About Aging Accounts Receivable

The aging of accounts receivable is a critical function. It lets you know how old your customers' unpaid invoices are, indicating the current financial standing of their accounts. To properly age accounts, you must base the aging on a particular date. Using the accounts receivable parameters, you can indicate if you want to age accounts from the invoice posting date, the discount due date, or a user-selected date. The aged receivable totals are calculated and posted to the C-AUX (customer history) file, and displayed in the Customer History window.

Aging updates the ages of your customer's outstanding invoices, providing accurate figures for current balances, and for balances that are over 30, 60, and 90 days old. When you age your customer balances, the following Aging boxes in the Customer Credit tab are updated: Balance, Current, 30 Days, 60 Days, and 90+ Days. The total accounts receivable figures in the (PDA) President's A/R screen are also updated. (For more details concerning the President's screens, see About Performing the Daily Audit.

The aging function is a dedicated procedure. The age-only function sends the posting detail and aged totals to a batch to update the customer balances, but does not print a report. You perform this function in the Accounts Receivable Reports screens.

Note: You can also age your customer accounts while printing a copy of the A/R Trial Balance Report in the (OR) screen. If you want to age your customer accounts while printing a copy of the A/R Trial Balance Report, you must print it without setting limits, and without specifying a location.

Remember that if you age customer accounts while printing this report, it is a dedicated function. Make sure no one uses the software until the procedure is finished. For more information, see the Reports Menu.