For each account in the dunning batch, firstly the system determines if the account qualifies for the next dunning level. It does this by a process of elimination.

An account will not qualify for the next level of dunning if any of the following are true.

• The batch process date is less than the last run date
• The account has been set to be excluded from dunning
• The account does not have a valid dunning procedure
• The dunning procedure has no levels
• The account has already reached the highest level of the dunning procedure
• Not enough time has elapsed from the days in arrears of the current highest-level item to the days in arrears of the next level
• None of the current highest-level items qualify to go to the next level
• The total of the items due does not meet the minimum for the next level If the account qualifies for the next level, a dunning record is created.

Next, each of the items for the qualifying account are then checked to see if they themselves individually qualify to go to the next level on their own merits.

An item will only go to the next level, if all the following apply.

• The item’s due date plus the days grace plus the days in arrears for the next level is less than the process date
• The item’s current balance is greater than the minimum for the dunning procedure
• If excluding certain types, and the item is not of that type
• If excluding disputes, and the item is not in dispute

When the dunning batch is closed, the qualifying open items are ‘tagged’ with their new dunning level. You can see the item’s dunning levels in the open item reports.