The Aged Creditors report
Use the Aged Creditors report shows you how much you owe your suppliers at any point in time. Use the report to keep track of:
- How much you owe your suppliers.
- How long you’ve owed your suppliers.
- Which of your suppliers you owe the most money to.
- Due dates for purchase invoices (in the Detailed report).
- The credit limit your suppliers are giving you.
What the report tells you
The aged creditors report shows you a totalled list of all the invoices that you haven’t yet paid, less any credit notes you’ve received not yet had refunded.
It helps you find out how much money you can need to pay to supplier, and the total amount that you have to pay by a specific date.
The aged creditors report divides your unpaid invoices out by time period so you see the amount you owe within 30 days, in 30 to 60 days, in 60 to 90 days and in more than 90 days.
When you run an aged report the default periods appear as follows:
|< 30 days||The age of the transaction is between 0 – 29 days.|
|< 60 days||The age of the transaction is between 30 – 59 days.|
|< 90 days||The age of the transaction is between 60 – 89 days.|
|< 120 days||The age of the transaction is 90 – 119 days.|
|Older||The age of the transaction is 120 days or older.|
Don’t forget, if you’re registered for VAT, the report totals include the VAT because that’s how much money you will need to pay your suppliers.
Why is it important
The aged creditors report helps you track the health of your business. Use the report to
Understand how much money you owe at one time and how long the amount has been outstanding.
Identify which suppliers you pay need to first and when you need to pay.
Identify which suppliers offer the best credit terms to help you make the best purchasing decisions.
Tell potential investors how long it usually takes your business to pay invoices.
Change your ageing periods
- From Settings, then Business Settings, choose Record and Transaction Settings.
- In the Customer Defaults section, enter the number of days you want each ageing period to start from in the Ageing boxes.
- Click Save.
The first period is from zero up to the number immediately prior the value you enter in the first box. For example, if you want your first ageing period to start at 40 days, enter 40 in the first box. The report shows transactions that due from 0 to 39 days, then 40 onwards.
Run the report
For all suppliers
- From Reporting, choose More.
- Select Aged Creditors.
- Choose how to sort the report
- By Name to see the amount you owe each supplier alphabetically.
- By Outstanding amount to see who you owe the most money to first.
- Click Calculate.
For a single supplier
Enter the suppliername in the Search box.
Up to a specific date
You may want to run a the report to show the total amount you owe at a point in time in the past. This is often required by your Accountant for auditing purposes.
Comparing the aged creditors report with the trial balance at point in time also confirms that all the transactions have been entered correctly.
When you run the run the report retrospectively (for a date in the past), any payments received after that date are not included, so invoices that have been paid subsequently will show as outstanding.
Enter the required date and choose Calculate.
Include details of unpaid invoices
To include a list of unpaid invoices as well at the total amount outstanding, choose Detailed.
Per group of suppliers or other analysis type
If you have set up Analysis Types to group transactions together, you can run the filter the report to just show your aged creditors by each type.
For example, you might have grouped your suppliers by their location, or grouped your purchases by department or cost centre.
From More, choose the Analysis Type and Category.
Print or export the report
- Select Export then choose one of the following:
CSV – Depending on your Internet browser, the file automatically downloads to your Downloads folder or you’re prompted to save the file. If prompted, browse to where you want to save the file then click Save.
PDF – The PDF opens in a new window or tab, and you can then print or save it from your Internet browser menu.
Negative amounts on the Aged Creditors report
A negative amount shows on the report when you have an outstanding credit note that's not yet been used to pay to an invoice, or not refunded.
If the credit note should be used to pay off an outstanding invoice, go to Contacts to apply it to the correct invoice.
Show the net and VAT amounts on outstanding invoices
Th aged creditors report only shows the gross value of your debt. Some businesses like to see the net and VAT amount separately so they can check their net expenses.
To find this in Accounting, use the purchase invoice list and filter it to show outstanding invoices only. Once filtered, select all the invoices and export the list to PDF or CSV file.
- From Purchase, choose Purchase Invoices.
- Set the date range to match your aged creditors report.
- From More, change the Status to Outstanding.
- Select the settings icon on the left of the column headers, and select Amount Ex VAT, Total VAT. Click Save.
- Click Search.
To print the list
Select the check box at the top of the list to select all invoices.
Choose the Print, PDF or CSV icon from the toolbar.
The balance on a supplier record and the aged creditors report don't match
Many people use the aged creditor report to check that the balance on the a supplier record is also correct. In most circumstances, the two figures should match.
When the figures don't match, this usually because your supplier balance includes all invoices, payments and credit notes, including those dated in the future. Your aged creditors report only shows transactions up to the date specified on the report.
Check that you have chosen the correct date for the aged creditors report. If the date is in the past, the report may not include some more recently dated transactions.