of a customer according to different rules or using a different template.
In Invoice Group Level Dunning, the letter is sent to customers for invoices that are part of invoice groups. Use invoice group level dunning only for invoices that are grouped.
Defining dunning escalation levels (thresholds for overdue amounts and days overdue)
To set up an automated dunning process, the user must create dunning procedures and assign them to customers, invoices, or invoice groups.
Dunning procedures define the escalation points or dunning levels, and the time that must elapse before a dunning letter is sent to a customer. Dunning levels define the thresholds for overdue amounts and days overdue, as well as the letter templates to use for each level.
Dunning Letter Formats
On a dunning procedure record, each dunning level that you add must be associated with a dunning letter template record. The dunning template record is where you add template files for your dunning letters.
The type of template you create depends on your customers’ preferences for receiving dunning letters. Create email templates for letters to be sent by email, and PDF templates for letters to be printed. Either in e-mail or PDF templates, the dunning letter can be provided in a single language, or several template files in various languages.
Which Roles can Customise Dunning Letters?
The following roles can use the dunning features:
Dunning Director (default role based on the standard Accountant role)
Dunning Manager (default role based on the standard A/R Clerk role)
The default Dunning Director and Dunning Manager roles are included in the Dunning Letters SuiteApp that can access only the assigned employee’s subsidiary.
For example, if you are using the default Dunning Director role, dunning procedures that you create can only be assigned to your subsidiary. However, you can create various sets of dunning procedures for each subsidiary.
Customized roles can also use dunning if they have been granted the required permissions and access to the dunning pages.
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