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There are three situations where dunning does not take place automatically:
a) When a payment fails for one time charges or addons (added “immediately” and not on the next renewal) applied to a subscription.
b) When an attempt to manually collect a Not Paid invoice fails.
c) When a payment fails during activation (after trial ends).
Find more on dunning management here.
New Solution:
There are two situations where the dunning does not work, they are:
When a payment fails for one time charges (added immediately and not on the next renewal) applied to a subscription.
When an attempt to manually collect a Not Paid invoice fails.
Refer here to know more about dunning management.
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