We listed additional reporting parameters for “Ageing Analysis”
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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