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ecl-calculator

Calculate the IFRS 9 Expected Credit Loss provision on trade receivables and post the credit loss expense journal entry. Replaces the old incurred-loss model with a forward-looking provision from day one.

  • Area: Finance
  • Category: finance
  • Level: beginner
  • Input: data
  • Output: spreadsheet
  • Setup: none
  • Roles: Finance Manager

Calculates IFRS 9 Expected Credit Loss for trade receivables and individually significant balances.

How you ask

  • “Period-end ECL provision”
  • “ECL stage”
  • “Credit loss expense”

Inputs

  • period_id — Period id used to apply historical loss rates to AR aging buckets across the whole portfolio
  • loss_rates — Historical loss rates per aging bucket — defaults from references/default_loss_rates.md
  • period_id — Period id used to assess ECL individually for large or credit-impaired receivable balances
  • client_list — Client IDs or invoice wikilinks for individual assessment
  • current_ecl — Current-period ECL assessment — closing loss allowance.
  • prior_ecl — Prior-period ECL assessment — provides the opening balance.

Outputs

  • ecl-assessment (markdown)
  • ecl-je (markdown)
  • {scope.finance.ecl}/ECL-{YYYY}-{QQ}.md
  • {scope.finance.journals}/JE-{YYYY}-{NNN}.md