age analysis profile for debtors

age analysis profile for debtors

a summary analysis of outstanding DEBTOR balances in the debtors LEDGER classified according to how long these debts have been outstanding. For example, the age analysis profile might distinguish between debts which are less than one month old; those which are two months old; those which are three months old (stale debts); those which are four months old (doubtful as to repayment); and five months or older (mostly bad debts to be written off as irrecoverable). Preparation of periodic age analysis profiles which monitor the proportions of total outstanding debt falling into each age category can provide useful data for CREDIT CONTROL purposes. See CREDIT PERIOD, DEBTORS RATIO.
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