When the customer misses the payment for the outstanding invoices within specified payment due date. The dunning letter is generated via dunning program and send at customer address for reminding the customer outstanding payment. Dunning procedure then used to control how dunning is carried out by the system. The dunning procedure determines the dunning intervals and the number of dunning levels.
The individual dunning areas can use different procedures or the same dunning procedure. The dunning areas with the required dunning procedure are to be entered into customer if using different dunning procedures.