In sap fico what is the definition of dunning?

In SAP FICO, dunning refers to the process of systematically communicating with customers to ensure the collection of accounts receivable. It involves sending reminders or dunning notices to customers who have overdue invoices or outstanding balances. The dunning process is configured in SAP to follow a specific schedule and set of rules, including the frequency and intensity of reminders, which can escalate from gentle reminders to more assertive demands for payment. Dunning levels are defined to categorize the severity of the overdue situation, and each level triggers a different type of communication. This structured approach helps businesses manage their receivables efficiently and maintain healthy cash flow by ensuring timely payments from customers.

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