Download E: Ind AS 109 Expected Credit Loss Provision Matrix (.xlsx)
What it does
Expected credit loss on trade receivables: ageing buckets, historical loss rates, a probability-weighted forward-looking overlay, individually assessed customers, the allowance movement and the P&L charge.
Who it is for
Accountants preparing the receivables provision, and auditors testing it.
How to use it
- Go to 'Inputs'. Type the reporting date (for example 31-Mar-2026). Check the ageing buckets (days past due) and change them if your policy differs.
- Still on 'Inputs', set the forward-looking overlay: for each economic scenario (Base, Upside, Downside) type a probability weight (they must add up to 100%) and how much it moves the loss rates (for example +30% in a downturn). Choose 'Weighted' or 'Simple' average for historical rates.
- Go to 'Historical'. For each past year, type the receivables in each bucket at year-end and how much of that amount was finally not recovered (written off). Three years of sample history are given; replace them with yours.
- Go to 'Ledger'. Delete the sample invoices and paste your open receivables: customer, invoice number, invoice date, due date and amount outstanding. Days past due and the bucket are worked out for you.
- If a customer is in serious trouble (for example insolvency), mark 'Individually assessed' = Yes and type the % you expect to lose. That invoice is then taken out of the matrix and provided for separately.
- Read the 'Provision Matrix' tab: balance, loss rate and allowance for each bucket.
- Go to 'Movement'. Type last year's closing allowance and any write-offs during the year. It gives the P&L charge (or reversal) and the journal entry. Check that all checks read OK.
Tabs in the file
| Tab | What it holds |
|---|---|
| Inputs | Reporting date, ageing buckets, economic scenarios and overlay. |
| Historical | Past receivable balances by bucket and amounts not recovered; historical loss rates. |
| Ledger | Open invoices at the reporting date with days past due, bucket and ECL per invoice. |
| Provision Matrix | Balance, historical rate, adjusted rate and allowance for each bucket. |
| Movement | Opening to closing allowance, P&L charge, journal entry and checks. |
Learn the topic
For computation and reconciliation assistance only; not a substitute for formal statutory audit or legal tax advice. All sample data is illustrative and made up. Rates, limits and rules must be checked against current law and your own agreements before use. No tax saving, audit outcome or compliance result is promised.