Credit Losses

9 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Credit Losses

Note 7. Credit Losses

We are exposed to credit losses primarily through our sales of software licenses and services to customers. We determine credit ratings for each customer in our portfolio based upon public information and information obtained directly from our customers. A credit limit for each customer is established and in certain cases we may require collateral or prepayment to mitigate credit risk. Our expected loss methodology is developed using historical collection experience, current customer credit information, current and future economic and market conditions and a review of the current status of the customer's account balances. We monitor our ongoing credit exposure through reviews of customer balances against contract terms and due dates, current economic conditions, and dispute resolution. Estimated credit losses are written off in the period in which the financial asset is no longer collectible.

The change in the allowance for credit losses for the nine months ended June 30, 2021 is as follows (dollars in thousands):

	Allowance for Credit Losses
Balance as of September 30, 2020	$	(1,394	)
Current period recovery for expected credit losses		521
Write-offs charged against the allowance for expected credit losses		(109	)
Foreign exchange impact on ending balance		82
Balance as of June 30, 2021	$	(900	)