Dunning
Dunning is the process of communicating with customers to remind them of overdue invoices and attempt to recover the outstanding amounts.
Also called collections.
It usually runs as a sequence of escalating reminders on a schedule, with retries against the payment method in between.
Automating it recovers revenue that would otherwise be written off, and it removes a task that scales linearly with customer count.
Common questions
- What is a dunning process?
A dunning process is a scheduled sequence of reminders and payment retries sent after an invoice becomes overdue, escalating in tone and frequency until the invoice is paid or written off.
- What is the difference between dunning and collections?
Dunning is the automated, in-house reminder and retry sequence run against overdue invoices. Collections is the broader function of recovering outstanding amounts, which may escalate to human intervention or a third-party agency.