Automatic Dunning & A/R Collection Letters

Automatic rules in th engine together with the Dunning Letter functionality allows Collections
Agents greater flexibility in the selection and creation of Dunning Letters.

The best way to contact either unresponsive customers or accounts with small overdue balances
where the cost of contact exceeds the outstanding amount is a Dunning letter. Standard ERP
systems generate dunning letters based on due dates of transactions and normally include all
transactions on Customer Accounts, thus not providing the collection agent with the flexibility to
exclude specific account transactions e.g. On Account/Unapplied receipts/Credit
Notes/Deductions. The collection analyst then has to modify the letter before sending to the
customer negating the efficiency of the supposedly automatic process.


  • The content of the Dunning letter can be defined and amended by the Collections Agent
  • On the fly Promise to Pay letters can be generated with chosen invoices or AR items
  • Different Dunning templates can be set up for different business groups e.g. large
    distributors/ small reseller, depending on the collection strategy adopted by your business
  • Stages in the collection escalation cycle can be set up for each business group and a
  • collection action assigned to each stage i.e. call, first reminder, final reminder etc. The
    collection actions can be a combination of letters, calls, email contact or agency referral
  • Different transmission methods can be saved by customer.  Emails can be automatically
    sent, Faxes sent, PDF’s sent and all documentation is stored on the Server & Customer
  • The content of the transaction data can be defined to include/ exclude certain account
    transactions e.g. credits, zero balances, deductions, disputes and unapplied cash
  • Different letter templates can be automatically used at the various stages of the collection
    escalation cycle
  • Actions for specific accounts will depend upon the size of the amounts due and the Days
    Beyond Terms (DBT) of the debt. As the debt moves through the escalation process
    different actions will be suggested e.g. from initial call reminder to referral to an agency


  • Increase customer touches with less collector time and effort
  • Customer only receives dunning letters when they meet the specified criteria of your
    business collection rules not the ERP’s standard rules
  • Different collection cycle steps can be created for different customer types e.g. large
    volume/small volume customers
  • Range of different letter templates can be created for different stages of the collection
  • Range of automatic delivery methods available for selection - email, fax, etc
  • Reduce your DBT and DSO
  • Reduce the risk of incurring Bad Debts
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Dunning Letters

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Credit and Collections
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Stephen Packwood, IT Manager, Taylor
Hobson, UK - Customer since 1996