SAP FI Practice Exam 2025 – Complete Preparation Guide

The correct choice is the dunning procedure, as it is the framework used in SAP Financial Accounting to manage the follow-up process for collecting outstanding debts from customers. By associating a dunning procedure with a customer, the business can automate the process of identifying overdue invoices and sending out collection notices at specified intervals.

The dunning procedure includes defined rules specifying how reminders should be sent, the content of those reminders, and the timing for follow-ups based on the age of the outstanding items. This not only helps in maintaining cash flow but also streamlines the accounts receivable process by ensuring that overdue accounts are systematically addressed.

In contrast, the other options play different roles in the financial management process. The payment method pertains to how a customer chooses to settle invoices, which is not directly related to the collection of past-due amounts. The credit limit refers to the maximum amount of credit extended to a customer, influencing sales decisions rather than the collection process itself. Meanwhile, a customer group is used for categorizing customers for reporting and pricing strategies but does not directly affect dunning activities. Thus, the dunning procedure is essential for effective collection notice management for overdue accounts.