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Steps For Issuing Dunning Letter To Customer

The document outlines 10 steps for issuing dunning letters to customers with overdue payments, including making reminder calls, checking accounts after various due dates, and issuing up to 3 dunning letters followed by a legal letter if payment is not made after 55 days along with penalty charges. It also describes how companies can customize their dunning process by defining the levels, due dates, and number of reminder letters. The sample dunning letter provided notifies a customer that their payment of Rs. 831765 is 17 days overdue and requests payment along with a Rs. 100 penalty charge.

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Anamika Pandey
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387 views4 pages

Steps For Issuing Dunning Letter To Customer

The document outlines 10 steps for issuing dunning letters to customers with overdue payments, including making reminder calls, checking accounts after various due dates, and issuing up to 3 dunning letters followed by a legal letter if payment is not made after 55 days along with penalty charges. It also describes how companies can customize their dunning process by defining the levels, due dates, and number of reminder letters. The sample dunning letter provided notifies a customer that their payment of Rs. 831765 is 17 days overdue and requests payment along with a Rs. 100 penalty charge.

Uploaded by

Anamika Pandey
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Steps for issuing Dunning letter to customer:

Step 1: A call to customer for reminding their debts and overdue payment

Step 2: Check customer account after due day (+14 days)

Step 3: If invoice free for dunning is not required then payment is received from the
customer.

Step 4: If invoice free for dunning is required then first dunning letter is issued to the
customer.

Step 5: After due day (+28 days) again check the customer account if invoice free for
dunning is not required then payment is received from the customer.

Step 6: If invoice free for dunning is required then second dunning letter is issued to the
customer.

Step 7: Again check the customer account after due day (45 days) if invoice free for dunning
is not required then payment is received from the customer.

Step 8: If invoice free for dunning is required then last dunning letter is issued to the
customer.

Step 9: Finally check the customer account after due day (55 days) if still payment is not
made by the customer then legal letter will be issue from the company.

Step 10: The collection process is done after 55 days with penalty charge.

When dunning is customize in business then dunning area is created like at what level
dunning is use, After that dunning procedure are set by the company, in that it is number of
due dates and number of dunning levels are define. There are maximum 9 levels.
DUNNING +14 DAYS AFTER DUE
DAY

NO PAYMEN CASH
INVOICE T
FREE FOR
DUNNING
?
YES

1ST DUNNING LETTER

28 DAYS AFTER DUE


DAY

NO
INVOICE
FREE FOR
DUNNING
?
YES

2ND DUNNING LETTER

45 DAYS AFTER DUE


DAY

NO
INVOICE
FREE FOR
DUNNING
?
YE

LAST DUNNING LETTER

55 DAYS AFTER DUE COLLECTION


DAY PROCESS
E&H
MARCH 2011
DATE:-24

LTD.
ADDRESS:-

A12 HAMILTON HOUSE

CONNAUGHT PLACE

NEW DELHI

CUSTOMER NAME AND ADDRESS:-

R. K. ENTERPRISE

46 MG ROAD

AMRITSAR, PUNJAB

ATTENTION:- PAYMENT DUE

*****FIRST NOTICE****

This is a reminder that your amount balance is more than 14 days overdue. Please submit
payment for all overdue items as listed below.

If you have any questions , contact MANISH , Sales Executive at 011-26503192.

S.NO. DUE DAYS ORDER P.O. AMOUNT


LATE
DUE

1. 24 MARCH2011 17 SO4380 0834 831765.00

Amount paid:- Rs. 831765.00

Amount due:- Rs. 831765.00

Penalty Charge:- Rs. 100.00

Total amount :- Rs. 831765.00

We appriciate your efforts in bringing the account current.

Your business is very important for us!


Thankyou

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