SAP Financial Accounting (SAP FI) Certified Application Associate Practice Exam

Which standard correspondence types can be used to exchange information with customers and suppliers?

1. Payment reminders

2. Dunning letters

3. Credit memos

4. Payment notices

The correct answer is: Dunning letters

Dunning letters are specifically designed as a standard correspondence type used to communicate with customers regarding overdue payments. They serve as formal reminders for outstanding invoices, helping to manage receivables and improve cash flow. Their main purpose is to prompt customers who have missed payments to settle their accounts while providing detailed information about the amounts due, thus facilitating better communication between the business and its clients. Payment reminders and payment notices, while related to finance, typically serve different functions. Payment reminders may happen early in the post-due process or even before a payment is late, and payment notices are usually confirmations of payments processed. Credit memos, on the other hand, are documents issued to reduce a customer’s debt but do not serve as a means of communication regarding overdue payments in the same way dunning letters do. Therefore, dunning letters stand out as the correct answer because they are the standard correspondence specifically intended to manage overdue payments in SAP Financial Accounting, establishing clear communication around financial obligations between the business and its customers.