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Dunning letters are formal communications sent by a company to its customers to remind them of overdue payments. They are a key part of the Order to Cash (O2C) process, specifically under Accounts Receivable management, aimed at ensuring timely collection of outstanding invoices. The primary purpose of a dunning letter is to prompt the customer to settle their unpaid balances while maintaining a professional relationship. Effective dunning practices help reduce bad debts, improve cash flow, and maintain accurate financial records. Dunning letters typically follow a structured escalation process, starting with a polite reminder and progressively becoming firmer if payment is ___ __________ _________ __________ ____ ________ ________ ____ _______ _________.
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