Dunning

A Dunning is a formal reminder for one or more overdue Sales Invoices of a customer. It lists the invoices, counts the days overdue and, using the Dunning Type, adds interest for the delay and a fixed fee, then prints a letter you can email. Submitting the dunning locks it but posts nothing on its own; the interest and fee reach the ledger when the customer pays, because the Payment Entry created from the Dunning debits the bank for invoice plus charges and credits Debtors for the invoice and the two income accounts for the extras. Cancel the dunning if the customer disputes it. Use it for repeat late payers; for a one off delay a phone call is cheaper.

Interest = Outstanding x Rate % x Days overdue / 365; Rs 36,160 x 2% x 30 / 365 = Rs 59

1. 01Go to Invoicing > Dunning > New and pick the customer.
2. 02Click Fetch Overdue Payments; the overdue invoices and their days overdue load.
3. 03Pick the Dunning Type; interest and the fee are computed and the letter text fills.
4. 04Save and Submit; the dunning locks but nothing posts yet.
5. 05Print or email the letter to the customer.
6. 06When paid, click Create > Payment; the entry above posts and marks the invoice and dunning Resolved.

Create from Payments > Dunning for an overdue Sales Invoice, then print and send it. Submitted dunnings lock.

If ACC-SINV-2026-00004 were 30 days late at 2% yearly interest, a dunning adds about Rs 59 interest and a Rs 200 fee.