# Bad Debt Risk

> Identify overdue invoices most likely heading toward write-off, while a save is still possible. Use when the user asks about bad debt, write-off risk, invoices unlikely to be recovered, or wants to see which AR is at risk of becoming bad debt. Do NOT use for general overdue lists or collections prioritisation.

- Skill: `zoho/bad-debt-risk` (Agent Skill)
- Install (CLI): `npx skillmds@latest add zoho/bad-debt-risk`
- Raw SKILL.md: https://api.skillmd.com/api/skills/zoho/bad-debt-risk/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: AI & ML
- Author: zoho (https://skillmd.com/u/zoho)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/zoho/bad-debt-risk

---


# Bad Debt Risk

Surface invoices at high risk of write-off while a save is still possible.

## Setup

Resolve org ID via `ZohoBilling_List_all_Organizations`.

## Fetch (run in parallel)

| # | Tool | Purpose |
|---|------|---------|
| 1 | `ZohoBilling_Get_Bad_Debt_Report` | Already written-off amounts |
| 2 | `ZohoBilling_Get_AR_Aging_Details_Report` | All overdue invoices with age |
| 3 | `ZohoBilling_Get_Payment_Failures_Report` | Payment failure history |
| 4 | `ZohoBilling_Get_Subscriptions_Dunning_Report` | Active dunning state |

## Risk scoring

For each overdue invoice compute a **write-off risk score** (higher = more at risk):

```
  + 90+ days overdue                              → +40
  + 61–90 days overdue                            → +20
  + 2+ previous payment failures for this customer → +20
  + Currently in dunning and retries exhausted    → +20
  + No payment in last 120 days                   → +15
  − Partial payment received recently             → −15
  − Customer has other active paid subscriptions  → −10
```

Surface invoices with risk score ≥ 40 as **at-risk**.

## Output

```
Bad Debt Risk — [date]
Already written off (YTD): $XX,XXX
At-risk receivables: $XXX,XXX across N invoices
────────────────────────────────────────────────────────────────────
 #  Customer              Invoice     Amount    Days   Risk    Save window
────────────────────────────────────────────────────────────────────────
 1  Dead Deal Corp        INV-10011   $18,200   97d    🔴 High   Closing
 2  Struggling Inc        INV-10034   $9,400    78d    🟠 Med    2–3 weeks
 3  Late Payer Ltd        INV-10067   $4,100    65d    🟠 Med    4–5 weeks
────────────────────────────────────────────────────────────────────────

RECOMMENDED SAVE ACTIONS (propose-only):
  🔴 High risk: partial credit-note settlement or payment plan offer
  🟠 Medium risk: payment plan or restructure invoice due date
```

## Constraints

- Only surface invoices with risk score ≥ 40
- "Save window" is an estimate: (90 − days_overdue) days remaining before typical write-off
- Propose-only: no credit notes created, no write-offs applied

## Edge cases

- Zero at-risk invoices: "No invoices at high write-off risk 🟢"
- Bad debt report shows prior write-offs: always include YTD bad debt figure as context