We listed additional reporting parameters for “Ageing Analysis”

http://faoblog.com/processes-ar-collections-ageing-analysis-4/

Any reporting will need to be developed based on the needs and the situation of your client.

We received a nice input from Mukesh Kumar Shilavat who works for Coca Cola which is shared below:

  • Frequency of billing-if the frequency of billing is reducing gradually or stopped, there may be problem with the relationship of the customer or any issue with the customer/or we are losing the customer.
  • Customers haven’t provided bank guarantee/security deposit should be given more consideration, and do the solvency analysis.
  • Pareto Distribution (80/20 ratio) is a great tool in Ageing analysis.
  • Initiate the legal advice if the dues are going to cross three years.

This was shared through a comment and also through a linked in group “India Finance Forum”

Thank you Mukesh for your inputs.

We would like to encourage our readers to share their feedback and also request them to share our post links with their groups so that a maximum number of people can benefit from these.

You may subscribe to the blog from the subscription box on the opening page of the blog. We have enabled a button on the top of the first page, which will enable you share your posts. If you wish to write about any of the current streams, you can do it at http://faoblog.com/guest-post/. We will review your post and release it within 48 hours of your posting.