Expected Credit Loss (IFRS 9)
Measure the loss allowance on trade receivables with a provision matrix or a general 3-stage model, then post only the movement to impairment loss in one balanced entry.
Why this module
Expected Credit Loss (IFRS 9)
Post only what changed
The run recognises the movement from the opening allowance to the closing allowance in one balanced entry, debiting impairment loss and crediting the loss-allowance contra account on an increase and reversing on a decrease (IFRS 9.5.5.8), never re-posting the full allowance.
Simplified or general
The simplified provision matrix measures lifetime ECL as gross carrying amount at each bucket's loss rate. The general approach measures EAD times LGD times PD, using the 12-month PD for Stage 1 and the lifetime PD for Stages 2 and 3.
Opening allowance that ties out
The opening allowance defaults by roll-forward from the prior posted run's closing allowance, and a warning fires when it disagrees with the loss-allowance ledger balance carried into the period, so the roll-forward is confirmed before you post.
Day in the life
Quarter-end allowance in a few clicks
Open a run for the reporting date, define your ageing buckets and loss rates, and click Populate from Receivables to age open, unreconciled invoices by days past due into each bucket at the residual amount. The opening allowance rolls forward from last quarter automatically; if it does not tie to the loss-allowance ledger a warning tells you before you post. Compute, then post: the manager approves and the run books just the movement to impairment loss. Need to correct it later? Only a manager can reverse it, which reopens the matrix for editing.
Edge cases
The cases most modules quietly ignore.
In the shipped code today, each one a place where a cheaper module silently does the wrong thing.
Posting books only the closing-less-opening movement, so a period where the allowance falls debits the contra account and credits impairment loss as a genuine reversal, and a nil movement is refused with an explicit message rather than posting an empty entry.
Populate reads only posted, unreconciled receivable lines dated on or before the reporting date, uses each line's residual amount, skips credits and fully-settled lines, and treats not-yet-due amounts as zero days overdue so they land in the current bucket.
The opening allowance is defaulted from the prior posted run, and the ledger tie-out negates the contra account's credit balance and excludes this run's own move, so it compares like for like and flags a real mismatch.
Once posted or reversed, the reporting date, accounts, journal, opening allowance and every bucket are frozen against direct ORM writes, and buckets cannot be added, edited, moved in or deleted, so the recognised figure can never silently drift from the entry that was booked.
A database constraint allows only one run per company per reporting date, and a posted run cannot be deleted, so the allowance history stays a clean, single-valued roll-forward chain.
What is inside
Built to do the job, end to end.
- eh.ecl.run. The period-end measurement for one company: reporting date, measurement approach, opening and closing allowance, movement, the three GL accounts and journal, audit stamps for who computed and posted and when, and links to the posted and reversal moves.
- eh.ecl.bucket. One ageing band in the provision matrix: days-from and days-to bounds, loss rate, IFRS 9 stage, gross carrying amount, and the general-model inputs EAD, LGD, 12-month and lifetime PD, SICR and credit-impaired flags.
- Populate and stage helpers. action_populate_from_receivables ages open receivables into the buckets, while Stage from Ageing derives the stage from days past due and Stage from Risk derives it from the general-model SICR and credit-impaired flags for disclosure.
- Present-value discounting. A shared present-value factor from the effective interest rate and periods to recovery discounts both the simplified and general ECL (IFRS 9.5.5.17); leave the rate at zero for an undiscounted matrix.
- Posting and reversal. _build_move creates the balanced, sealed movement entry and posts it; action_reverse creates and posts a dated reversal, both restricted to the EH Accounting Manager group with the run's state flagged as a controlled transition.
- Security and isolation. User, manager and read-only auditor access on both models, global company-isolation record rules on runs and buckets, and manager-only gating on posting, reversal, cancellation and any state change on a GL-backed run.
Honest about the edges
What this does not do, so nothing surprises you.
- It covers trade receivables from the accounting ledger; it does not model loans, debt securities, lease receivables or off-balance-sheet loan commitments and financial guarantee contracts.
- It does not calibrate loss rates, probabilities of default or LGD for you; you supply the matrix rates and the general-model risk parameters.
- It does not incorporate forward-looking macroeconomic scenarios or probability-weighted outcomes; the matrix and general inputs are applied as entered.
- Populate ages receivables by days past their due date only; it does not group by customer segment, product or geography on its own.
- It posts the allowance movement and its reversal; it does not perform write-off of specific invoices or reconcile the allowance against derecognised balances.
- It produces the run, the matrix and the ledger movement; it does not render a standalone IFRS 7 credit-risk disclosure note or an ECL roll-forward report document.
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Expected credit loss run, computedThe IFRS 9 provision matrix staged by days past due, with the total gross exposure, the closing loss allowance, and the movement recognised to profit or loss.
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| Availability |
Odoo Online
Odoo.sh
On Premise
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| Odoo Apps Dependencies |
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Discuss (mail)
• Invoicing (account) |
| Community Apps Dependencies | Show |
| Lines of code | 5744 |
| Technical Name |
eh_account_ecl |
| License | LGPL-3 |
| Website | https://www.erpheritage.com.au/ |
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