AI Modules/Working Papers/AR एजिंग

Sch III Amendment 2021· पत्र

AR एजिंग

Trade receivables एजिंग buckets per Schedule III amendment 2021.

Start the free trial →Book a walk-through

The 2021 amendment ला Schedule III mandates specific एजिंग buckets साठी trade receivables: कमी than 6 महिने, 6 महिने ला 1 वर्ष, 1 ला 2 वर्षे, 2 ला 3 वर्षे, आणि over 3 वर्षे. CORAA composes ही buckets automatically. Party-wise एजिंग unlocks वर Tier II (Party Master loaded); bill-wise precision वर Tier III (Bill नोंदणी करा loaded). Receivables over 3 वर्षे आहेत auto-flagged as Section 41(1) cessation candidates.

Five buckets per Sch III amendment 2021
Secured, Unsecured, Doubtful वर्गीकरण
Party-wise एजिंग वर Tier II
Bill-wise precision वर Tier III
Section 41(1) आयकर Act cessation candidates flagged
Provision साठी doubtful debts adequacy check

Two paths, one ledger

The old way, and ours.

Two paths to the same audit conclusion. One leaves traces; the other doesn't.

Traditional

The old way

-AR एजिंग extracted पासून accounting system वर वर्ष-end only
-Bucket boundaries set per Sch III amendment परंतु applied manually मध्ये Excel
-Section 41(1) cessation analysis एक separate exercise
-Provision adequacy assessed वर aggregate, नाही party-द्वारे-party

AR एजिंग build time: 2-4 तास. Cessation पुनरावलोकन: often deferred ला Form 3CD finalization.

CORAA

On the Ledger

लाइव्ह एजिंग computation as च्या any reference date
Secured / Unsecured / Doubtful split per Sch III amendment
Per-party एजिंग once Party Master loaded
Per-बीजक एजिंग once Bill नोंदणी करा loaded
Auto-flagging च्या receivables over 3 वर्षे साठी Sec 41(1) पुनरावलोकन

AR एजिंग instant. Cessation candidates surface before fieldwork concludes.

How it works

Three steps. Every trace logged.

Step 01

संदर्भ date selection

Pick the Balance Sheet date (typically March 31) किंवा any other reference date. CORAA computes the दिवस outstanding साठी every receivable as च्या ते date.

Step 02

Bucket allocation

Each receivable falls into one च्या the five Sch III amendment 2021 buckets. The bucket totals roll up ला the Trade Receivables line वर the Balance Sheet. CY आणि PY एजिंग rendered side द्वारे side.

Step 03

Cessation पुनरावलोकन

Receivables over 3 वर्षे आहेत candidates साठी write-off under Section 41(1) च्या the आयकर Act (cessation च्या liability, reverse साठी assets). The लेखापरीक्षक reviews each, decides ला प्रदान करा किंवा write off, आणि the disposition feeds Form 3CD Clause 16.

Inside the module

What you actually get.

Schedule III amendment 2021 buckets

Five buckets exactly as mandated. The bucket boundaries आहेत non-negotiable आणि CORAA's render matches the नियामक's exact text.

›कमी than 6 महिने
›6 महिने ला 1 वर्ष
›1 ला 2 वर्षे
›2 ला 3 वर्षे
›Over 3 वर्षे

Secured / Unsecured / Doubtful split

Each bucket further splits द्वारे सुरक्षा: Secured (against assets, guarantees), Unsecured, आणि Doubtful (provision-eligible). The वर्गीकरण feeds टीप 19 Trade Receivables.

›Secured: party-level सुरक्षा flag
›Unsecured: default साठी trade receivables
›Doubtful: provision-eligible per AS 4
›Total द्वारे वर्गीकरण वर टीप 19

Section 41(1) cessation flagging

Receivables over 3 वर्षे prompt Sec 41(1) पुनरावलोकन. जर the party आहे clearly ceased ला exist किंवा pay (winding up, NCLT order, prolonged absence), the receivable आहे written off; otherwise एक provision आहे created.

›Auto-flag साठी >3 वर्ष receivables
›Cessation evidence capture
›Write-off vs provision decision
›Feeds Form 3CD Clause 16 disposition

Provision साठी doubtful debts

AS 4 prescribes एक provision साठी doubtful debts based वर the लेखापरीक्षक's expectation च्या recoverability. CORAA suggests एक provision based वर एजिंग distribution; the लेखापरीक्षक confirms किंवा adjusts.

›AS 4 provision logic
›एजिंग-based suggestion
›लेखापरीक्षक adjustment सोबत rationale
›Provision flows ला टीप 19 आणि P&L

Frequently asked

Answers, up front.

विना the Party Master, CORAA शकतो still produce aggregate एजिंग buckets वर Tier I (because व्हाउचर्स carry dates regardless च्या party identity). The लेखापरीक्षक sees totals per bucket परंतु नाही the party-level breakdown. Tier II unlocks party-wise distribution; Tier III unlocks bill-wise precision.

Two signals: (1) लेखापरीक्षक manually flags the party as Doubtful मध्ये the Party Master, किंवा (2) CORAA's provision logic flags receivables ते आहे crossed the 1-वर्ष boundary विना payment activity. The लेखापरीक्षक confirms before the वर्गीकरण locks.

होय. CARO Rule 11(e) आवश्यक आहे the Trade Receivable Turnover Ratio. CORAA computes it as Net Credit Sales divided द्वारे Average Trade Receivables; the figure flows ला the Schedule III Ratios tab आणि ला CARO 2020 Clause 3(xi)(e). Variances over 25% पासून PY आवश्यक लेखापरीक्षक explanation.

See it on a real ledger

Run ar एजिंग on one of your engagements.

Bring a Trial Balance and a General Ledger. We'll walk through working papers end-to-end on your data, not a sandbox.

Start the free trial →Book a walk-through