Best Practice: Dunning Setup

To help tracking and claiming outstanding payments, JustOn supports dunning processes.

Dunning process concepts

Basically, the dunning process involves three main steps:

  • Dunning run: You create draft dunnings for open invoices or account statements.
  • Finalizing: You close the dunnings and generate the dunning reminder PDF documents.
  • Distribution: You send out the dunning reminders via email.

The dunning run refers to the operation that creates dunning notifications. The statements issued with the dunning run are referred to as dunnings. Depending on the progress of the dunning process, they can have different statuses.

  • Draft: New dunnings have the status Draft. You can check draft dunnings for correctness and edit them as necessary.
  • Closed: Finalizing dunnings sets them to Closed, generates the PDF dunning reminders to be sent out, and adds the defined dunning fees to the account balance and the open invoice amount. As a whole, this makes the dunning operation legally effective.

In order to use the dunning process feature, you must configure it accordingly using the custom setting Dunning Levels. This setting defines, among others,

  • the condition to be matched for activating the process,
  • dunning fees and late fees as required,
  • the due period and a grace period.

Using multiple dunning levels, you can build your individual dunning escalation scenario, which may progress from friendly reminders to firm warning letters.

Once set up, you can then start a dunning run using the Statement Runs functionality.

Assume the following example dunning escalation scenario:

Invoice payment due
Failure to payment: First reminder
      Failure to first reminder: Second reminder
           Failure to second reminder: Final reminder

(1) You set up invoices due to be paid within 14 days after their date of issue.

(2) If your customer has failed to pay within the payment due period, you issue the first reminder (a friendly reminder about the outstanding payment), setting a dunning due of 14 days.

(3) If the customer has failed to pay within the dunning due period, you issue the second reminder (a firm reminder of the overdue amount 28 days after the original invoice due), setting another dunning due of 14 days.

(4) If the customer has failed again to pay within the (new) dunning due period, you issue the final reminder (a last request to pay 42 days after the original invoice due), adding a late payment charge of 5%.

To implement this scenario, you need three Dunning Levels settings.

Dunning Levels Information

The required Dunning Levels settings specify the following information:

Field Level 1 Value Level 2 Value Level 3 Value
Name First Reminder Second Reminder Final Reminder
Dunning Level 1 2 3
Grace Period 14 28 42
Dunning Due 14 14 14
Late Fee Rate 5%
Condition DaysOverdue__c >= :gracePeriod AND DunningLevel__c = 1 DaysOverdue__c >= :gracePeriod AND DunningLevel__c = 2
Include Standard Condition

Creating Dunning Levels Settings

You create an individual Dunning Levels record for each level of your dunning escalation scenario.

  1. In Setup, open Custom Settings.

    In Salesforce Lightning, navigate to Custom Code > Custom Settings.

    In Salesforce Classic, navigate to Develop > Custom Settings.

  2. Click Manage in the row of Dunning Levels.

  3. Click New.
  4. Specify the details as necessary.

    The mandatory information include Name and Dunning Level.

    For more details, see Dunning Levels Information.

  5. Click Save.

    This creates the dunning level configuration, making it immediately available for dunning runs or individual dunning reminders.

Related information:

Customizing Dunning Reminders
How to exclude accounts or invoices from the dunning run?
Managing Dunning Reminders