The Aged Debtors report
Use the Aged Debtors report to check how much you’re owed at any point in time by each of your customers. Use the report to keep track of:
- How much your customers owe you.
- How long your customers have owed you money for.
- Which of your customers owe you the most money.
- Due dates for sales invoices (in the Detailed report).
- The credit limit you’re giving to your customers.
What the report tells you
The aged debtors report shows you a totalled list of all the invoices your customers haven’t yet paid you for, less any credit notes you’ve issued to your customers and not yet refunded.
It helps you find out how much money you can expect to receive from each customer, and the total amount that should reach you by a specific date.
The aged debtors report divides your unpaid invoices out by time period so you see the amount you are due to be paid 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 includes the VAT because that’s how much money you will receive from your customer – even though you don’t get to keep it all.
Why is it important
The aged debtors report gives you an insight into your business’s financial health.
Use the report to understand how quickly, on average, your customers pay you, how effective you debt management processes are, how many customers owe you money and for how long, which customers are unlikely to ever pay you and which ones are more likely to be late payers.
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 customers
- From Reporting
, choose More.
- Select Aged Debtors.
- Choose how to sort the report
- by Name to see the amount owed by each customer alphabetically.
- by Outstanding amount to see who owes you the most first.
- Click Calculate.
For a single customer
Enter the customer name in the Search box.
Up to a specific date
You may want to run a the report to show the total amount due at a point in time in the past. This is often required by your Accountant for auditing purposes.
Comparing the aged debtors 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 customers or other analysis type
If you have set up group analysis types, you can run the filter the report to just show your aged debts by the group names.
For example, you might have grouped your customers by their location, or salesperson.
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 debtors report
A negative amount shows on the report when your customer has 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 debtors report only shows the gross value of your customer debt. Some businesses like to see the net and VAT amount separately so they can check their net income and how much they owe in tax.
To find this in Accounting, use the sales 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 Sales, choose Sales Invoices.
- Set the date range to match your aged debtors report.
- From More, change the Status to Outstanding.
- Select the settings icon on the left of the column headers, and select Net, 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.