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Model collections and reserve allocation for an entered overdue invoice balance without sending reminders.
Confirm what is actually overdue
Use the agreed due date and check disputes, credits and payments received posted after your cutoff. Exclude future installments. A collection percentage is a scenario assumption, not a probability assigned by this tool.
How the calculation works
Gross scenario payments received = overdue original unpaid amount × collection fraction. Net allocation base = max(payments received − administration cost, 0). Reserve allocation = net base × entered reserve fraction. Remaining allocation = net base − reserve.
A worked example
An overdue 5,000 balance at 80% collection gives 4,000 gross payments received. Less 150 administration leaves 3,850. A verified scenario reserve of 25% allocates 962.50, leaving 2,887.50.
Separate a reserve from a liability
A reserve is money you choose to hold, not an assessment of legally owed tax. Verify its basis with your adviser. Review a low-collection scenario before making spending commitments against an unpaid balance.
What the result leaves out
This sends no reminders and determines no tax obligation, collection rights or late fees. The reserve percentage is user supplied. If collection costs exceed payments received, the economic loss must be considered separately; the allocation base is floored at zero.
Open the calculator with your own figures →
The defaults are constructed examples, not market benchmarks. Choose one currency for every monetary input; the currency selector formats values and does not convert exchange rates. Keep a copy of the records and assumptions behind your result so you can repeat the comparison after the next reporting period.
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