ECL for Trade Receivables

As per the requirements of Ind AS 109 / IFRS 9 every company having trade receivables should compute the expected credit loss using the Simplified Approach mentioned in the Accounting Standard.

Become compliant with the requirements of Ind AS 109 / IFRS 9 using the cloud-based software tool used by several corporate entities

Schedule an Intro Call

Enter your info and we'll show you calendar options to meet with a member of our team:

Why choose RVSBELL Analytics for ECL for Trade Receivables?

1. Computation of ECL as per the requirements of the Accounting Standard
2. Simplified Approach for receivables ECL – recognizes lifetime expected credit loss
3. Determine appropriate groupings of receivables by creating segments based on two dimensions in customer master e.g., Divisions could be Paper, Infotech, Hotel, FMCG and Agri. Departments could be Wholesale, Retail, Institutional and Exports – based on these there the user can have up to 20 segments, if warranted 
4. Select the sample period to determine the historical loss percentage
5. Ability to create multiple scenarios for the segments created
6. Apply macro-economic data to get multipliers for different scenarios
7. Determine the probability weights for each scenario to arrive at the probability-weighted expected credit loss  

1. Processing on the flight- very fast
2. Back-end processing with the load balancing features
3. Downloads provided in excel format

Expected Credit Loss for Trade Receivables  is hosted on the world's most trusted cloud-computing service provider

Save time, money, and headaches with our cloud based software tool that needs just a web browser to compute the results

Talk To An Expert

Developed by experts

A: Create segments based on customer master with combinations of Divisions and Departments
 B: Determine the sample period that represents the historical loss most accurately
 C: Compute the historical loss rate for each segment defined by the user
 D: Apply the effect of macro-economic data by setting multipliers for the other two scenarios
 E: Determine the probability of each scenario and compute the probability weighted ECL

Benefits of cloud-based software

Cloud-based application with full security

Three User Profiles provided in the Customer Portal: Accountant role – Multiple accountants can enter the data.
Each accountant can view or edit the data uploaded by him/her
Manager role – One person responsible for the processed output, who can view and edit all data entered by any accountant.
He/she can process the data and generate all reports Auditor role – One auditor login to view all the input data and reports available in the system.

Can view the entire audit trail for all transactions and processes Dashboard providing details of historical loss percentage, ECL based on multiple scenarios for defined segments

Upload the data using simple input formats

Upload the raw data covering the customer master, invoices, collections, credit notes and write offs for the last several years
Upload the opening unpaid invoices as the starting point
Define the segments based on the data in customer master
Input the multipliers for various segments

Why RVSBELL Analytics?

Your Ultimate ECL Solution! Streamline your financial processes with our cutting-edge software designed specifically for businesses like yours.

Effortlessly compute Expected Credit Loss (ECL) for trade receivables using the simplified approach. Say goodbye to manual calculations and embrace accurate, automated, and forward-looking credit risk assessments. Stay compliant, make informed decisions, and ensure your financial statements are always on point. Dive into the future of financial analysis with RVSBELL Analytics today!