29 Manage Aging Methods

This chapter contains the following:

Aging Method: Explained

Creating an Aging Method: Worked Example

FAQs for Manage Aging Methods

Aging Method: Explained

Aging methods are periods of time used to group receivables, debit and credit items to achieve an understanding of a customers delinquency profile. Grouping transactions by buckets of time creates an aging view of the customer. Aged information allows the collector to be effective when trying to recover delinquent debt and also allows a collections organization to develop more effective policies to assign work and streamline efficiencies.

Aging Method Features

Aging is the concept of calculating a customers past due and current transactions. Oracle Fusion Advanced Collections groups overdue debt by time and assigns work based on buckets of debt items. Aging shows the amounts owed to the company by its customers and includes the length of time the amounts have been outstanding. For example, aging categorizes receivables into buckets such as; current, 30 days, 60 days, 90 days, and 120 days and over. Collections aging functionality consists of an Aging Methods Setup screen and a separate Aging tab. Aging methods can be used during the creation of dunning plans. Aging is a view of transaction or receivables data that helps a collector understand the overdue amounts viewed over time. This understanding enables the collector to take a payment or create an adjustment or dispute. Collections delivers preconfigured aging methods and allows the ability to create new aging methods based on company requirements.

Creating an Aging Method: Worked Example

This example demonstrates how to create an aging method not predefined in Oracle Fusion Advanced Collections.

Your company requires an aging method that is not a collections predefined aging method. You are to create a new aging method. Use the default values except where indicated. Create an aging method named 1 to 120 Days Method, with the following segments:

Sequence	Bucket Type	Aging Days From	Aging Days To	Aging Bucket Heading
1	Current	-9999	0	Current
2	Past Due	1	45	45 Past Due
3	Past Due	46	60	60 Past Due
4	Past Due	61	90	90 Past Due
5	Past Due	91	120	120 Past Due
6	Past Due	121	9999	121+ Past Due

Creating an Aging Method

Start from the Manage Aging Methods page.
From the Aging Method region, click the green plus sign to create an aging method.

Complete the fields, as shown in this table.

Field	Value
Aging Method Name	1 to 120 Aging Day Method
Aging Type	Statement Aging; 4 bucket and 7 bucket aging are options, depends on the number of buckets for your aging method.
Enable	Yes
Aging Method Set	Common Set
Aging Method Description	Current to 120 Day Aging method.

Click Save.

From the 1 to 120 Aging Day Method: Details, complete the fields, as shown in this table.

Field	Value
Sequence	1
Bucket Type	Past Due
Aging Days From	1
Aging Days To	45
Aging Bucket Heading	45 Past Due; Click the Create icon to create the row for the next sequence.
Sequence	2
Bucket Type	Past Due
Aging Days From	46
Aging Days To	60
Aging Bucket Heading	60 Past Due

Repeat the steps for sequences 4 to 6 and increase the Aging Days From and Aging Days To accordingly.
Click the Save and Close to complete the creation of a new aging method.
The following validation rules are in place when creating or modifying an aging method:
- A bucket must contain at least 2 bucket lines and at most 7 lines.
- A Bucket Type passes from the user interface as a fixed constant value.
- A bucket must have Aging Days From less than Aging Days To.
- All buckets must cover the range from -9999 to 9999 and there is no way to update a field with the value of -9999 or 9999.
- Aging buckets cannot have any gaps between -9999 to 9999.

FAQs for Manage Aging Methods

How can I modify a predefined aging method?

Predefined aging methods cannot be modified, however they can be copied, are renamed and allow modifications made to the duplicate. From the Manage Aging Methods page, select one of the delivered aging methods and select the Duplicate button. It is renamed as copy in front of the name of the duplicated aging method. For example a 5 Bucket Aging becomes Copy 5 Bucket Aging, and allows you to make your modifications. Saving your changes creates the modified aging method.