For many finance teams, keeping on top of overdue invoices can be a constant challenge. NetSuite’s accounts receivable module provides built-in tools to track outstanding invoices, manage customer balances, and run automated reminders, but relying solely on manual follow-ups can still slow down cash collection.
By automating dunning in NetSuite, finance teams can schedule reminders, customise escalation workflows, and maintain a clear audit trail — all while freeing staff from repetitive administrative tasks.
If you manage Accounts Receivable or collections in NetSuite, this probably sounds familiar
You start the week with hundreds or thousands of overdue invoices. You run saved searches and watch the emails go out.
Then the real work begins.
Customers reply with:
“We already paid this”
“There’s a pricing issue”
“Can someone call me?”
Or nothing at all
Those replies land in shared inboxes like collections@company.com, mixed with routine queries, forwarded threads, and out-of-office replies. Disputes are raised late or inconsistently. Collectors chase manually, often without full context. Sales gets pulled in ad hoc when a key account goes dark. Payment plans get negotiated inside email threads that run for weeks.
Meanwhile, leadership asks why DSO isn’t improving, despite “automated dunning being turned on”. This is the gap between sending dunning letters in NetSuite and running an effective NetSuite collections workflow.
What are dunning letters?
Dunning letters are formal communications sent to customers about overdue invoices and past-due balances. In practice, they follow a staged escalation tied to how overdue an invoice is.
A typical dunning sequence might look like:
Day 0 (due date): Friendly reminder that payment is due
Day 15: First notice that payment is now past due
Day 30: Escalated notice (firmer language, clearer action required)
Day 60: Final notice before account action
Day 90+: Notice of collections referral, account suspension, or credit action
The tone, sender, and consequence typically escalate with each stage. Early reminders might come from billing (“In case this slipped through”). Later notices may come from a Collections Lead, Credit Controller, or Controller with direct wording and explicit consequences.
Most AR teams automate this in NetSuite using saved searches + email templates. You define the ageing buckets, map them to specific dunning templates, and schedule when they fire. NetSuite handles outbound communication at scale.
This automation is valuable: it enforces consistent outreach, reduces manual tracking, and creates an audit trail. But it’s also where most “automated collections” stop: at the send button.
What happens when customers respond is where the real complexity — and opportunity — begins.
How dunning works in NetSuite
In NetSuite, dunning involves sending structured reminders to customers with overdue invoices. Unlike generic payment prompts, these communications are purpose-built to encourage payment, confirm commitments, or flag disputes.
NetSuite dunning functionality is typically built around saved searches, email templates, and scheduled workflows.
NetSuite ensures these reminders are:
Customisable: Templates can be tailored for different customer groups, invoice ages, and escalation stages
Automated: Reminders can be scheduled at specific intervals without manual intervention
Auditable: Each communication is logged for reporting, compliance, and internal visibility
The basic configuration in NetSuite
Define ageing buckets (via saved searches)
Create saved searches that segment invoices by days overdue (current, 1–15, 16–30, 31–60, 61–90, 90+). Add filters for customer type, invoice amount, subsidiary, or terms to control who receives which dunning letter.
Build dunning email templates
Create templates per ageing bucket using merge fields (customer name, invoice number, amount due, due date). Escalate tone and next steps by stage.
Schedule the workflow
Use scheduled workflows or scripts to run daily/weekly. When invoices match the saved search criteria, NetSuite automatically sends the corresponding dunning email to the billing contact.
Track what was sent
NetSuite logs outbound communications in the customer record and/or invoice, creating a history of dunning letters sent.
By standardising follow-up, finance teams gain better control over receivables, maintain professional communication, and improve cash collection outcomes.
Automating dunning letters in NetSuite
Automation in NetSuite AR is often misunderstood:
Sending emails automatically ≠ automating dunning letters in NetSuite.
To automate dunning properly, you need four layers working together.
1) Invoice and customer segmentation (ERP-led)
NetSuite remains responsible for:
Invoice status (open, overdue, partially paid)
Customer records
Subsidiary and currency
Credit status and terms
Automation should start by segmenting invoices using NetSuite data — not treating all overdue invoices equally.
Examples:
High-value invoices escalate faster
Repeat late payers get firmer tone earlier
Strategic accounts follow a different path
2) Policy-driven escalation logic (not just cadence)
Native NetSuite dunning is largely time-based:
Effective automation adds decision logic:
Has the customer responded before?
Is there a dispute history?
Is the account nearing credit hold?
Was a promise-to-pay made and missed?
This logic should be explicit, auditable, and owned by AR.
3) Two-way communication and reply handling
This is the biggest gap in NetSuite dunning.
When customers reply:
NetSuite doesn’t classify the response
It doesn’t pause future dunning
It doesn’t route the issue automatically
Paraglide adds agentic AI that:
Reads and categorises replies (dispute, query, promise to pay)
Routes actions into the right workflow
Pauses or escalates dunning automatically
Keeps NetSuite as the source of truth
4) Feedback loops into AR and credit
Automation must close the loop:
Dispute raised → dunning paused
Dispute resolved → dunning resumes
Promise broken → escalation triggered
Risk increases → credit action flagged
Step-by-Step Guide to Automating Dunning in NetSuite
1. Define Reminder Workflows
Set up multiple stages of reminders (first, second, final)
Determine intervals based on invoice ageing and company policy
Include late fees or interest where applicable
2. Segment Customers
Apply rules for VIP clients, high-risk accounts, or region-specific requirements
Tailor frequency, tone, and escalation for different customer groups
3. Configure Templates
Use NetSuite’s standard templates or customise messaging
Include clear payment instructions, contact details, and links to online payment portals
4. Schedule Automated Runs
Choose daily, weekly, or monthly intervals based on invoice volume
Ensure only eligible invoices are included in each run
5. Optional Review
Review high-value or sensitive accounts before reminders are sent
Reduces errors and maintains strong customer relationships
6. Monitor and Optimise
Track payment responses and commitments
Adjust intervals, messaging, or escalation rules based on results
Analyse trends to continuously refine your dunning process
Best Practices for NetSuite Dunning Automation
Segment customers to balance efficiency and customer experience
Enable digital delivery to reduce costs and accelerate payments
Audit reminders regularly to maintain compliance and accuracy
Document procedures for training, consistency, and reporting
Iterate based on outcomes to continuously optimise collections
How AI agents work in a NetSuite dunning workflow
An AI agent sits on top of your existing NetSuite dunning setup. NetSuite still triggers the initial dunning emails via saved searches and aging buckets. When customers reply, the AI agent intercepts and handles those responses according to your policy.
1) Read and understand customer responses
The agent categorises replies, such as:
“We already paid” (payment verification needed)
“There’s a pricing issue” (potential dispute)
“Send the PO / invoice copy” (documentation request)
“Can we pay end of month?” (promise-to-pay / payment plan)
2) Take action based on AR policy and NetSuite data
Examples:
If a customer claims they paid, the agent checks NetSuite for recent transactions, unapplied payments, or mismatched remittances
If a dispute is raised, it logs the issue in NetSuite with structured tags and routes it to the right owner
If documentation is requested, it retrieves and sends the invoice, PO, or delivery confirmation (based on your rules)
If a payment plan is requested, it follows your criteria (auto-approve thresholds or escalate to a human)
3) Maintain context across the conversation
The agent keeps a single timeline: dunning letters sent, customer replies, actions taken, and what’s still outstanding — so collectors don’t inherit fragmented email threads.
4) Enforce escalation rules
If a customer promises payment by a date and misses it, the agent triggers the next escalation automatically. If an account hits 90 days and meets your criteria for credit hold or collections referral, it flags the handoff.
What this looks like in practice
A customer receives a 30-day overdue notice from NetSuite and replies:
“We’re waiting on approval — can you give us until the end of the month?”
Without an agent, that email lands in collections@company.com. A collector sees it later, logs a note (if they remember), sets a manual reminder, and moves on.
With an agent, the response is handled immediately:
The promise-to-pay is logged in NetSuite with a follow-up date
The customer receives a confirmation reply
If payment hasn’t posted by the promised date, the next message is triggered automatically
If payment posts, the agent confirms receipt and closes the loop
The compound effect (why this matters for DSO)
The value isn’t only faster replies. It’s consistent policy enforcement at scale:
Every promise to pay gets tracked
Every dispute gets captured early
Every documentation request gets fulfilled
Nothing is lost due to PTO, inbox overload, or handoff gaps
That’s what makes AI agents different from traditional automation: they don’t just execute fixed workflows — they handle the “messy middle” that NetSuite dunning was never designed to manage.
Dunning automation in NetSuite: Traditional vs AI-powered
Capability | Traditional NetSuite dunning | AI-powered dunning |
Outbound messaging | Automated via saved searches & templates |
|
Inbound response handling | Manual (shared inbox) | Automated (agent categorises) |
Dispute logging | Manual | Automatic structured capture |
Documentation requests | Manual retrieval | Automated fulfilment |
Payment verification | Manual reconciliation | Automated checks against NetSuite |
Promise-to-pay tracking | Manual notes & reminders | Automated logging + follow-up |
Policy enforcement | Dependent on the collector bandwidth | Consistent across accounts |
Escalation triggers | Manual judgment | Rule-based execution |
Context preservation | Fragmented threads | Single timeline |
After-hours coverage | None | 24/7 response and routing |
Capacity | Limited by team size | Scales to thousands of conversations |
How Paraglide works with NetSuite
Paraglide works alongside NetSuite. NetSuite remains the system of record for:
Invoices and invoice status
Customer, entity, and subsidiary data
Credit terms, credit holds, and balances
Accounting controls and compliance
Paraglide operates as an automation layer on top of NetSuite, focused on two-way accounts receivable communication and dunning workflow execution.
This separation allows AR teams to automate dunning letters, manage customer responses, and enforce escalation rules without changing NetSuite’s accounting logic, data ownership, or ERP controls.
Conclusion
Automating dunning in NetSuite allows finance teams to move from reactive, manual follow-ups to a more structured and efficient accounts receivable process. By leveraging NetSuite’s built-in tools alongside intelligent AI agents like Paraglide, organisations can manage overdue invoices more effectively, track promises-to-pay, handle disputes automatically, and prioritise high-risk accounts. This approach not only accelerates cash collection and improves cash flow predictability but also frees staff to focus on strategic, high-value work. Ultimately, combining traditional automation with AI-driven workflows creates a proactive, scalable, and professional collections process that supports both operational efficiency and broader finance strategy.