The Dunning process is an essential component of accounts receivable management in NetSuite. It involves systematically following up with customers regarding overdue invoices to encourage timely payment. Effective dunning helps maintain cash flow and strengthens customer relationships by addressing payment issues promptly.
In NetSuite, the Dunning process can be automated using the Dunning Management feature. This allows businesses to set up dunning letters that are automatically generated and sent to customers based on predefined criteria, such as the age of the invoice or the amount due. Users can customize the content of these letters to align with their communication style and business policies.
Additionally, NetSuite provides reporting tools that allow businesses to track outstanding invoices and monitor the effectiveness of their dunning efforts. By implementing a structured Dunning process, organizations can reduce days sales outstanding (DSO) and improve overall financial health.