SAP Financial Accounting (SAP FI) Practice Exam

Where do you apply the dunning procedure after configuration?

1. At the branch office level

2. In the customer/vendor master record at the company code level

3. In the inventory management module

4. In financial statements

The correct answer is: In the customer/vendor master record at the company code level

The dunning procedure is applied in the customer or vendor master record specifically at the company code level. This is crucial because the dunning process involves systematically reminding customers or vendors about outstanding invoices or payments that are overdue. By configuring the dunning procedure at the company code level, businesses can tailor the dunning notifications and parameters according to their organizational structure and accounting practices. This ensures that debt collection aligns with the specific financial management strategies of each company code, allowing for customized dunning levels, intervals, and messages based on the characteristics of the debtor. The other contexts mentioned, such as branch offices, inventory management, and financial statements, are not applicable for the dunning procedure. The branch office level would lack the granularity needed to manage dunning effectively since the procedure is related to maintaining financial records directly linked with customer or vendor transactions. Inventory management focuses on physical goods and stock levels, which is unrelated to the credit management and receivables process where the dunning is applied. Moreover, while financial statements reflect financial health, they do not implement or manage dunning procedures directly; rather, they summarize the impact of such financial activities.