How are debts prioritized for collection in GFEBS?

Debts are prioritized for collection in GFEBS primarily according to the age of the debt and the amount owed. This approach allows for a structured and strategic method of handling debts, ensuring that funds that are more overdue and potentially more challenging to collect are addressed first. By focusing on older debts, organizations can maximize their collection efforts on amounts that may increase in difficulty over time, effectively managing cash flow and reducing the overall risk of loss.

This prioritization strategy is essential in maintaining fiscal responsibility and operational efficiency within the organization. It allows financial managers to allocate resources effectively, ensuring that efforts are focused on the debts that are not only due for longer periods but also represent significant amounts, as larger debts often have a more substantial impact on the organization's financial health.

The other options, while they may seem relevant, do not align with the systematic approach utilized in GFEBS debt management. For example, while the type of debtor might provide some context, it does not create a clear framework for prioritization. Considering the size of the organization can also be misleading, as it does not directly relate to the urgency and amount of debt. Random selection methods would be inefficient and ineffective in managing debts, as they could overlook critical debts that require immediate attention. The emphasis