Dunning: open items become paid invoices.

What dunning software does

Growing service firms often have hundreds of open items in Excel lists; reminders are sent manually, payment matching happens at month-end with a bank statement printout. That eats time, lets margins drop out of the cash flow, and creates conflict potential with clients.

A dunning software automates the process from open item to incoming payment. Dunning levels run automatically, discount rules are applied correctly, bank payments match themselves. What remains are real clarification cases, not administrative noise.

Dunning levels with configurable text

Per client you can configure multi-step dunning levels: reminder after due date, 1st reminder, 2nd reminder, 3rd reminder with collection threat, collection hand-over. Text, deadlines and fees are freely configurable. Dunning holds per invoice or per client can be set on the fly.

Discount and payment terms

Per client the standard payment term is stored (typically 14 or 30 days). Discount rules (e.g. 2 % on payment within 7 days) are stated automatically on the invoice and matched correctly on payment. Special agreements per engagement override the client default.

Payment matching from bank statement

The biggest dunning lever is automated payment matching. teamspace imports the bank statement in CAMT.053 format (German standard). On clean IBAN match or invoice number in the payment reference, the payment is assigned automatically; the open item is closed.

On multiple payments, partial payments or unclear payment references the case lands in the clarification list. Per week typically 5 to 20 cases at a mid-sized service firm.

Receivables and steering

In the dashboard management sees at any time: open items with due date and dunning level, total receivables and trend, average payment duration (DSO) per client with trend, top-10 late payers for targeted follow-up. Liquidity bottlenecks become visible weeks before they turn into a problem.

Reviewed in the requirements check

Wondering whether teamspace can automate dunning in your organisation? In a 15- to 30-minute call we look at your discount rules, payment terms and dunning levels.