Report Description & Purpose

The Aging Report allows users to view and manage their Accounts Receivable, helping them to stay on top of customers’ unpaid invoices and prioritize collection efforts. This report helps organize information by sorting outstanding invoices into aging buckets based on the number of days since the invoice due date (e.g. 30, 60, 90 days, etc.) and grouping these amounts by customer.

Note: Unpaid invoices are listed as positive amounts, while any credits or unapplied payments that might offset these invoices are displayed as negative amounts.

Features & Primary Benefits

• View unpaid invoice amounts by Customer and group by number of days outstanding.
• Change the Target Date to see aging as of a specific point in time.
• Drill down into each amount to understand which Customers and Invoices are contributing to the total outstanding balance.

Predefined Filters

The following filters are automatically applied to the Aging Report. Click the Filters arrow to expand the section and adjust the criteria as needed.

Click X or + to remove or add a Transaction Type filter.

Report Calculations Explained 

For the provided Target Date, the Aging Report calculates:

• The remaining balance for any invoices that have not been fully paid
• The number of days between the due date on the invoice and the Target Date
• Which bucket this Invoice falls into, based on the Aging Period settings
• The remaining balance on credits that have not been fully applied
• The remaining balance on payments that have not been fully applied

The report performs these calculations by aggregating all of the events that have occurred up to the Target Date and assessing their impact on the transaction. Some of these events include:

• Posting an Invoice
• Reversing an Invoice
• Applying a Credit to an Invoice
• Applying a Payment to an Invoice
• Applying a Refund to a Payment

For example, let’s assume an invoice for $1000 is posted on January 1st with a due date of January 15th. On January 15th the customer makes a partial payment of $500 which is applied to the invoice, and pays the remaining balance on February 1st.

• With a Target Date of January 1st, the report will show a balance of $1000 in the Current bucket, since no payments have been applied and the due date has not yet passed.
• With a Target Date of January 31st, the $500 payment on January 15th has been applied and so the outstanding balance on the invoice is $500. The invoice is also now 16 days overdue, and will appear in the 1 - 30 day bucket.
• With a Target Date of February 15th, the invoice has now been fully paid and will no longer appear in the report.

Unapplied payments and unapplied credits work similarly, but with a few key differences:

• The balances for payments and credits are reduced when they are applied to an invoice, reversed or refunded.
• Unapplied amounts for payments and credits will always appear in the Current bucket.
• These will be displayed as negative amounts in the report, as they reduce the balance of an invoice.
• Once a payment or credit has been fully applied, it will no longer appear in this report.

When to Schedule this Report

The timing of when to run this report will vary based on the collections policies of your organization. One common example is to run this report as part of a month end reconciliation process, or to identify the most important customers to follow up on for payment.