Overdue invoice prioritization

Purpose

Create an evidence-backed queue that tells collections which overdue invoice balances deserve attention first and why.

Scope

Assess AR open items, invoice due dates, customer segment and credit terms, payment history, disputes, credit notes, promises to pay, collection policy, and prior collection outcomes.

Excluded: contacting customers, changing invoice status, waiving charges, allocating cash, or making a credit-limit decision.

Data basis

• AR table with invoice_id, customer_id, invoice_date, due_date, currency, open_amount, dispute_flag, and status.
• Customer master with segment, terms, risk flag, account owner, and payment-history fields.
• Payments, credit notes, dispute register, promises-to-pay, and collections policy.

Result

A worklist with days overdue, collectible balance, dispute and promise status, policy stage, priority score, reason, owner, and citation, plus a summary by customer and aging bucket.

Quality criteria

• Days overdue uses the declared as-of date and due_date, not invoice_date.
• Open balances reconcile to AR totals after credits and payments are applied once.
• Disputed amounts are separated from undisputed collectible exposure.
• Priority scores reproduce from visible fields and policy weights.
• Every high-priority row states the evidence and next internal action.

Instructions

Calculate days overdue as as_of_date minus due_date and cap not-yet-due values at zero. Apply collection-policy stages before any discretionary score. Keep invoices with the same customer as separate rows and provide a customer total. Do not treat an absent promise or dispute as a negative status. Use the configured materiality threshold for escalation and show currency per amount.

Adapt before use

The queue is an internal prioritization view and must not be presented as a promise of collection or customer intent.

• Add AR, customer, payment, credit-note, dispute, and promise-to-pay mappings.
• Add the collection policy, score weights, aging buckets, as-of date, and escalation threshold.
• Define treatment of multi-currency balances, legal holds, and disputed invoices.