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Dunning letters

Overview

Dunning letters are formal notifications sent to a customer of their past due payments. They are used as a reminder to the customer of their owed amount, and can be set up to charge late fees against the customer, which are included in the collection.

Dynamics 365 allows companies to define a Dunning letter sequence, so that multiple collection letters can be sent for a single overdue payment, each with their own predefined late fees, grace period and letter format.

Setup

Dunning letter codes:

Dunning letter 1-4:

Fee in currency: This is a fixed amount which is added to the outstanding customer balance when the dunning letter is sent.

Main account: If applying a fee to the dunning letter, the main account the fee is posted to must be specified here.

Item VAT group: Select a VAT group if a tax amount must be calculated on the fee.

Days: If this is populated against the first dunning letter in the sequence, it will be the number of days after the due date that the dunning letter will be generated. If populated against a subsequent dunning letter, it will be the number of days after the previous dunning letter is generated.

Block: If this field is enabled then it will prevent the customer from receiving additional deliveries and invoices.

Additional Information
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