Dunning is the process of methodically communicating with customers to ensure the collection of accounts receivable. Communications progress from gentle reminders to threatening letters and phone calls and more or less intimidating location visits as accounts become more overdue.
The Dunning process involves a structured approach to collecting customer accounts receivable. It starts with gentle reminders and escalates to more aggressive tactics like threatening letters, phone calls, and in-person visits as the debt becomes increasingly delinquent.