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Dunning Rules

Last Updated: Aug 19, 2020

Dunning Rules are configured in Setup / Finance / Dunning Process / Dunning Rules

Overview

Dunning rules allow you to define the events which are triggered when account invoices become overdue. Available options include sending emails, applying fees and changing account statuses. Dunning rules execute during bill runs, but only if the 'Run Dunning Process' setting is enabled on the bill run.

For a dunning rule to apply the rule must be active and configured on one or more AR Terms. AR Terms are selected when creating an account in order to specify the payment terms and dunning rules that apply to an account.

Prerequisites

  • To configure levels on dunning rules you must have at least one active service with a service type base type of 'Fee' setup

  • To configure notification actions on levels you must have at least one email template setup

Dunning Rules Panel

The Dunning Rules panel on the left of this screen allows you to select existing rules to view and edit on the Edit Dunning Rule panel to the right. Actions are also available in this panel which are shown as icons above the Filter text box. The available actions are described below.

Actions

Icon

Description

Deletes the selected dunning rule. Dunning rules that are in use (configured on AR Terms) cannot be deleted

Adds a new dunning rule

When you select a dunning rule in the list additional details will be displayed in the Edit Dunning Rule panel to the right. These details are explained below.

Edit Dunning Rules Panel

The information in this panel reflects the currently selected dunning rule. From here you can change the rule configuration (fields will display a red left border if a value is required and purple text if the field is read-only and cannot be modified).

Dunning Rule Fields and Options:

  • Name: a label for the dunning rule. This could be used to describe how the rule is configured and/or indicate which accounts the rule applies to (e.g. 'Corporate')

  • Active: enables/disables the rule. If this option is disabled the dunning rule in question will not be an available option in the Dunning Rule dropdown field on the AR Terms screen

  • Minimum Overdue Amount: specifies a value which must be exceeded before the actions defined under Levels are executed. E.g. do not send emails or apply fees if the overdue balance does not exceed fifty dollars/euros/etc. (uses the owner's default currency)

Levels tab

Levels allow you to execute actions based the approaching, reached or overdue invoice due date. For example you can warn an account's billing contact that their invoice is due in 10 days, due today or overdue. Setting up multiple levels permits you to apply a series of actions as invoices become due or overdue. E.g. email an overdue notice and apply a late fee 5 days past the due date, send a second notice at 10 days overdue and finally suspend the account at 20 days overdue.

References tab

This section displays where the selected dunning rule is in use. By default the reference data is displayed in a summary format, however the Entity drop down field can be used to view the exact entities that the rule is configured on.