Dunning

Dunning finds all invoices that need a reminder and creates the reminders as PDFs – with an email to the customer if you wish. You'll find it under Finance → Dunning.

#Before you start

• The owner, Administration and Accounting may send reminders (permission Post payments, match bank statements, send reminders and record supplier invoices). For viewing, View financial data is enough.
• Check the settings once under Finance → Settings → Dunning.
• Match the payments first (Payment matching) so that nobody gets a reminder for an invoice that has been paid.

#Dunning groups

A dunning group bundles its own dunning levels, grace period and fees – for example Private customers, Business customers or Public authorities. Out of the box there is the Default group with three levels. allverto decides which group applies to a customer in this order:

1. Dunning group set directly on the customer (in the dunning proposal via right-click → Customer's dunning group …; Automatic (customer group, customer type, default) removes it again)
2. Dunning group of their Customer group
3. Dunning group of their Customer type (private customers B2C, business customers B2B)
4. the Default group

For each group you also set:

• Default interest for: by customer type, always consumer (base rate + 5 points) or always business (base rate + 9 points).
• Own grace period – otherwise the general one applies.
• Collective reminder per customer as the default for the dunning run.

A group without levels never sends reminders – handy for customers with a special arrangement.

#Dunning levels

For each group you create any number of levels, e.g. payment reminder, 1st reminder, 2nd reminder, final reminder and handover to debt collection. Out of the box:

For each level you set: Due after (days) counted from the due date or the previous level, Dunning fee, Default interest (none, statutory or fixed rate), New payment deadline, Print template, Email template, Subject and Text. With the Collection handover switch, the invoice is marked as handed over to debt collection when this level is created. You change the order via right-click → Move up or Move down.

#Grace period

The grace period is a buffer for payments that are already on their way. Levels counted from the due date only apply after grace period + days of the level. Example: grace period 5 days, payment reminder 7 days after due date → the reminder comes 12 days after the due date at the earliest. You set the general grace period and the Minimum amount for reminders under General.

#Default interest and base rate

allverto calculates statutory interest to the day: base rate + 5 points (consumers) or + 9 points (businesses) from the day after the due date. Partial payments reduce the amount bearing interest from their payment date. The Deutsche Bundesbank publishes the base rate on 1 January and 1 July – enter new values under Base rate with Valid from.

#Placeholders in subject and text

All amounts are in the currency of the invoice – an invoice for $500 is dunned as "USD 500.00", in text, subject and PDF. You maintain the stage's dunning fee in euros; for invoices in a foreign currency allverto converts it at the invoice rate. The minimum amount for reminders also applies in euros: the open amount is compared at the invoice rate.

#Step by step: dunning run

1. Open Finance → Dunning. At the top are the Dunning proposals: all invoices whose next level has been reached – with Dunning group, Next level, Fee, Interest and Total. Partly paid invoices show the amount already paid.
2. Select the invoices you want to send reminders for (Ctrl+A selects all) and click Dunning run (…) … – or via right-click Create reminder … or Dunning run for … invoices ….
3. Choose Collective reminder per customer – As dunning group, Yes or No, per invoice – and whether the reminders should be sent to customers via Send by email.
4. Click Create reminders (with email: … and send). The reminders appear under Created reminders with PDF, and the run is listed under Dunning runs.

With a collective reminder, all due invoices of a customer (same company, same currency) are in one reminder: the level is the highest level of the invoices, the dunning fee is charged once, interest per invoice. Each invoice moves up to its own next level.

You can send a single reminder later via Send by email … – you can adjust the Email address when doing so.

#Scheduled dunning run

With an automation, dunning runs by itself: trigger Scheduled, object Document, conditions Document type is invoice and Overdue, action Create reminder (optionally with email). Switch off Each object only once so that an invoice also gets the following levels. The Daily dunning run template is set up this way. The Reminder created trigger starts your own rules, e.g. a notification at the debt collection level.

#Handover to debt collection

Invoices that reach a level with Collection handover are listed under Debt collection and no longer receive reminders. Select them and click Export handover (CSV) – the file contains invoice, customer with address, open amount, dunning fees, interest and claim for the debt collection agency. If the customer has paid after all or the agency declines, withdraw the handover via right-click → Withdraw handover ….

#Dunning blocks

Invoices or customers with a dunning block don't appear in the dunning proposal. You set a block in Open items via right-click → Set dunning block. All active blocks are listed in Dunning under Dunning blocks; that's also where you lift them.

#Frequently asked questions

#Why isn't an overdue invoice in the proposal?

Possible reasons: it is still within the grace period, the deadline of the next level hasn't been reached yet, the open amount is below the minimum amount, there is a dunning block or dunning stop, the payment method has no dunning, the invoice is with debt collection, or the last level of its dunning group has already been reached. How many overdue invoices are currently waiting is shown above the dunning proposal.

#How is default interest calculated?

For each day since the due date: open amount on that day × interest rate ÷ 365, added up and rounded commercially – only for levels with interest. With a fixed rate, the level's rate applies; with statutory interest, the base rate of the day plus 5 or 9 points.