Dunning Emails through NetSuite SuiteApp
One of our European clients required the implementation of Dunning emails to their customers to notify them of overdues. (Dunning emails are sent to customers as a reminder to settle their debt with a subscription business.)
Our client’s main requirements were:
1. Send Dunning Emails to their customers depending on how many days an invoice is overdue and categorize them as BPO (Business Process Outsourcing) and Non-BPO with four levels of invoice dunning.
2. A PDF statement should be attached when a dunning email is sent to their customers.
Here are the four invoice dunning levels that our client wanted to implement:
• Gentle Reminder (10/20 days after due date)
• Reminder (30 days after due date)
• Urgent reminder (45 days after due date)
• Final Reminder (60 days after due date)
1. A custom field needs to be created on the customer record to indicate if the customer is a BPO or Non-BPO customer.
2. If the customer is a BPO and the invoice is 10 days & then 20 days overdue, then the following Gentle Reminder Email Template should be used. (Refer image below).
3. If the customer is a Non-BPO and the invoice is 10 days overdue, then the Gentle Reminder Email Template should be used.
Gentle Reminder image
Note: Our client required 3 more similar reminders to be set up. These reminders vary according to the number of days an invoice is overdue. The content of these email templates is based upon the proximity to the deadlines and will vary according to urgency.
Also, it is important to note that the dunning dates vary according to the type of customer (BPO or Non-BPO). For instance, refer the above image of the gentle reminder. The gentle reminder is set to 10 days or 20 days overdue for a BPO customer whereas it is set to 10 days for a Non-BPO customer. The difference in date structure is applicable to all four invoice dunning levels.
Our development team approached the challenge with NetSuite’s ‘Dunning Letters SuiteApp’. The Dunning Letters SuiteApp enabled our developers to set up an automated dunning process in NetSuite to help manage the collection of your accounts receivable and send reminder letters before the payment is due.
To set up an ‘automated dunning process’, our resources created dunning procedures and assigned them to customers. They initiated it through creating a custom field to select the type of customer – BPO/Non-BPO. A 5-step process was followed to attain the requirements given by our client.
1. Scheduling the Dunning Evaluation Workflow
2. Dunning Template
3. Dunning Level Rule
4. Dunning Procedures
5. Assign dunning procedure to the customer
Our developers solved a range of problems that our client faced, including the automation of dunning letters. The system is set up to search for customers with overdue amounts, and according to the preset dunning levels, procedure emails will be sent. (Dunning levels define the thresholds for overdue amounts and days overdue, as well as the letter templates to use for each level.) We will also attach the PDF statement in the emails sent out.
The requirements set were achieved with perfection. Our developers added custom checkboxes and flows that aligned with the needs. Our client now enjoys the seamless service of dunning emails on NetSuite.