AR Ageing Analysis – Variants

Ageing analysis has been around for quite some time and several variations have emerged in order to ease analysis. Here are some popular visualizations of KPI’s in this area

AR Due Amount vs Number of Invoices,
AR_Ageing_Invoiceplotted together gives a perspective on average invoice value and distribution of Receivables Amount across different invoices.

Although AR Overdue and AR Receivable
AR_Ageing_OverdueAmount provide two different perspectives to cash flow, they are both seen together at times depending on analysis context.

Distribution of Invoices in detailed
AR_Ageing_ScatterPlotmanner is another way of prioritizing collection activities. A simple scatter plot of Amount versus Age can virtually group the invoices into four quadrants. For example, one can prioritize by assigning Top Left quadrant with high priority followed by Bottom Left with Medium priority and Top Right and Bottom Right having Low and Very Low priority.

A similar approach to the previous option with three
AR_Ageing_Bubblemeasures i.e. Amount, Age and Number of invoices. This option aggregates data to some extent when compared with scatter plot, which shows all invoices.

Many more adaptions of the basic analysis technique is found in real world and couple of examples are below

  • Adding a mean/average line within the chart to look at deviations from standard
  • Grouping invoice based on high value/low value and analyze severity of impact