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Dunning Rules Screen

Last Updated: Wed Jul 07 2021

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 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 unique name 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. (determined using 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.

Individual levels can be disabled if desired by unchecking the ‘Active’ checkbox next to the level.

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.


Guides

Adding Dunning Rules

  1. Under the Dunning Rules heading on the left click the (emoji) icon

  2. Under the Add Dunning Rule heading on the right specify a Name, if the rule is Active and if desired a Minimum Overdue Amount value

  3. To Add Levels click the + Add button on the Levels tab

  4. The Add Level pop-up will appear, populate the fields as desired

    • Event: used in combination with the 'Days' field to indicate when the action should be triggered

      • Prior Due Date: trigger the action X days before the invoice due date

      • On Due Date: trigger the action if the invoice due date has been reached

      • Post Due Date: trigger the action X days after the invoice due date has been reached

    • Days: enter the number of days before or after the invoice due date that you want the action to trigger on. Days is not selectable if you choose the 'On Due Date' setting

    • Action: the action you want to occur when the level is applied. Stock actions are listed below

      • Apply Late Fee (Fixed): this option allows you to define fixed amount, currency specific late fees for any currencies configured on the owner. A Penalty Service will need to be selected in order to associate the fee to a service and determine how the charge is applied (e.g. the service selected can be configured as tax exempted if required). The penalty service name can also be reflected on invoices, web portals, reports, etc. depending on your configuration

      • Apply Late Fee (Percent): this option allows you to define percentage based, currency specific late fees for any currencies configured on the owner. The percentage fee specified will be applied against the invoice balance amount (e.g. 1.5%). A Penalty Service will need to be selected in order to associate the fee to a service and determine how the charge is applied (e.g. the service selected can be configured as tax exempted if required). The penalty service name can also be reflected on invoices, web portals, reports, etc. depending on your configuration

      • Send Notification: this option will email the account billing contact when the level is executed. An 'Email Template' field will appear when selecting this option, allowing you to choose a preconfigured email message to be sent (e.g. payment overdue 1st notice, payment overdue final notice, etc.)

      • Change Account Status: this option permits you to switch an account's status when the specified level is executed. A 'Status' field will appear when this option is selected allowing you to choose from the list of account statuses you have setup (e.g. suspended, disabled, etc.). To configure or view account statuses see status types. Account statuses with a back-end status of 'Canceled' will not appear in this list as 'Canceled' status accounts cannot be reactivated

  5. Click Add to add the Level to the dunning rule

  6. Click Save to create the new dunning rule when you have finished adding levels


Editing Dunning Rules

  1. Under the Dunning Rules heading on the left click the dunning rule you wish to edit

  2. Under the Edit Dunning Rule heading on the right modify the dunning rule details. See the Dunning Rules screen help for details on the available fields and settings

  3. If you wish to edit the levels under a dunning rule click the (emoji) icon

  4. Edit the level settings as desired

  5. Click Save to save your changes


Deleting Dunning Rules

Note: Dunning rules that are configured on AR terms cannot be deleted. If you need to delete a dunning rule that is in use load the 'References' tab to see where the dunning rule is in use and change the AR terms using it to instead use an alternate dunning rule. Once a dunning rule is no longer in use by an AR term it can be deleted.

  1. Under the Dunning Rules heading on the left select the rule you wish to delete

  2. Under the same Dunning Rule heading on the left click the (emoji) icon

  3. On the confirmation dialog that appears select Yes

Deleting Levels

  1. If you only wish to delete a level under a rule, edit the rule and next to the Level you wish to delete select the (emoji) icon

  2. Next select the (emoji) icon that appears and the level will be marked for deletion, or removed outright if the level has not yet been saved

  3. Select Save to delete the levels that you have marked for deletion