> ## Documentation Index
> Fetch the complete documentation index at: https://docs.arcuserp.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Dunning Levels

> Use Dunning Levels to set the escalating overdue reminder emails Arcus sends for past-due invoices: how many days overdue each level starts, its label, its tone, and its email template.

Dunning is the series of reminders a customer gets as an invoice stays unpaid. Use Dunning Levels to decide when each reminder starts and how firm it sounds. A level starts when an invoice has been overdue for that level's number of days, and Arcus always uses the highest level an invoice has reached.

## Before You Start

* You need the **settings.view** permission to open the page.
* You need **settings.edit** to save. **Save dunning levels** is shown to every role that can open the page, but the server refuses the save for a role without **settings.edit**.
* Overdue reminders must be turned on before any level sends. Turn on **Enable overdue reminders** under **Terms Overdue Reminder** on **Settings > Payments & Checks > Payments**. The page itself says the same thing, but names the wrong page, so use Payments.
* The customer needs an email address on the account, and must not be opted out of reminders.

## Open Dunning Levels

1. In the deck, open **Settings**.
2. Under **Payments & Checks**, choose **Dunning Levels**.

The breadcrumb reads **Settings > Payments & Checks > Dunning Levels**. You can also search for **Dunning Levels** in the command palette.

## The Default Ladder

Until you set your own, Arcus uses three levels:

| Level | Starts at | Label | Tone |
| - | - | - | - |
| 1 | 1 day overdue | **Friendly Reminder** | **Friendly (gentle)** |
| 2 | 8 days overdue | **Firm Reminder** | **Firm** |
| 3 | 15 days overdue | **Final Notice** | **Final notice** |

The page shows these levels with **Use custom dunning levels** off. They are the schedule in force for every company that has never saved its own.

## Set Your Own Levels

1. Turn on **Use custom dunning levels**.
2. For each level, set **Days overdue**, a **Label**, a **Tone**, and a **Template key**.
3. Click **Add level** to add another level, or the trash icon to remove one.
4. Click **Save dunning levels**.

Arcus shows "Dunning levels saved".

| Field | What it does |
| - | - |
| **Days overdue** | How many days past the due date the invoice must be before this level applies. A whole number, 0 or more. |
| **Label** | The name of the level. A blank label becomes "Reminder" followed by the level number. |
| **Tone** | **Friendly (gentle)**, **Firm**, or **Final notice**. |
| **Template key** | A name for the level's reminder wording. Required. The three default levels use the friendly, firm, and final reminder keys. |

<Note>
  Every level sends the same **Payment Reminder** email, so the label, tone, and template key do not change the wording a customer reads. What each level changes is when a reminder starts. To change the wording, edit the Payment Reminder template on [Email Templates](/support/settings/email-templates).
</Note>

The rules for a ladder:

* You can have from 1 to 9 levels. **Add level** is disabled at 9, and the trash icon is disabled when only one level is left ("At least one level is required").
* Days overdue must rise with each level. The same day twice, or a lower day after a higher one, is refused.
* A new level starts 7 days after the last one, with a **Firm** tone and a name like "Reminder 4". Change them as you need.
* **Reset to default** puts the three default levels back and turns custom levels off. Save to apply it. Saving with **Use custom dunning levels** off clears your custom ladder, and the default applies.

## How Reminders Go Out

Every day Arcus looks at each customer's overdue invoices. For each invoice it finds the highest level whose **Days overdue** the invoice has reached, and emails the customer the **Payment Reminder**, with the invoice number, the balance, the due date, and a link to pay the invoice. An invoice below your first level is skipped.

An invoice is considered only when all of these are true:

* It is a posted or overdue invoice with an open balance, and its due date has passed.
* The customer has an email address and has not been opted out. Opt a customer out with **Overdue Reminder Opt-Out** on the customer's account page.
* It is not a draft, cancelled, archived, or expired order, and it was not brought in from your previous system. Those never receive reminders.

To avoid repeats, a customer is emailed at most once in the wait time you set as **Per-bucket dedup window (days)** on the Payments page, 7 days by default. Because the wait is counted across all levels, a customer who moves up to a firmer level inside the window waits for the window to pass before the next email.

## Messages You May See

| Message | What it means |
| - | - |
| "Dunning levels saved" | Your ladder is saved and applies at the next daily run. |
| "Add at least one dunning level, or reset to the default." | Custom levels are on but the list is empty. |
| "A maximum of 9 dunning levels is supported." | Remove a level. |
| "Level 2: days overdue must be a non-negative whole number." | Fix that level's **Days overdue**. The number in the message is the level. |
| "Days overdue must increase with each level (ascending order)." | Put the levels in rising order of days. |
| "Level 2: template key is required." | Fill in the **Template key**. |
| "Failed to save dunning levels", or another reason from the server | Nothing saved. The most common reason is a role without **settings.edit**. |
| "Access denied to this entity" | Your sign-in has no membership in the company the page is working in. |

## What Changes Elsewhere

* **Customer email**: each reminder is a customer email and appears in the Email Log. Its wording comes from the Payment Reminder template on [Email Templates](/support/settings/email-templates).
* **Accounting**: nothing posts. Reminders do not charge late fees and do not change an invoice.
* **Audit trail**: each save is recorded in the Audit Log with the old and new ladder.
* **Other open sessions**: when another administrator saves a change here, your page refreshes to show it.

<Note>
  Before this release, saving on this page returned a "not found" error and the ladder could not be changed. Saving now works, and a ladder you saved before is not affected.
</Note>

## Related Articles

<CardGroup cols={2}>
  <Card title="Late Fees" href="/support/settings/late-fees">
    Set the finance charge Arcus adds to overdue invoices.
  </Card>

  <Card title="Payments and Checks" href="/support/settings/payments-checks">
    Turn on overdue reminders and set the wait between reminders.
  </Card>

  <Card title="AR & Invoicing" href="/support/settings/ar-and-invoicing">
    Set invoice timing, due days, statements, and overpayment handling.
  </Card>

  <Card title="Collections Worklist" href="/support/accounting/collections">
    Work overdue balances by hand, log calls, and track promises to pay.
  </Card>

  <Card title="Email Templates" href="/support/settings/email-templates">
    Edit the wording of the reminder email customers receive.
  </Card>
</CardGroup>


This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.