SAP Financial Accounting (SAP FI) Practice Exam

What components are included in the dunning procedure?

1. Trading hours, employee identifiers, and product categories

2. Frequency the account is checked, levels of dunning, interest rate per level

3. Sales forecasts, lead times, and shipping costs

4. Account limits, payment reminders, and discount rates

The correct answer is: Frequency the account is checked, levels of dunning, interest rate per level

The components included in the dunning procedure are crucial for managing accounts receivable and ensuring timely collection of outstanding debts. The dunning procedure involves systematic reminders sent to customers about overdue payments, and its components play a significant role in defining how these reminders are structured and executed. The frequency with which an account is checked determines how often the system will review accounts for overdue balances. This ensures that customers are reminded promptly based on company policy. Levels of dunning refer to the stages of reminders that escalate in tone and urgency; for instance, the first reminder might be a polite request, while subsequent reminders may become more assertive. Finally, the interest rate per level outlines the additional charges that may apply to overdue payments at various dunning stages, which incentivizes timely payment by adding financial consequences for delay. In contrast, the other options do not pertain to the dunning process. For example, trading hours, employee identifiers, and product categories relate to operational aspects of business but do not contribute to payment collections. Similarly, sales forecasts, lead times, and shipping costs deal with logistics and sales planning rather than receivables management. Finally, account limits, payment reminders, and discount rates are elements of financial management but do not encapsulate the structured approach that