We listed additional reporting parameters for “Ageing Analysis”

https://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.

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