Steps for issuing Dunning letter to customer
5
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.
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Transcript of Steps for issuing Dunning letter to customer
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
28 DAYS AFTER DUE DAY
COLLECTION PROCESS
CASH
INVOICE FREE FOR DUNNING
?
1ST DUNNING LETTER
INVOICE FREE FOR DUNNING
?
2ND DUNNING LETTER
45 DAYS AFTER DUE DAY
INVOICE FREE FOR DUNNING
?
LAST DUNNING LETTER
55 DAYS AFTER DUE DAY
PAYMENT
NO
YES
NO
YES
NO
YES
DATE:-24 MARCH 2011
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 LATE
ORDER P.O. AMOUNT
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
E&H LTD.
