What is dunning in accounts receivable?

Dunning is an old accounting word for the structured, repeated process of asking customers for payment on invoices that have gone past due. A dunning sequence typically starts with a gentle reminder, escalates in tone and urgency over time, and ends with a final notice before the account is either turned over to an agency or written off.

A well-designed dunning cadence is not about being harsh. It is about being consistent. Customers pay the businesses that follow up reliably, not because reminders annoy them into action, but because a clear pattern of follow-up signals that the invoice is tracked and will not be forgotten. In the absence of that signal, overdue invoices quietly slide down everyone's priority list.

Modern dunning blends channels: email reminders, phone calls, and portal notifications, timed so that each touch is closer together as an invoice ages. The value of automation here is not replacing judgment but ensuring that the 61st overdue invoice gets the same careful treatment as the first one, on a day when everyone is busy.