PROVISION OF PORTFOLIO or estimated bad debts

Organizations (companies) and other entities that provide credit to customers for sale of goods should conform the portfolio department and record every customer debt in a ledger. This department is responsible for conducting a study to determine the ability of debt, payment habits, solvency of the debtor in order to avoid possible loss of purse. However, there are special cases such as death of clients, insolvency, change of country, fire and other contingencies q must be assumed by the company.therefore be estimated as uncollectible is part of the balance of provision for the little priest, after making a anlisis balance and maturity of each customer. This provision is the reservation that the company must calculate portfolio to protect the collection or recovery difficult and burdens. This emotional level there is the following by DIAN: From 0 to 3 months 0 More than 3 to 6 months 5 Over 6 to 12 months 10 In more than a year on 15