The aging balance is an key tool for collection management and performance evaluation.
It shows what is the breakdown of receivable according to their age relative to their due date.
It allows to identify if the situation of accounts receivable is healthy (few late payments and especially no old overdue) or bad (high overdue with some of them very old).
The Aging balance report is composed by :
A graph :
Representation of aging brackets (current, 0-30d late, 31-60d, 61-90d, more 90d) for all your customers.
The aging balance can be filtered
- customer group
- internal actor (collector for example)
- item status
- item type
- or any custom field set as analytical
It's possible to set the overdue %
Would you like to use as an indicator the overdue % of more than 30 days, 60 days or 90 days ? The change done here is valid on the whole platform (Global view, customer file indicators...).
The Aging balance can be displayed at an earlier date
This approach is particularly relevant to review the evolution of overdue from one day to the next and to observe developments on previous dates (for example, at the end of each month, or from one year to the next).
A table :
This list highlights the aging balance per customer that can be sorted in many ways to target clients on which you want to act.
For example, a descending sort on overdue more than 90 days will show customers who have unpaid bills for a long time with as consequences a high risk for the cash and the profitability of your business.
The collection probability decreases rapidly with seniority of invoices. For example, invoices 90 days late are paid in only 70% of cases. And only 50% after 6 months.
The aging balance bracket can be customized (number of brackets can be increased to 7, time slot can be changed...), for more information