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Setting up the dunning process

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Open invoices can automatically be sent to the dunning system be transferred if the payment deadline of an invoice has been exceeded or the payment deadline has expired. Thereby you can start from the first payment reminder to the last dunning level, creating a dunning document for the debtor.  

Accounting > Dunning system

Principle of dunning

Open invoices are automatically forwarded to the dunning system if the following applies:

  • Prepayment invoices: The predefined payment period has expired
  • Subsequent payment methods: The predefined payment deadline has been reached

Invoices that match these criteria are collected under Accounting > Dunning system
Within the dunning system, there are 5 dunning levels in xentral: Payment Reminder, Reminder 1, Reminder 2, Reminder 3, Collection. So that an invoice comes into the next Dunning level, the following must apply:

  • Predefined time since the last dunning level has elapsed
  • Reminder/payment reminder of the previous stage has been sent (via email or printer)

Dunning settings

You can make various settings for the dunning system. You can find these under Accounting > Dunning system > Settings:
First, you can set the following settings:

  • Days since last stage: Enter the number of days, that elapse between each dunning level until the invoice moves to the next Dunning level 
  • Mail dispatch: Check this box if an email is to be sent with the dunning document. If you do not check this field, the reminders will be the reminders printed
  • Dunning fee: Enter the dunning fee in EUR, which is due from a certain reminder level 
  • Display pos in table: If the item table with the invoice items should also be displayed in the dunning document, then tick this field

Prepayment orders for which an invoice has not yet been created do not end up directly in the dunning process, but it can be a payment reminder for orders sent. The interval of days you can enter in the area Prepayment e-mail Reminder (order).

Dunning texts

The Dunning letter description tab (Accounting > Dunning system > Settings > Dunning letter description) lists the variables you can use in the dunning texts. You can create your own dunning texts for each dunning level in the business letter templates. We recommend that you consult your tax office or legal advisor on the wording of the reminder texts. 
Administration > Settings > System > Business Letter Templates

file-1.pngThe corresponding type names are as follows:

  • PaymentMiss: Prepayment email Reminder (Order)
  • DunningPayment Reminder
  • DunningReminder1-3
  • DunningCollection

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