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Grouped Overdue Invoices Outside Normal Behaviour

Marsha Galicia avatar
Written by Marsha Galicia
Updated yesterday

XBert Type: Standard

Accounting Software: Xero, MYOB, QuickBooks

Country Restriction: All regions

Risk Type: Overdue Risk

Business Function: Sales

Overview

The "Grouped Overdue Invoices outside normal Behaviour" XBert detects when multiple invoices are significantly overdue — beyond what is considered typical based on your historical payment patterns. This alert helps you prioritise overdue collections across several customers where the risk of late payment is unusually high.

What it does

This XBert groups unpaid invoices and compares their overdue duration to your past invoice payment behaviour. It flags groups of invoices that are statistical outliers, meaning they are more overdue than expected for their value range, helping you act promptly on at-risk amounts.

How it works

XBert analyses your Paid invoices and follows this process:

  • Splits them into 5 bins based on invoice amount, with an equal number of invoices in each bin.

  • Calculates the overdue threshold for each bin using the standard outlier method:

    • Q3 + 1.5 × IQR (Interquartile Range)

  • Compares current unpaid invoices (7+ days overdue) against these thresholds.

  • Flags any invoices within a bin that are overdue beyond the cutoff.

  • Groups these flagged invoices into a single alert if multiple fall outside the norm.

Example: If invoices between $100–$900 are typically paid within 28 days, and you have 3 invoices in that range now 40–60 days overdue, this grouped alert is triggered.

Example/Use Case

You have five overdue invoices from three different customers, with the largest invoice ($3,200) now 52 days overdue. XBert compares these to historical norms and finds they are significantly outside your usual collection timeframes. Instead of separate alerts, this grouped alert helps you focus on resolving these priority invoices in bulk — before they escalate into bad debts.

Accounting software

All major Australian-compatible accounting software (e.g., Xero, MYOB, QuickBooks Online).

Which countries it supports

All regions.

Processes

This alert falls under the ‘Sales (AR)’ category and helps optimise your cash flow by addressing overdue amounts collectively. To resolve this issue:

  • Ensure your bank reconciliation is up to date to confirm payment hasn’t already been received.

  • Contact each customer with an overdue invoice and request payment or a payment commitment.

  • If a customer can’t pay in full, negotiate a part payment or instalment plan.

  • Consider tightening credit terms for these customers or requiring upfront payment in future.

  • Use tools like automated invoice reminders in Xero to help prevent future late payments.

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