debt recovery

Definition of debt recovery report
The debt aging report is a report that is prepared periodically to monitor the account of customers or suppliers, and it shows the accounts receivable balances of customers or suppliers, with the classification of these receivables according to the accounting period to which they belong.

The debt aging report can be made in more than one way in the ERP system, and the accounting periods are classified according to the requirements of the administration. The report can be made on a monthly basis, such as dues from 0 to 30 days and 31 to 60 days and so on, or the accounting periods are compressed, for example, the classification can be from 0 to 90 A day until the management can see the receivables during the quarter or semi-annual and so on

The importance of the debt recovery report
The importance of the debt reconstruction report comes in Afaky’s integrated accounting system (ERP), monitoring the customers’ account, following up on the payments due for payment by the customers to avoid delaying payments and affecting the cash flows, which may affect the company’s ability to fulfill its obligations towards suppliers and employees, and the payment of salaries and other expenses.

The debt reconstruction report also helps to give an indication or a warning to the administration to focus on customers who have exceeded the payment due period, but not more than 6 months, and to think of a motivating way for customers to pay the overdue amounts, such as giving them a cash discount in the event of payment within 10 days, or even reviewing the customer if he has any other reasons for non-payment