Add a Dunning Level in NetSuite

🚨 Problem: Effective accounts receivable management requires timely reminders for overdue payments. Setting up dunning level rules in NetSuite helps automate these reminders based on specific criteria such as days overdue and monetary thresholds.

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Steps to Establish Dunning Level Rules

1. Navigate to Dunning Level Rules:
   • 📂 Go to: Setup > Dunning > Dunning Level Rules.
   • ➕ Click on “New” to create a new dunning level rule.
2. Enter Basic Information:
   • 🏷️ Name: Provide a name for the rule, e.g., “My First Dunning Level Rule.”
3. Set Days Overdue:
   • 📅 Days Overdue: Enter the number of days overdue to trigger a dunning notice.
     • For reminders before the due date, use negative numbers (e.g., -3 for three days before due).
4. Select Currency:
   • 💱 Currency: Choose the relevant currency for the rule from the list available for the subsidiary (e.g., USD).
5. Define Monetary Thresholds:
   • 💵 Minimum Transaction Amount: Specify the minimum amount for individual or grouped invoices in the selected currency (e.g., $15,000).
   • 💰 Total Overdue Balance: Set the maximum overdue balance for the currency (e.g., $100,000).
6. Add and Set Default Currency:
   • ➕ Click “Add” to set the parameters.
   • 🌍 The first added currency is set as the default but can be changed if additional currencies are added.
   • Note: The default currency is crucial for handling transactions in undefined currencies by converting based on the last day of the previous month’s exchange rate.
7. Save the Rule:
   • 💾 Click “Save” to apply your settings.
8. Important Considerations:
   • 🔄 All rule creations and updates must be done via the user interface. Tools like CSV import, SOAP web services, or SuiteScripts are not supported for these actions.
   • 📺 If the dunning module is not set up, watch the previous video on installing and activating the dunning module.

Example Setup

• Name: My First Dunning Level Rule
• Days Overdue: -3 (for three days before due)
• Currency: USD
• Minimum Transaction Amount: $15,000
• Total Overdue Balance: $100,000

Final Thoughts

Setting up dunning level rules in NetSuite automates the process of reminding customers about overdue payments, helping to manage accounts receivable more effectively. By following these steps, you can ensure timely reminders and improve cash flow.