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What is the maximum dunning level that can be assigned to a dunning procedure?

A) 5 levels
B) 9 levels
C) 12 levels
D) 7 levels

User Warfield
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1 Answer

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Final answer:

The maximum number of dunning levels that can be assigned to a dunning procedure is 9. This allows a business to systematically escalate reminders and actions for unpaid invoices.

Step-by-step explanation:

The maximum dunning level that can be assigned to a dunning procedure is B) 9 levels. Dunning is a key process in accounts receivable management where reminders are sent to customers to ensure the timely payment of outstanding invoices. A dunning procedure typically includes a series of escalating reminders, known as dunning levels. Each dunning level represents a reminder or action taken at a different stage of the dunning process. With 9 levels available, this allows businesses to develop a comprehensive approach to managing overdue payments, escalating from initial reminders to more serious actions such as final notices or legal steps if necessary.

User Kidquick
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