SMART Reserves

Benefits:

• The key advantage of SMART Reserves is its end-to-end coverage of the entire process – from analyzing a customer's open transactions to calculating the reserve amount. This ensures full control over the process from start to finish.
• SMART Reserves provides clear control over invoice due dates, deviations from initial contract terms, and the formation of the reserve. This helps avoid unforeseen situations and ensures transparency in financial activities.
• The solution enables the automatic calculation of overdue days based on the probability coefficient and the reserve amount.
• SMART Reserves integrates accounts receivable analysis, reserve calculation, and accounting entries, ensuring full transparency and the ability to track every transaction. The solution significantly improves accounts receivable management efficiency, optimizes costs, minimizes risks, and provides complete control over the company’s financial activities.

Functional capabilities:

• Defining the Risk Group for Customers: Assigning a risk group to each Customer.
• Defining the Bad Debt Risk Coefficient: Setting a bad debt risk coefficient for each overdue period according to the assigned risk group.
• Analysis of Unpaid Invoices, Overdue Days Calculation, and Reserve Calculation: The “Reserves for Bad Debt” document provides a detailed list of unpaid invoices, allowing easy tracking of outstanding debts. SMART Reserves automatically calculates the number of overdue days for each invoice and the bad debt reserve amount as of the reporting date.
• Generation of Accounting Entries: Generating accounting entries to reflect the reserve in the General Ledger accounts.