Age Analysis |
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An accounts receivable (AR) age analysis focuses on categorizing outstanding customer invoices based on how long they have been unpaid.
Go to Customer > Age Analysis
Hover the mouse over the different menu options. If the cursor changes to a hand (
), then click to go to the subject.
Hover the mouse over the different fields on the form. If the cursor changes to a hand () , click to get more information.
Accounts Receivable Columns |
Description |
180 |
If you need to remove an amount, such as interest that the client doesn't want to pay. Double-click on the field and type in the amount you wish to write off. This method is quicker than navigating to Customer Journals to issue a credit. The contra default Bad Debt Account can be set in Ledger > Account Options Note: The journal entries will be: •Debit Bad Debt •Credit Debtor Control.
Tip: You can also right-click. |
Due Amount |
The amount will depend on the customer's terms. For instance, in the image above, customer Allan's due amount is R9955.55 (Total amount: R12243.19 - R2287.64 for the Current and 30-day amount). |
Information From an Accounts Receivable Age Analysis:
1. Outstanding Balances:Total amounts payable, categorized by aging.
2. Trends in Payments: Identify how long customers take to settle their accounts.
3.Credit Risk Assessment: Evaluate customers' creditworthiness based on their payment history and aging trends.
•If certain customers have balances consistently in older brackets, consider revising their credit terms or limits.
4. Problem Identification: Potential problems like bad debts, payment delays.
5. Performance Metrics: Assess the effectiveness of collection practices.
6. Decision-Making Support: Enable management to prioritize collections, negotiate payment terms, or make provisions for doubtful debts.
7. Segment by Customer Groups: Group customers by risk levels, industries, or geographic regions to uncover patterns and adjust strategies.
Key Metrics to Track from AR aging Reports.
Go to File > Dashboard
https://bit.ly/SI_Age_Analysis
