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Dunning Rules Configuration Example

Last Updated: Oct 28, 2020

Summary

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.

In this example a dunning rule will be created which will apply a late fee on the account when the invoice is overdue for more than one day and when the Minimum Overdue Amount is greater than '1'.

For additional details on the fields presented on the dunning rules screen see the Dunning Rules screen help article.

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

Sample Configuration

Adding a Dunning rule

  1. Log into the LogiSense Billing application

  2. Click on the Setup menu, Finance and then Dunning Process

  3. Click on the Dunning Rules tab in the upper right

  4. Under the Dunning Rules heading click the (emoji) button to add a dunning rule

  5. Under the Add Dunning Rule heading give the dunning rule a Name (e.g. 'Consumer')

    1. Check the Active checkbox to enable the dunning rule

    2. Specify Minimum Overdue Amount as 1

  6. Load the Levels tab and click the + Add to add a level to the dunning rule

    1. Enter the Event value as Post Due Date

    2. Enter Days as 1

    3. Enter the Action as Apply Late Fee (Fixed)

    4. Add the Fee of for each currency

    5. Select the penalty service (note: this list will only show services that are setup with a service type of ‘Fee’)

    6. Click on Add to add the level to the dunning rule

  7. Click on Save to add the new dunning rule

Result

Once the dunning rule is created it can be configured on Accounts Receivable Terms which apply to accounts.

Setup / Finance / Dunning Process / AR Terms

Account / Settings / Billing

The AR Term will be configurable when creating accounts or modifying existing account settings (shown in the image below).

Running billing on an account configured with the 30AR term set above will generate a charge if the invoice has a balance greater than $1.00 and an overdue value greater than one day.

Bill Run Configured to ‘Run Dunning Process’

The bill run below is set to cover the date of the ‘dunning’ account's next billing period. The Run Dunning Process option is checked so that dunning rules attached to the AR term are executed. The bill run must include the account’s Bill Group under the Bill Run’s Bill Group tab to bill the account.

When the bill run has completed the dunning rule action will be triggered and the late payment fee will appear as a transaction on the account (shown below).

Account / Billing / Transactions

Next Steps