Dunning Type
Overview
Dunning Type – Business Overview
Dunning Type is used to define how your organization follows up on overdue customer payments. It helps standardize the tone, timing, and seriousness of payment reminders sent to customers when invoices remain unpaid. By setting up different dunning types, businesses can manage collections in a structured, professional, and escalating manner.
Purpose in Business Operations
The Dunning Type document allows your finance or accounts team to classify different levels of payment follow‑ups, such as: - Friendly payment reminders - Formal overdue notices - Final demand or legal warning notices
Each dunning type represents a stage in your collections strategy, ensuring that customers are contacted appropriately based on how overdue their payments are.
Prerequisites and Setup Requirements
Before using Dunning Type, businesses should: - Have a clear credit and collections policy in place - Define acceptable payment terms and due dates for customers - Agree internally on how many reminder stages are required and when they should be triggered - Align sales, finance, and customer service teams on escalation rules
This preparation ensures dunning communication remains consistent and aligned with company policy.
Typical Workflow and Process Fit
- A customer invoice becomes overdue.
- Based on how long the payment is outstanding, the system identifies the applicable Dunning Type.
- The corresponding reminder or notice is issued to the customer.
- If payment is still not received, the process moves to the next, more serious dunning type.
- The cycle continues until payment is received or the case is escalated further.
This structured approach helps businesses maintain cash flow while preserving customer relationships.
Key Business Scenarios Where It Is Essential
- High-volume invoicing businesses needing automated and consistent payment reminders
- Credit-based sales models where customers pay after delivery or service completion
- B2B environments with negotiated payment terms and multiple reminder stages
- Organizations aiming to reduce bad debts without immediate legal action
In these scenarios, Dunning Type ensures overdue payments are addressed promptly and professionally.
Important Considerations for Users
- Choose wording and severity carefully to balance firmness with customer goodwill
- Ensure dunning stages align with local laws and contractual agreements
- Avoid over-communicating, which may frustrate customers
- Regularly review dunning effectiveness and adjust types as needed
- Coordinate with sales or account managers for high-value or sensitive customers
Dunning Type plays a critical role in maintaining healthy cash flow, enforcing payment discipline, and supporting a structured, fair collections process across the organization.
Basic Information
- Module: Accounts
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| dunning_type | Dunning Type | Data | ✓ | - | Name identifying the dunning category used in Dafater |
| is_default | Is Default | Check | - | Marks this dunning type as default for Dafater processes | |
| company | Company | Link | ✓ | Company | Company for which this dunning type applies in Dafater |
| dunning_fee | Dunning Fee | Currency | - | Fixed fee charged to customers during dunning in Dafater | |
| rateofinterest | Rate of Interest (%) Yearly | Float | - | Annual interest rate applied on overdue amounts in Dafater | |
| dunninglettertext | dunninglettertext | Table | Dunning Letter Text | Configurable reminder letter content linked to this dunning type | |
| income_account | Income Account | Link | Account | Income account to record dunning fees in Dafater | |
| cost_center | Cost Center | Link | Cost Center | Cost center associated with dunning revenue tracking in Dafater |
Child Tables
dunninglettertext (Dunning Letter Text)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| language | Language | Link | Language | Select language for the dunning letter text in Dafater. | |
| isdefaultlanguage | Is Default Language | Check | - | Mark this language as default for dunning letters in Dafater. | |
| body_text | Body Text | Text Editor | - | Main dunning message content sent to customers from Dafater. | |
| closing_text | Closing Text | Text Editor | - | Standard closing message appended to dunning letters in Dafater. | |
| bodyandclosingtexthelp | Body and Closing Text Help | HTML | Body Text and Closing Text Example, , ... |
Guidelines and examples for writing dunning templates in Dafater. |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ | ||
| Administrator | ✓ | ✓ | ✓ | ✓ | ||
| Accounts Manager | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Dunning | Linked from | Accounts |
| Account | Links to | Accounts |
| Company | Links to | Setup |
| Cost Center | Links to | Accounts |