Dunning
The process of sending payment reminders for overdue invoices.
Dunning is the systematic process of sending increasingly urgent communications to customers with overdue payments. Modern dunning is often automated through accounting or billing software, with a sequence of emails escalating from friendly reminders to formal notices. Effective dunning balances firmness with customer relationship preservation.
Example
A SaaS company's automated dunning sequence sends a friendly reminder 3 days before due, a past-due notice at day 1, a second notice at day 15, and a final warning at day 30 before suspending the account.
Why It Matters for Your Business
Automated dunning recovers overdue payments without manual effort, and many customers simply forget—a timely reminder often resolves the issue immediately.
Related Terms
More Invoicing Terms
AR Aging
A report categorizing outstanding invoices by age.
Billing Cycle
The recurring period between billing statements.
Credit Memo
A document reducing the amount owed by a customer.
Days Sales Outstanding
Average days to collect payment after a sale.
Invoice
A document requesting payment for goods or services.
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