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Identifying Churn in AR

IDEA Tech Tip

  • 19 April 2018
  • Number of views: 652
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  • Categories: Tech Tip

Customer churn (also known as customer attrition, turnover, or defection) is when a customer decides to stop engagement with your company.

IDEA can help easily identify “churn” in accounts receivable by following these steps:

Perform a File Compare between the current and prior year databases. A File Compare will take the detail AR from both years, summarize, and join the databases. A difference column calculating the current and prior year balances will be created automatically. To determine potential AR churn, index the field containing the number of records (NRECS_2017) for the current year in ascending order. If that customer has a balance from the previous year, then it tells us that although they have a balance in both years, the decrease in activity (NRECS_2017 vs. NRECS_2016)) suggests that customer engagement has dropped off.

AR Churn Analysis

Mario Perez

Mario PerezMario Perez

Mario, Audit Analytics Consultant, has over 12 years’ experience as an IDEA user, trainer, and provider of technical support and consulting services. Starting with his introduction to IDEA at BDO New York, he’s leveraged an enthusiasm for data analytics to travel the world as a consultant, including working with the IDEA distributor in Scandinavia.

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