Definition
Accounts receivable aging is a report that groups unpaid customer invoices by how many days they are past due, showing which balances are current and which are getting old.
What is accounts receivable aging used for?
Typical buckets are current (not yet due), 1–30, 31–60, 61–90 and over 90 days past due. The older the debt, the less likely it is to be collected, so the report drives collection calls and, at year-end, provisions for doubtful debts. Age invoices from their due date, not the invoice date, or customers on longer credit days will look overdue when they aren’t.
A receivables aging summary
Example- Current
- SAR 410,000
- 1–30 days past due
- SAR 120,000
- Over 90 days past due
- SAR 70,000
Total receivables
SAR 600,000
Both spellings are used: “aging” is common in software and US English, “ageing” in British English. The report sits on top of accounts receivable.