Dunning is a term used to describe the business process followed for accounts that are delinquent or for which a transaction against an electronic form of payment on file has been declined. Aria supports the creation of dunning processes for specific plans and/or payment types (electronic, payment terms). In Aria, you can configure up to eight dunning steps per dunning process, in addition to a final dunning step.
What Dunning Does
You can set up your dunning processes to do the following when a payment is due, the due date has passed, and a customer has not yet paid:
- Send an email to the customer
- Re-attempt the collection after a specified number of days
- Charge a late fee
When a Master Plan Instance reaches the final step of dunning, that Master Plan Instance goes into a "Suspended" status.
When Dunning Occurs
Customers will go into dunning if their balances go over the applicable threshold:
- For Master Plan Instances associated with a billing group for which the primary payment method is an electronic payment: Dunning will begin if the customer's Master Plan Instance balance goes over the Minimum Collection Threshold. The Minimum Collection Threshold is the minimum amount for which Aria should attempt a collection.
- For Master Plan Instances associated with a billing group for which the primary payment method is Payment terms: Dunning will begin if the customer's Master Plan Instance balance goes over the Payment-Terms Threshold Balance. The Payment-Terms Threshold Balance is the minimum statement balance that a payment terms Master Plan Instance should have in order for that Master Plan Instance to be considered past due.
How Dunning Works
You can associate dunning processes with one or more payment methods and/or one or more plans, or directly to a dunning group. Master Plan Instances are grouped together within a dunning group and then a dunning process can be assigned to that dunning group, which overrides the dunning process of the individual Master Plan Instances.
Grouping Master Plan Instances together coordinates the final step of dunning, meaning that when the first Master Plan Instance is "Suspended" due to dunning, all other Master Plan Instances assigned to that dunning group also go into a "Suspended" status.
Dunning groups can be made up of multiple Master Plan Instances, as shown with "MPI 1" and "MPI 2" in the example below. Dunning groups can also be made up of just one Master Plan Instance, as shown with "MPI 3" in the example below to dun separately than the rest of the account.
In the example below, if "MPI 1" goes into the final step of dunning, "MPI 2" would also become suspended. If "MPI 3" goes into dunning, the rest of the account (i.e. "MPI 1" and "MPI 2") is not affected.
You can manage dunning groups, and specify which Master Plan Instances are assigned to each dunning group, by navigating to the Dunning Groups page of an account (Accounts > Plans > Dunning Groups).
Note: Please note that, by default, a Master Plan in Dunning (with a dunning_state of "In Progress"), cannot be canceled. This behavior can be modified under Configuration > Payments > Payment Settings. Change the value from, "Do Not Allow" to "Allow."