What is the differences between Credit Mngmt v/s Dunning?
 
Dunning is one part of credit management.
 
But need not be also.
 
I will give you two examples:
 
1. For a customer, the credit functionality is enabled means credit limit etc. are set for this customer.
 
If the customer didn't pay the amount even after the period specified in the payment terms is over then in that case we are going to generate the dunning letters and send them to the customer either by simple mail, fax, intimation by call or personally etc., like this different ways of reaching a customer.
 
But here in dunning also there are different levels.
 
2. Suppose for a customer there is no credit limit set. Credit functionality is not there for this customer.
 
In this case, if the customer didn't pay the amount even after the period specified in the payment terms is over then in that case we are going to generate the dunning letters and send them to the customer either by simple mail, fax, intimation by call or personally etc. like this different ways of reaching a customer.
 
So, Dunning is partly a part of credit management.
 
 
What do you meant by Dunning?
 
Dunning is the process of sending the remainders to the customer about the payment which is due and crossed the limit. This dunning is used in the credit management to check the credit worthiness of the customer.
 
Sometimes your business partners may fall behind on payments. You can send them a payment reminder or a dunning notice to remind them of their outstanding debts.
 
The SAP System allows you to dun business partners automatically. The system duns the open items from business partner accounts in which the overdue items create a debit balance. The dunning program selects the overdue open items, determines the dunning level of the account in question, and creates a dunning notice. It then saves the dunning data determined for the items and accounts affected.
 
You can use the dunning program to dun both customers and vendors. It may be necessary to dun a vendor if he or she has a debit balance as a result of a credit memo. If a customer is also a vendor, you can offset the account balances against one another.

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