Note 22. Accounts receivable
Accounts receivable with a maturity exceeding one year of SEK 126 (125) million have not been accounted for as non-current assets as they are not intended for permanent use.
For each class of financial instruments disclosures shall be made on credit risk and an analysis of financial assets that are past due or impaired. Within Alfa Laval, credit risk is in reality mainly related to accounts receivable. Below, a three-step model for expected credit losses is used for calculating and assessing the provision for bad debt.
- Recorded at inception (normally an historical experience-based percentage);
- For credit risks that have increased significantly since initial recognition (the credit risk has increased significantly if the receivable is more than 30 days overdue; otherwise based on indications of the customer having payment difficulties or financial weakness); and
- Related to objective evidence of impairment (incurred losses).
Only at a final loss the receivable is written off. Accounts receivable are reported net of provisions for bad debts. The provision for bad debts amounts to and has changed as follows:
| Osäkra fordringar | |||||||||
| MSEK | Koncernen | ||||||||
| MSEK | 1 januari | Omräknings-differens | Nya avsättningar och ökning av befintliga avsättningar | Ianspråktagna belopp | Outnyttjade belopp som återförts | Ändringar i | 31 december | ||
| Bad Debts | |||||||||
| Consolidated | |||||||||
| SEK millions | January 1 | Translation | New provisions and increase of existing provisions | Amounts | Unused amounts reversed | Change due to discounting | December 31 | ||
| År: | Year: | ||||||||
| 2023 | 2023 | 495 | -15 | 161 | -101 | -70 | 0 | 470 | |
| 2024 | 2024 | 470 | 2 | 250 | -82 | -91 | – | 549 | |
The amount of accounts receivable being overdue is an indication of the risk the company runs for ending up in bad debts.
| Reservering för förväntade kreditförluster för återstående löptid | ||||||||||||
| MSEK | Koncernen | |||||||||||
| Avseende | Reservering | |||||||||||
| Kund- och växelfordringar | Vid första | För kreditförlustrisker som ökat betydande sedan första | Relaterade till | Totalt | ||||||||
| MSEK | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||
| Provision for lifetime expected credit losses | ||||||||||||
| Consolidated | ||||||||||||
| Relating to | Provision | |||||||||||
| Accounts and notes | Recorded at inception | For credit risks that have increased significantly since initial recognition | Related to objective | Total | ||||||||
| SEK millions | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||
| Kund- och växelfordringar | Accounts and notes receivable | |||||||||||
| Icke förfallna | Undue | 8,395 | 8,541 | 4 | 5 | 1 | 17 | 32 | 45 | 37 | 67 | |
| Förfallna 1-30 dagar | Overdue 1-30 days | 959 | 1,017 | 0 | – | 3 | 1 | 1 | 6 | 4 | 7 | |
| Förfallna 31-60 dagar | Overdue 31-60 days | 545 | 565 | – | – | 11 | 8 | 0 | 5 | 11 | 13 | |
| Förfallna 61-90 dagar | Overdue 61-90 days | 180 | 171 | – | – | 8 | 3 | 5 | 20 | 13 | 23 | |
| Förfallna 91-365 dagar | Overdue 91-365 days | 503 | 521 | 12 | 16 | 143 | 110 | 44 | 44 | 200 | 170 | |
| Förfallna >365 dagar | Overdue >365 days | 225 | 224 | – | – | 139 | 127 | 144 | 63 | 283 | 190 | |
| Totalt | Total | 10,807 | 11,039 | 16 | 21 | 306 | 266 | 226 | 183 | 549 | 470 | |
| Varav växelfordringar | Where of notes receivable | 224 | 336 | |||||||||
| Kundfordringar exkl. växelfordringar | Accounts receivable excl. notes | 10,584 | 10,703 | |||||||||
| Osäkra fordringar | Bad debt | -549 | -421 | |||||||||
| Totala kundfordringar | Total accounts receivable | 10,034 | 10,282 | |||||||||
Of the total accounts and notes receivable, SEK 10,250 million pertains to contracts with external customers and SEK 8 million pertains to other external receivables. See Note 36 regarding contracts with external customers.