XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: All supported countries
Risk Type: Cash Flow Risk
Business Function: Sales
Overview
The "Unusually Overdue Invoice Outside Normal Behaviour" XBert finds sales invoices that are far more overdue than your usual pattern for invoices of a similar size. It helps you prioritise the late payments most likely to turn into bad debts, so you can chase them before they become a real cash flow problem.
What it does
XBert compares your current unpaid invoices against your own history of paid invoices. Rather than using a fixed "X days late" rule, it learns how long invoices of each size normally take to be paid, then highlights the unpaid invoices that have drifted well outside that normal behaviour.
How it works
XBert builds a baseline from your paid invoice history and uses it to judge whether a current unpaid invoice is genuinely unusual:
It needs a reliable baseline of at least 10 paid invoices. With fewer than this, your payment history is too thin to judge fairly, so the XBert stays quiet to avoid false alarms.
It sorts your paid invoices into 10 size bands and works out the typical number of overdue days for each band, as well as the typical (middle) overdue days for that particular customer.
It raises an invoice only when it is overdue by more than 25 per cent past both its size band's norm and the customer's own norm, and by at least 7 days as well. An invoice that is only marginally above average will not trigger.
As a safety net, any invoice that is 60 or more days overdue is always raised, regardless of the norms, so a genuinely late payment is never missed.
It only looks at recent invoices (those due within roughly the last three months) and ignores very small balances. Any invoice with an outstanding balance under $50 is treated as immaterial and is not raised, even if the figures look statistically unusual.
For example, if your invoices between $100 and $900 are usually paid within 28 days, an unpaid invoice in this range that is now 40 or more days overdue may be flagged as unusually late.
Example/Use Case
A regular customer, Harper Joinery, has an unpaid invoice of $467.50 that is now 46 days overdue. From your history, invoices of this size are normally paid within about 28 days, and Harper Joinery has always paid on time before. Because this invoice is well beyond both norms and the balance is material, XBert raises it for your attention. You ring their bookkeeper, Maria, discover the invoice was missed while she was on leave, and arrange payment that week, recovering the $467.50 before it ages further.
Accounting software
This XBert runs on all major supported accounting software, including Xero, MYOB and QuickBooks Online.
Which countries it supports
All supported countries.
Processes
This XBert sits under your Sales (accounts receivable) function and supports proactive credit control and cash flow protection. To resolve it:
Check your bank reconciliation is up to date, to confirm the payment hasn't already been received and simply not matched to the invoice.
Contact the customer to request payment or agree on a payment plan.
Review the customer's credit terms — consider shortening payment terms or requesting upfront payment in future.
Make it easier to pay by offering convenient payment options.
Automate reminders so customers are notified when payments fall due or become overdue. If you use Xero, you can enable invoice reminders. Learn more on Xero Central.
Once the invoice has been paid or the situation corrected, mark the XBert as resolved.