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Dunning Procedure in SAP

Updated May 18, 2018

What is DUNNING?

Dunning is a Germany word which means a “ remainder to the party”.

Sometimes your business partner may fall behind payments. Then you can send them a payment remainder or a dunning notice to remind them about their outstanding debts

You can use the dunning program to dun both the customers and vendors. It may be necessary to dun the vendors if they has a debit balance as result of credit memo

If a customer is also a vendor we can offset the account balances against one another. Dunning program selects the overdue open items, determines the dunning level of the account and creates a dunning notice

The SAP system allows you to use either the automatic dunning program, which duns all overdue items in accordance with your selection criteria or if received you can dun individual customers or vendors

There are some attributes to control the dunning program and these attributes are configured according to the needs of the company

These attributes are:

  • Dunning procedure
  • Dunning level
  • Dunning areas

Dunning Procedure

A predefine procedure specifying how customers or vendors are dunned. For each procedure, the user defines

  • Dunning frequency
  • Text for the dunning notice
  • Number of dunning levels

Dunning Level:

SAP has given totally 9 levels. The number of levels we use depends upon the client requirement

Dunning Areas:

Dunning area represents an organizational entity that is responsible for dunning.

Dunning Configuration

  • Define dunning area(OB61)
  • Define dunning procedure (FBMP)
  • Assign dunning procedure in customer master (XD02)
  • Sales posting(F-22)
  • Dunning(F150)

Define dunning area(OB61)

Here you define dunning area (dunning area is optional)

Define dunning procedure (FBMP)

In this activity you enter the settings that control the dunning program

  • Setting dunning procedure which determines the dunning interval, grace periods and number of dunning levels
  • Setting the dunning charges
  • Setting the dunning notice
  • Assign dunning procedure in customer master (XD02) 

Here we need to assign the dunning procedure to the party for whom we want to run dunning.

Dunning (F150)

  • Run date and identification.
  • Parameters(dun date,doc posted upto,customer,cocod)
  • Schedule the dunning run (start immediately)
  • Schedule dunning notice printout (output device name)
  • Dunning history(account type, co code)
  • Display dunning notice (Print preview)

Run Date

It is the date on which the program is to carried out as planned. It is also possible to run the program at earlier or later date


This is used to distinguish between several runs with the same reconciliation date

Dunning Date:

Dunning date has two functions:

  • It is the issue date of the dunning notice
  • It is also basis for calculating the days in arrears

Documents Posted Upto

Only items which have been posted up to this date r included in the processing

Interest Calculation

Interest can be calculated on General ledger account, vendor and customer in two ways

  • Account balance interest calculation (S type)
  • Item interest calculation (P type)

Interest Indicator

Interest indicator is a key for allocation of interest terms for respective accounts.We will assign an interest indicator to the master records of the customer, vendor and general ledger accounts for which we want to calculate the interest.

  • Interest calculation is controlled by the settings made in the interest indicator
  • Interest is calculated using debit interest rate defined for the interest indicator.
  • Credit interest are used when interest is being calculated on items paid prior to due date.

Interest Calculation Process

  • Identification of items on which the interest is to be calculated
  • Number of days for which the interest is to be calculated
  • Converting into local currency
  • Correspondence


  • Define interest calculation type(OB46)
  • Prepare account balance interest calculations (OBAA)
  • Define reference interest rates (OBAC)
  • Define time dependent terms(OB81)
  • Enter interest rates(OB83)
  • Creation of GL accounts(FS00)
  • Assignment of accounts for automatic postings(OBV2)
  • Postings(F-02)
  • Interest calculation run (F.52)

Define Interest Calculation Type(OB46)

In this step you need to define the interest indicator and specify that it is used for account balance interest calculations or item interest calculations .

Prepare Account Balance Interest Calculations (OBAA)

Here , for the above defined interest indicator you need to give specifications like interest cal frequency, settlement day ,calendar type ,output control etc

Define Reference Interest Rates (OBAC)

In this activity, you define your reference interest rates by entering a key and a name.

Define Time dependent Terms (OB81)

In this activity, you specify how the interest rate is to be determined for each interest indicator. You can make this specification dependent on currency and a validity date. You specify a condition(term) for each entry which determines which interest type it is (debit or credit interest).

Enter Interest Rates (OB83)

In this activity, you specify the required interest rates, dependent on the date for the reference interest rates.

Creation of GL masters(FS00)

(term loan a/c, interest a/c)
The master record of an account must contain an interest indicator so that it is taken into consideration during interest calculation 

Assignment of Accounts for Automatic Postings(OBV2)

In this activity you define the specifications for posting interest calculated on G/L account balances.

Assign accounts in full to the account symbols for the respective interest earned posting or interest paid posting. For the balance sheet account posting, a generic entry is possible.


(term loan receipt, term loan repayment)

Interest Calculation Run (F.52)

Here you need to give your chart of accounts, GL accounts, company code and calculation period to specify the limits within which interest is to be calculated.


  • 17 Nov 2009 7:08 am Guest
    Very clearly explained the concept of Dunning and provided steps to setup the same in SAP.

    Very good input for new learner.

    Thanks & regards,