Age Analysis |
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Go to Customer > Age Analysis
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Age Analysis
An accounts receivable (AR) age analysis focuses on categorizing outstanding customer invoices based on how long they have been unpaid.
Hover the mouse over the different fields on the form. If the cursor changes to a hand () , click to get more information.
Age Analysis Columns |
Age Analysis Columns Explained |
180 |
The amount is outstanding for 180 days or longer
Tip: Write Off Amount 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 account is the 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). |
To Allocate |
To allocate: Customers with Unallocated Payments |
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.
Important:
You can also:
•Send bulk emails and SMSes directly from the Age Analysis form.
•Suspend or Unsuspend customers from the same form.
Key Metrics to Track from AR aging Reports.
Go to File > Dashboard
https://bit.ly/SI_Age_Analysis
