Monthly ageing of invoices
Monthly ageing of invoices
Analyzing ageing periods can help you monitor your receivables and payables, including tracking due dates for invoices and overdue payments.
For example, assume you have the following invoices:
 
Customer
Date
Amount
Terms
Due
A-Z Stationery
1 Jul 19
123.45
21 days from Inv
22 Jul 19
A-Z Stationery
14 Jul 19
200.50
21 days from Inv
4 Aug 19
Chelsea Mosset
2 Jul 19
400.24
C.O.D.
2 Jul 19
Footloose Dance Studio
30 Apr 19
25.00
30 days from Inv
30 May 19
Footloose Dance Studio
12 May 19
112.30
30 days from Inv
11 Jun 19
Footloose Dance Studio
29 Jun 19
149.30
30 days from Inv
29 Jul 19
Footloose Dance Studio
30 Jun 19
20.35
30 days from Inv
30 Jul 19
Footloose Dance Studio
6 Jul 19
90.70
30 days from Inv
5 Aug, 19
Footloose Dance Studio
21 Jul 19
85.12
30 days from Inv
20 Aug 19
My Town Realty
26 May 19
210.45
7 days from EOM
7 Jun 19
My Town Realty
10 Jun 19
142.40
7 days from EOM
7 Jul 19
Ageing by invoice date using month names
Assume you age invoices monthly and identify your ageing periods by month names. If you age these invoices by invoice date using any date in July 2019, the invoices will be aged as follows.
 
Total
July
June
May
Pre-May
A-Z Stationery
323.95
323.95
0.00
0.00
0.00
Chelsea Mosset
400.24
400.24
0.00
0.00
0.00
Footloose Dance Studio
482.77
175.82
169.65
112.30
25.00
My Town Realty
352.85
0.00
142.40
210.45
0.00
Totals
1,559.81
900.01
312.05
322.75
25.00
Ageing Percent
0.00
57.7%
20.0%
20.7%
1.6%
In the example above, each ageing period represents the month in which the invoice became due.
Ageing by invoice date using month numbers
Assume you identify your ageing periods by month numbers. The results above would be the same, but with different headings, as follows:
 
Total
1 Month
2 Month
3 Months
3+ Months
A-Z Stationery
323.95
323.95
0.00
0.00
0.00
Chelsea Mosset
400.24
400.24
0.00
0.00
0.00
Footloose Dance Studio
482.77
175.82
169.65
112.30
25.00
My Town Realty
352.85
0.00
142.40
210.45
0.00
Totals
1,559.81
900.01
312.05
322.75
25.00
Ageing Percent
0.00
57.7%
20.0%
20.7%
1.6%
In this example, each ageing period represents the number of months by which the invoices assigned to the period are overdue.
Ageing by month name using invoice terms
If you were to age the transactions based on their invoice terms, the results would be similar; however, your report would show the month in which the invoice falls due.
 
 
Total
Current
July
June
Pre-June
A-Z Stationery
323.95
200.50
123.45
0.00
0.00
Chelsea Mosset
400.24
0.00
400.24
0.00
0.00
Footloose Dance Studio
482.77
175.82
169.65
112.30
25.00
My Town Realty
352.85
0.00
142.40
210.45
0.00
Totals
1,559.81
376.32
835.74
322.75
25.00
Ageing Percent
0.00
24.1%
53.6%
20.7%
1.6%
Ageing by month number using invoice terms
If you were to age the example transactions based on their invoice terms and using month numbers, the results would look like this:
 
Total
Current
1 Month
2 Months
2+ Months
A-Z Stationery
323.95
200.50
123.45
0.00
0.00
Chelsea Mosset
400.24
0.00
400.24
0.00
0.00
Footloose Dance Studio
482.77
175.82
169.65
112.30
25.00
My Town Realty
352.85
0.00
142.40
210.45
0.00
Totals
1,559.81
376.32
835.74
322.75
25.00
Ageing Percent
0.00
24.1%
53.6%
20.7%
1.6%
 

More help options

Top of page