Dunning Process in SAP Banking.

Dunning Process in SAP Banking

The default process for Loans in arrears is supported by the dunning process in SAP system.
The dunning process is based on the dunning procedures. The dunning procedure is the collection of business rules defined for each contract account depending on the product type.

Frequently in all organization the business rules are mostly same based on Numbers of Days in Arrears verses Minimum Amount due as Open item. Here, if it’s Minimum Amount due is $100 as open item for 7 days in Arrears then Dunning Level, letter and workflow generated. However in FCC the rule is 3 months versus $500 due open items. So generally business rules are same however just days and amount changes and that’s called Dunning Procedure.

The dunning procedure is the central control attribute for the dunning process flow and defines the procedure for situations where a loan is in arrears. A dunning procedure consists of individual dunning levels and it is determined by the number of days in arrears reached by the due open items.

Each dunning level contains the business rules according to the amount of days in arrears. Each dunning level will contain the set of activities and recovery measures, which could be triggered automatically by the dunning run.

Dunning levels control the dunning process flow and describe the individual processing steps of a dunning procedure. Both the individual items in a dunning letter and the dunning letter itself, which corresponds to the dunning level of the oldest open item, have a dunning level. Depending on the dunning procedure, a dunning activity can contain items with different dunning levels. The dunning level of the dunning activity is usually the highest dunning level for the items contained in the dunning notice.