Dunning Plans in Advanced Collections replaced the Receivables Dunning Letter processing in Release 11i. Dunning Plans are relatively “simpler” way of implementing Advanced Collections.
If Dunning letters are used as part of the standard collection process, the Dunning Plans in Release 12 helps achieve the same result but adds more functionality by combining the score calculated using the scoring engine to pick the correct Dunning letter format.This implementation option also lets users create call back tasks in addition to sending the Dunning letters.
Dunning Letters in Release 12 are defined in the BI Publisher.
In 12 the word “delinquency” is new to most 11i users and this means an overdue item. .
There are 2 types of Dunning Plans that you may setup.
1. Days Overdue Method – based on the aging buckets you are using to collect your payments
You will setup the Dunning Plan and include Aging Bucket lines for each Aging Bucket Line you have assigned in your Aging Bucket.
For Example – if you are using a 7 Bucket Aging, then the Dunning Plan will have at least 6 Aging Bucket Lines.
2. Staged Method – based on the date of the last letter sent or Dunning Stage
When a Delinquency is created, the Staged Dunning Level is null. Once you run the Staged Dunning and that Delinquency is included in a letter, the Staged Dunning Level count is incremented. You may see this on the Transaction Tab if you bring up the Transaction and show the Staged Dunning Level count.
Dunning plans limitations
- Delinquency scoring engine and dunning plan scoring engine is one and same
- Scoring engine values are used both for delinquency status determination and aging bucket line determination so it can be tricky to obtain desired functionality
- A transaction can only be scored using one scoring engine – if you add a new scoring engine only new transactions will be scored with this
- AR Aging Buckets are used for days overdue determination only – unless you customise scoring components
- Only one aging bucket can be used per dunning plan
Running Concurrent Programs for Dunning Plans
You must run the following concurrent programs in Oracle Advanced Collections to execute dunning plans:
- IEX: Promise Reconciliation: This program updates the open promise information in Advanced Collections with payments received in Oracle Receivables to determine outstanding items.
- IEX: Territory Assignment: This program assigns collectors to customers who are using Oracle Territory Manager. You can assign collectors at the customer, account, or bill-to level. This program retrieves a list of available collectors for each territory and assigns the first collector on the list. If you are using Territory Assignment, it is advisable to run this concurrent program first whenever you run the IEX: Scoring Engine Harness.
- IEX: Scoring Engine Harness: You can select up to five scoring engines to run at the same time. The scoring harness assigns a value to an object such as a customer, account, or bill to location. Another score determines whether transactions are delinquent, pre-delinquent, or current.
- IEX: Send Dunnings for delinquent customers: This program sends the results of the scoring engine harness to Oracle XML Publisher to send out dunning correspondence.
- IEX: Create Dunning And Broken Promise Call Backs: If you have dunning callbacks as part of your dunning plan, run this program to create callback work items to a collector’s task list in the Collector’s Work Queue.
Dunning in Correspondence History
When you select the Correspondence history type on the History tab, Oracle Advanced Collections provides a review of all dunning events initiated by the dunning process. You can view this information by customer, account, bill to location, or delinquency data level. Summary level information on all dunning events are also displayed in the All history.
Want to Preview the Dunning Letters Before They are Sent to Customers with Dunning Plans
Collections supports preview and selective dunning with “IEX: Send dunning for Delinquent customers” concurrent program ONLY.
There is no Preview/Draft functionality for Strategies when submitting the IEX: Bulk XML Delivery Manager manually.
Added the following parameters to “IEX: Send Dunnings for delinquent customers” concurrent program.
a. Preliminary : possible values are Yes/No
b. Process errors only : possible values are Yes/No
c. No of workers :
Following parameters can be used to process only particular/set of customer/account/bill to locations.
d. Customer name low :
e. Customer name high :
f. Account number low :
g. Account number high :
h. Billto location low :
i. Billto location high :
“IEX: Send Dunnings for delinquent customers” concurrent program always spawns the “Oracle Collections Delivery XML Process (IEX: Bulk XML Delivery Manager)” to process/send the dunning letters.
Migrating 11i Dunning Letter Sets to R12 Staged Dunning
- Concurrent program “IEX: Dunning Letter Sets Migration for Staged Dunning”
- and a profile option called ‘IEX: AR Dunning to IEX Dunning Migrated’ in 12.1.3
will allow you to migrate the dunning letter sets from 11i AR Dunning to R12 Advanced Collections.
Know five most common Dunning Plan Issues
- Missing Corresponding Template – you are missing a template name on an aging line or stage line in the Dunning Plan setup. See Note: 466328.1
- AgingBucketLineId NotFound – you are missing an aging line in your Dunning Plan setup or you have not covered the range from 1-100 for each Aging line.
- The send dunning flag in customer profile is set to no – The Send Dunning flag must be checked on the Customer Account or Bill To depending on your Business Level.
- Missing Score – You have not run the IEX: Scoring Engine Harness for the scoring engine that you linked in the Dunning Plan. That Dunning Plan uses the scores created by the linked engine to send the Dunning Letters.
- Required min Dunning amount in customer profile – You must set the minimum Dunning on the Account or Bill To depending on the Business Level.
Next Post will more focus on Scoring .