What it is
ASC 326 measures the allowance for credit losses on expected losses over the life of the receivable. For trade receivables the loss-rate method by aging bucket is the common approach. This workbook computes the historical loss rate for each bucket from your own balances and write-offs, then applies adjustments.
Qualitative and forecast adjustments enter as percentage points on each bucket with a basis column for the support. Individually evaluated receivables sit on a separate tab so they are not counted twice, and the allowance tab ties to the ledger and produces the true-up entry.
When to use it
- At each period end, to measure the allowance on trade receivables.
- When adopting CECL, to build the first model and the supporting history.
- When an auditor tests the allowance and asks for the rates, adjustments and tie-out.
What’s inside
- LossHistory tab: ten periods of balances and losses for five aging buckets with a selectable window
- Pool tab: current aging, historical rate, adjustments, adjusted rate and allowance
- Specific tab: individually evaluated receivables with expected loss
- Allowance tab: required allowance, ledger tie-out and the entry
Standard cited
This template follows ASC 326. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What does CECL measure?
Expected credit losses over the contractual life of the financial asset, based on past events, current conditions and reasonable and supportable forecasts. It replaces the incurred-loss model for most trade receivables.
How is the historical loss rate computed here?
For each aging bucket the workbook divides total losses by total balances over the periods you mark as included. Losses are write-offs net of recoveries that came from the balance in that bucket at the start of the period.
Where do forecasts and current conditions enter?
In the qualitative and forecast adjustment columns on the Pool tab, entered in percentage points for each bucket. Record the basis next to each adjustment and keep the supporting data in the file.
Why separate individually evaluated receivables?
A receivable that no longer shares risk characteristics with the pool is evaluated on its own. Counting it in both places overstates the allowance, so the Allowance tab checks that pool and specific balances add to total receivables.
Related templates
- Accounts Receivable Aging and Allowance Workpaper
- Accounts Receivable Confirmation Letter (Positive)
- Audit Program: Accounts Receivable and Revenue
- Summary of Uncorrected Misstatements (AU-C 450)
Last updated 11/05/2026. All free templates.