The dunning process helps you keep track of overdue payments and manage outstanding receivables efficiently. With automated payment reminders and dunning levels, you can professionally remind your customers of due amounts without manually following up on each case. This ensures that your cash flow remains stable and your receivables management stays transparent.
Each accounting department also includes the management of the dunning process. Xentral supports you extensively in this. The dunning system regularly calculates the payment status of all invoices in the system. This is done automatically via the process starter or manually at any time with the action "Recalculate dunning" action. For all overdue accounts payment reminders will be prepared. After a check by your accountant, all payment reminders to delinquent customers can be sent to the customer's on "Start reminder system" to the customer's e-mail address.If no e-mail address is found for the customer, the payment reminder will be will be printed instead.
If an invoice is still due after the payment reminder period, the next time the reminder is started, the first reminder is sent (reminder 1). If the invoice remains open after the next deadline, the second reminder is sent, and so on. In addition, invoices can be called up directly via the action menu on the right or the document can be displayed as a PDF. It is also possible to cancel the invoice, to book differences as a cash discount, to book the invoice as a loss or to block the invoice in the dunning process. An important working basis for accounting is also provided by the OPOS list. It shows all open invoices and their due (partial) amounts. Invoices that are not yet due are displayed without dunning level. Invoices, that are due are displayed with the respective dunning level.
If invoices are not paid on time, it is possible to send a reminder in xentral via the dunning module. There are different dunning levels.
This module is particularly relevant if the invoices are managed via xentral.
The dunning system in xentral can be found under Accounting → Dunning.
Open invoices are automatically forwarded to the dunning system:
Advance payment methods after a definable payment deadline and for subsequent payment methods after the payment deadline has been reached.
An unpaid invoice passes through different dunning levels one after another. The requirements for advancing an invoice to the next dunning level are:
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The expiration of the predefined time since the last reminder/payment reminder
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The reminder/payment reminder of the previous stage has been sent (if mail dispatch is activated), or printed
The printout or sending of the various dunning documents by e-mail takes place automatically after clicking the "Start dunning" button in the "Accounting → Dunning" view. By starting the dunning process, the dunning documents for all invoices listed in the "Due" tab will be sent by mail to the customers in the invoices, according to their dunning level. For invoices in which no e-mail address is stored, a printout of the payment reminder is made at the connected printer instead. The reminder level of the reminded invoices increases, so that when the next deadline expires, the 1st reminder is then sent, then the 2nd reminder, and so on.
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E-mail dispatch and printout → The dunning documents are sent by e-mail or to a printer, depending on the settings. If a customer has not entered an e-mail address in the invoice (this is the basis for sending the e-mail), a printout is automatically sent to the printer
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Different billing address → Note that if the billing address is different, the e-mail address must be stored here so that an e-mail address is drawn in the billing document. The master data address is not sufficient in this case. An e-mail address must also be maintained for the different billing address
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Monitor e-mail outbox → The e-mail outbox log provides the e-mail outboxes in the logistics, automatic processes and also from the dunning system. Here the last sent reminders can be monitored. A copy@xxx.xx e-mail address can be stored here, so that the dispatch of the e-mail can be checked from xentral
The overview shows all invoices that have not yet been paid in full, i.e. are still open. It contains the following tabs in the dunning process:
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Due → All invoices that are in one of the dunning levels and for which a dunning document will be printed or sent the next time you click on "Start dunning"
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Payment reminders → All invoices in the "Payment reminder" stage
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Reminders → All invoices in the levels Reminder 1 to Reminder 3
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Collection → All invoices in the "Collection" stage
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Blocked → All invoices that have been manually blocked for further processing in dunning
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Receivables losses → All invoices that were manually marked as receivables losses
Before a dunning run is started, the "Printer" selection field can be used to specify the printer on which the dunning documents are printed for which mail dispatch has not been activated.
The invoice copy and the actual dunning document (payment reminder or reminder) are sent by e-mail. The dunning process can be influenced or stopped by the user for the individual invoices at any time. This is done via the icons presented below in the list view.
The following actions are available for the individual invoices in the dunning process:
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- Edit invoice → jump to the edit view of the invoice
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- PDF of the current dunning level → View the dunning document as PDF
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- PDF of the invoice → View the invoice as PDF
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- Cancellation of the invoice → Continue as credit/reversal invoice
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- Post difference (amount in "Missing" column) as cash discount
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- Recognize amount as loss on receivables
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- Block invoice for further processing in dunning (invoice is moved to "Blocked" tab)
The status of the document that has already been sent is always displayed in the invoice. I.e. if a reminder 1 has been created and sent in the dunning system, "Reminder 1" will be displayed in the invoice. If "Dunning 1" has not yet been sent, the invoice is still on payment reminder, although it is already listed in the dunning system under "Due" for the next dunning level.
In the open positions list, all open/partially paid invoices are displayed in the dunning process, regardless of the dunning level:
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Invoices that are not yet due are displayed without dunning level
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Invoices that are due are displayed with the respective dunning level
Column information:
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Invoice → Invoice number
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From → Date on which the invoice was issued
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Invoice due date → Date on which the invoice was originally due
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KD no. → Customer number
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Name → Customer name
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Amount → Amount of the invoice
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Is → Amount that has already been paid
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Missing → Amount that is still open
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Discount → Amount of the discount
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Project → Affiliation of the project
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Payment method → Type of payment
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Status → Dunning level, e.g. payment reminder, 1st reminder
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Sent on → Date when dunning document was last sent
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Next reminder → Due date of the next reminder level (this invoice is "due again on" or "due next time on")
The following can be filtered with the filter options:
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Without loss of receivables
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Without collection
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Without locked
In the dunning system itself, the invoices that are currently due accumulate. If your customer has paid in full, the entry no longer appears there.
The following entries can be found in the dunning system:
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All invoices in current due dunning levels
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Dunned and unpaid invoices that have recently been dunned and have not yet reached the next dunning level
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Losses on receivables (invoices marked as losses on receivables)
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Blocked invoices (actively blocked invoices)
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Collections (invoices that have reached the last dunning level "Collection")
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A "positive" customer balance, which is taken into account in the dunning process, does not currently exist. If there is an open credit for the same customer, but another invoice, this will not be taken into account.
Detailed information about the dunning settings can be found here.
In the "Settings" tab, the dunning periods between each dunning level can be set in days and the texts on the various dunning documents can be defined.
The dunning periods are defined in the "Settings" tab. There are 5 different dunning levels in xentral:
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Payment reminder
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Reminder 1
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Reminder 2
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Reminder 3
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Collection
For each dunning level can be defined:
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Days since last stage → Defines after how many days it will be activated after the previous dunning stage occurred
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Mail dispatch → Defines whether an e-mail with the dunning document is sent to the debtor when the dunning process is triggered (e-mail address must be available in the customer record). If this option is not activated, the dunning document will be printed when the dunning process is started
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Dunning fee → Starting from the level "Dunning 1", a dunning fee can be defined in each case, the dunning fees of the dunning levels do not add up.
Dunning level (dunning documents)
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Payment reminder → due date is fixed. This is always the calculated payment due date (e.g. for invoice 14 days, the due date for the payment reminder is on day 15)
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Payment reminder for prepayment and invoice payable immediately → Due date is specified in days for invoice payable "immediately" (corresponds to "0" days) or prepayment payment methods that are not automatically set to paid
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Payment reminder for direct debit (+collection date) → Due date of the payment method "Direct debit (or "behaves like direct debit"); the collection date in the invoice is added up. For example, if the collection period is X bank working days, this value can be set, then the direct debits usually do not appear in the dunning process (only if they were forgotten to be collected or if the collection did not work or there was a chargeback)
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Reminder 1 → due date is specified in days
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Reminder 2 → due date is specified in days
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Reminder 3 → due date is specified in days
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Collection → Due date is specified in days
If the "Display POS in table" is checked, items will be displayed on the dunning document, i.e. the item table will be displayed as on other documents.
Prepayment reminder (email reminder)
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Discount email to accounting → Email reminder to accounting. The discount email is sent if an incoming payment was linked and there is a difference between the amount received and the invoice amount.
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Prepayment email reminder (order) → Days after the prepayment email is to be sent as a reminder to the customer (order). Email is sent by the default email from basic settings
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E-mail for cancellation to accounting → Email sent to accounting (default e-mail from basic settings), so that prepayment orders that have been open for too long can be canceled
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Payment mail amount threshold → EUR Amount from which the payment mail should still be sent to the customer (order) (see below for setting for the email function)
Other settings
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Allow overdraw cash discount in incoming payment → Number of days by which the automatic recognition in incoming payment should still take effect (extend cash discount period in incoming payment additionally by x days)
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Show agent + sales → Show agent and sales in the info box on the dunning document
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Send reminders via e-mail account → Setting for the e-mail address from which the reminders are sent (version info: as of 19.3)
A dunning fee can be specified for each dunning level starting with "Dunning 1"; the dunning fees for the dunning levels do not add up. Therefore, the respective total fee must be specified for each dunning level. Dunning fees are displayed without taxation. The fee of e.g. 5 EUR will then also be displayed as 5 EUR on the dunning notice. Dunning fees must be specified as a variable if the fee is to be displayed on the document. Dunning fees can only be inserted via the dunning texts. You can find examples of this in the section sample texts dunning.
The process starter can also be set to "periode → 1 minute" for the dunning process, so that the dunning calculation is processed via the background process and can be called up at any time. In parallel, the times of the process starter are defined so that the process starter does not recalculate the dunning process every minute, but only at the fixed times and by manual click call.
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Activation and date fields control the calculation at fixed times
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The dunning process starter must be set to every minute
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Without setting the time, the process is only triggered by clicking on the "calculate dunning" button in the dunning overview
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The process is moved to the background here and runs in the background depending on the quantity of invoices in the dunning process
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With time specification the process runs in the background at the times, but can also be triggered in front with the button
Prerequisite: The dunning process starter must be set to period 1, i.e. run every minute.
Even for orders with payment method prepayment, a payment reminder can be sent automatically to the customer after a certain number of days if the payment has not been received. For this purpose, the "Payment mail" checkbox must be activated in the project settings (Master data → Project → Settings).
In the settings you can define after how many days the payment reminder should be sent.
In order for the payment reminder to be sent, the payment method prepayment must be set in the order. In addition, the order must be at least as many days in the past as the number of days set in the dunning process for the first payment reminder to be sent. In addition, the customer's e-mail address must be saved in the master data or stored in the order.
Under Settings → Dunning Texts there is an overview of variables that can be used in the dunning documents. For each dunning level, you can define your own texts, which are then used in the respective dunning document.
The following variables can be used in the dunning texts. The variables are then replaced by the corresponding information in the dunning document:
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{DATE} = End of the newly given deadline (date)
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{DAYS} = Number of days in current dunning period (days)
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{DEBITAMOUNT} = Debit amount (EUR)
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{ACTUALAMOUNT} = Actual amount (EUR)
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{OPEN} = Amount debit - actual (EUR)
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{SUM} = Amount debit - actual + dunning fee (EUR)
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{CURRENCY} = Currency
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{DUECHARGE} = Dunning charge (EUR)
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{OPENWITHREMINDERFEE} = Dunning fee + Open amount
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{INVOICE} = Invoice number
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{INVOICEDATE} = Date of the invoice
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{DUNNINGDATE} = date of the last payment reminder or reminder (= the date when the next reminder level was last changed over (always concerns the most recent)
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{DATEINVOICEPAYMENTDESTINATION} = date of the original required payment (invoice date + days payment due date) of the invoice (date)
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{DATEPAYMENTREMINDERDUE} = date by which the payment reminder was due
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{PAYMENTREMINDERDATE} = date of the payment reminder
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{DUNNINGDATE1} = Date of dunning 1
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{DUNNINGDATE2} = Date of dunning 2
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{DUNNINGDATE3} = Date of dunning 3
The reminder texts themselves can be found in the business letter templates and are configurable there.
This allows dunning texts to be created for different projects and languages.
Note
Dunning 1:
Dear Sir or Madam,
You must have overlooked our payment reminder. Therefore, with this letter you will once again receive a list of the open items.
If you have not yet made the payment, please transfer the amount of {OPEN} EUR to our account by {DATE} to avoid further reminders and fees. Please indicate the invoice number {INVOICE} in the subject line.
If the outstanding amount has already been paid, please consider this letter as irrelevant.
Dunning 2:
Dear Sir or Madam,
our invoice dated {DATE INVOICE} was due for payment on {DATE INVOICE PAYMENT DATE}. Despite reminders and deadlines, the amount of {OPEN} EUR has still not been paid.
Please transfer the amount of {OPEN} EUR to our account mentioned below by {DATE}. We take the liberty to charge reminder fees in the amount of {DUNNINGFEE} EUR. Please indicate the invoice number {INVOICE} in the subject line. If the outstanding amount has already been paid, please consider this letter as irrelevant.
Dunning 3:
Dear Sir or Madam,
our invoice dated {DATE INVOICE} was due for payment on {DATE INVOICE PAYMENT DATE}. Despite reminders and setting deadlines, the amount of {OPEN} EUR has still not been paid.
Therefore, with this letter you will receive a final list of open items. Please indicate the invoice number {INVOICE} in the subject line. If the amount of {OPEN} EUR has not been received on our account by {DATE}, we will initiate the judicial dunning procedure.
Please contact us and let us avoid this: xxxxxxxxx
Sample text dunning fees- example 1:
Our claims against you are composed as follows: Value of goods/ total amount: {DEBIT} {CURRENCY} Of which still open: {OPEN} {CURRENCY} plus reminder fee:{DUNNINGFEE} {CURRENCY}. Total sum: {OPENWITHREMINDERFEE}{CURRENCY}.
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Example 2:
The reminder fee is {PAYMENT FEE} {PAYMENT FEE} plus outstanding invoice amount of {OPEN} EUR to be paid {TOTAL} {PAYMENT FEE}.
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Example 3:
Please transfer the amount of {OPEN} EUR to our account mentioned below by {DATE}. We take the liberty to charge reminder fees in the amount of {DUNNINGFEE} EUR. Please indicate the invoice number {INVOICE} in the subject line.
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Example 4:
Our claims against you are composed as follows: Value of goods/ total amount: {DEBIT} {CURRENCY} Of which still open: {OPEN} {CURRENCY} plus reminder fee:{DUNNINGFEE} {CURRENCY}.