Aged Payables — Complete User Guide — Two Accounts Web

Comprehensive guide for generating, analysing, and understanding the Aged Payables report — tracking overdue supplier invoices and managing accounts payable aging

Table of Contents

1. What Is the Aged Payables Report?
   • Purpose and Structure
   • The Aging Buckets
2. Enabling from the Customize Menu
3. Field-by-Field Guide
   • Report Header Fields
4. Settings Configuration
   • Suppliers
   • Divisions
5. Creating an Aged Payables Report
6. How the Aged Payables Is Calculated
   • Date Determination
   • Transaction Reads and Matching
   • Invoice Balance Calculation
   • Aging Bucket Logic
   • Opening Balance Handling
   • Credit Handling
   • Division Filtering and Sorting
   • Currency Grouping
   • Sign Convention
7. Drill-Down Capabilities
8. Sample Data and Report Output
   • Sample Setup
   • Aged Payables Output
   • Verification of Calculation
9. Common Issues and Solutions
10. Accounting Regulation Compliance

1. What Is the Aged Payables Report?

The Aged Payables report shows all outstanding supplier invoices grouped by how long they have been overdue. It breaks down each supplier's total balance into aging buckets — currently due, 1-30 days overdue, 31-60 days overdue, 61-90 days overdue, and over 90 days overdue — helping you manage cash flow and prioritise payments.

1.1 Purpose and Structure

The report shows:

• Each supplier — with their outstanding purchase invoices listed individually
• Each invoice — placed in an aging column based on its due date
• Opening balances — aged based on the opening balance entry date
• Available credit — unallocated debit notes and overpayments shown separately
• Total per supplier — sum of all aging buckets minus credit
• Grand total — total outstanding payables across all suppliers

Suppliers can be grouped by currency, sorted by total balance (highest first) or alphabetically by name, and filtered by division.

1.2 The Aging Buckets

2. Enabling from the Customize Menu

The Aged Payables report appears under:

• Reports → Suppliers → Aged Payables

The report is only visible when the Suppliers tab is enabled in Customize Menu. No additional toggle is needed.

3. Field-by-Field Guide

3.1 Report Header Fields

Location: Reports → Suppliers → Aged Payables → New Report

4. Settings Configuration

4.1 Suppliers

Location: Settings → Suppliers

Each supplier's contact details, control account, division, and currency are used in the Aged Payables report. Suppliers without outstanding invoices are not shown.

4.2 Divisions

Location: Settings → Divisions

When a Division is selected on the report, only suppliers assigned to that division appear. Suppliers with no division assigned are excluded.

5. Creating an Aged Payables Report

1. Go to Reports → Suppliers → Aged Payables
2. Click New Report
3. Choose the Date — Today or Custom
4. If Custom, select the Custom Date
5. Optionally select a Division
6. Choose Sort By — Total or Name
7. Enter a Description (optional)
8. Check Show Invoices if you want invoice details expanded by default
9. Click Save
10. The report generates showing each supplier with their aging breakdown and outstanding invoices

6. How the Aged Payables Is Calculated

6.1 Date Determination

The report date determines the aging. If Date = Today, the current date is used. If Date = Custom, the selected CustomDate is used. All aging buckets are calculated relative to this date.

6.2 Transaction Reads and Matching

The system reads all General Ledger transactions up to the report date and runs invoice matching to pair payments against their corresponding purchase invoices:

Transaction Pool = All GL transactions where:
    • Date is on or before the report date
    • The GL account is an Accounts Payable account
    • Invoice matching is applied (payments matched to invoices)

Invoice matching ensures that the outstanding balance for each purchase invoice reflects all payments made against it.

6.3 Invoice Balance Calculation

For each purchase invoice, the balance is calculated as:

Invoice Balance = Sum of (account currency amount) × −1
    for all GL transactions referencing this invoice

A non-zero balance = invoice is still outstanding (included in the report)
A zero balance = invoice has been fully paid (excluded from the report)

The sign is reversed (× −1) because Accounts Payable has a credit-normal balance — invoices are stored as negative amounts (credits). The reversal makes the balance display as a positive amount owed.

6.4 Aging Bucket Logic

Each invoice is placed into an aging bucket by comparing its due date against the report date:

Let Date = Report Date (Today or Custom Date)
Let DueDate = Invoice Due Date

If DueDate >= Date:         → Current (not yet due)
If DueDate < Date AND DueDate >= Date − 30:     → 1-30 Days overdue
If DueDate < Date − 30 AND DueDate >= Date − 60: → 31-60 Days overdue
If DueDate < Date − 60 AND DueDate >= Date − 90: → 61-90 Days overdue
If DueDate < Date − 90:    → 90+ Days overdue

6.5 Opening Balance Handling

Opening balance entries for suppliers are treated as separate line items and aged based on the opening balance entry date, using the same bucket logic as invoices.

6.6 Credit Handling

Debit notes and overpayments that are not linked to a specific invoice are grouped separately as "Available Credit" for each supplier. This amount is shown as a reduction in the Credit column and subtracted from the supplier's total. Unlike AR where Credit reduces the balance, for AP the Credit column shows amounts that reduce what the business owes.

6.7 Division Filtering and Sorting

When a Division is selected, only suppliers whose Division field matches the selected division are included. Suppliers can be sorted by total balance (highest first) or alphabetically by name.

6.8 Currency Grouping

Suppliers are grouped by their assigned currency. Each currency group appears as a separate section with its own subtotal. Suppliers in the base currency appear under the base currency heading.

6.9 Sign Convention

Accounts Payable has a credit-normal balance, which is the opposite of Accounts Receivable. The system handles this by multiplying the balance by −1 so that amounts owed display as positive numbers. A positive amount in the aging report means "the business owes this amount to the supplier."

7. Drill-Down Capabilities

Each invoice amount shown in any aging bucket cell is clickable. Clicking any amount opens the Purchase Invoice document directly, allowing you to view the full invoice details, payment history, and supplier information.

8. Sample Data and Report Output

8.1 Sample Setup

A trading company has three suppliers with the following invoices outstanding as at 31 January 2026:

Opening Balance (1 January 2026)

Invoices Issued

Debit Notes

Aging Bucket Calculation (As at 31-Jan-2026)

Report Date: 31-Jan-2026
Date − 30 = 1-Jan-2026
Date − 60 = 2-Dec-2025
Date − 90 = 2-Nov-2025

Supplier A — OB (1-Oct-2025): 1-Oct < 2-Nov? Yes → 90+ Days ✓
Supplier A — PI-001 (Due 5-Jan): 5-Jan < 31-Jan and ≥ 1-Jan? Yes → 1-30 Days ✓
Supplier A — PI-002 (Due 25-Jan): 25-Jan ≥ 31-Jan? Yes → Current ✓
Supplier B — PI-003 (Due 1-Dec): 1-Dec < 1-Jan and ≥ 2-Nov? Yes → 61-90 Days ✓
Supplier B — PI-004 (Due 15-Jan): 15-Jan < 31-Jan and ≥ 1-Jan? Yes → 1-30 Days ✓
Supplier C — PI-005 (Due 15-Oct): 15-Oct < 2-Nov? Yes → 90+ Days ✓

8.2 Aged Payables Output

Aged Payables — ABC Trading
As at 31-Jan-2026

                              Current   1-30 Days  31-60 Days  61-90 Days  90+ Days  Credit      Total
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
BDT (Base Currency)

Supplier A
  25-Jan-2026 — Invoice #PI-002   115,000                                                      115,000  ¹
  5-Jan-2026 — Invoice #PI-001               57,500                                             57,500  ²
  Opening Balance Entry                                                   15,000                 15,000  ³
                                 115,000    57,500                             15,000           187,500

Supplier B
  1-Dec-2025 — Invoice #PI-003                                    55,000                       55,000  ⁴
  15-Jan-2026 — Invoice #PI-004              23,000                                             23,000  ⁵
  Available Credit                                                                5,000         (5,000) ⁶
                                             23,000                   55,000           5,000     73,000

Supplier C
  15-Oct-2025 — Invoice #PI-005                                                180,000          180,000  ⁷
                                                                               180,000          180,000
                                ───────    ───────    ───────    ───────    ───────   ───────   ───────
                                115,000     80,500          0     55,000    195,000    5,000    440,500  ⁸

Notes:

1. PI-002 (Supplier A): Due 25-Jan-2026. Current (not yet overdue). Balance: 115,000.
2. PI-001 (Supplier A): Due 5-Jan-2026. 1-30 days overdue (26 days). Balance: 57,500.
3. Opening Balance (Supplier A): Dated 1-Oct-2025. 90+ days overdue (122 days). Balance: 15,000.
4. PI-003 (Supplier B): Due 1-Dec-2025. 61-90 days overdue (61 days). Balance: 55,000.
5. PI-004 (Supplier B): Due 15-Jan-2026. 1-30 days overdue (16 days). Balance: 23,000.
6. Available Credit (Supplier B): Debit note of 5,000. Reduces total owed.
7. PI-005 (Supplier C): Due 15-Oct-2025. 90+ days overdue (108 days). Balance: 180,000.
8. Grand Total: 115,000 + 80,500 + 0 + 55,000 + 195,000 − 5,000 = 440,500.

8.3 Verification of Calculation

AGING BUCKET VERIFICATION (as at 31-Jan-2026):

  Supplier A:
    Current:     PI-002 115,000 (Due 25-Jan ≥ 31-Jan) ✓
    1-30 Days:   PI-001 57,500  (5-Jan < 31-Jan and ≥ 1-Jan) ✓
    90+ Days:    OB    15,000   (1-Oct < 2-Nov) ✓
    Total:       187,500 ✓

  Supplier B:
    1-30 Days:   PI-004 23,000  (15-Jan < 31-Jan and ≥ 1-Jan) ✓
    61-90 Days:  PI-003 55,000  (1-Dec < 1-Jan and ≥ 2-Nov) ✓
    Credit:      DN     5,000
    Total:       73,000 ✓ (23,000 + 55,000 − 5,000)

  Supplier C:
    90+ Days:    PI-005 180,000 (15-Oct < 2-Nov) ✓
    Total:       180,000 ✓

GRAND TOTAL:
  Current:    115,000 ✓
  1-30 Days:  57,500 + 23,000 = 80,500 ✓
  31-60 Days: 0 ✓
  61-90 Days: 55,000 ✓
  90+ Days:   15,000 + 180,000 = 195,000 ✓
  Credit:     5,000 ✓
  Total:      115,000 + 80,500 + 0 + 55,000 + 195,000 − 5,000 = 440,500 ✓

DR = CR VERIFICATION:
  Opening Balance:    Dr RE 15,000 / Cr AP 15,000 ✓
  PI-001:             Dr Exp 50,000 + Dr Tax 7,500 = Cr AP 57,500 ✓
  PI-002:             Dr Inv 100,000 + Dr Tax 15,000 = Cr AP 115,000 ✓
  PI-003:             Dr Exp 55,000 = Cr AP 55,000 ✓
  PI-004:             Dr Exp 20,000 + Dr Tax 3,000 = Cr AP 23,000 ✓
  PI-005:             Dr Exp 180,000 = Cr AP 180,000 ✓
  Debit Note:         Dr AP 5,000 / Cr Exp 5,000 ✓

  Total AP: 15,000 + 57,500 + 115,000 + 55,000 + 23,000 + 180,000 − 5,000 = 440,500 ✓
  Report total: 440,500 ✓

9. Common Issues and Solutions

9.1 No Suppliers Appear

Cause: No suppliers have outstanding invoices, or all invoices have been fully paid. Suppliers with zero outstanding balance are excluded.

Solution: Verify that purchase invoices exist and have not been fully paid. Check that the report date is correct — if using a past date, invoices paid after that date will still appear.

9.2 Invoice Shows in Wrong Aging Bucket

Cause: The aging is calculated based on the invoice's due date relative to the report date. Check the due date on the purchase invoice.

Solution: Verify the invoice's due date in the Purchase Invoice document. Payment terms determine the due date.

9.3 Invoice Balance Does Not Match the Purchase Invoice

Cause: The balance shown is the outstanding amount after all payments have been matched. If a payment was applied to the invoice, the balance is reduced.

Solution: Drill into the invoice to see the full payment history. The balance equals the original invoice amount minus all payments allocated to it.

9.4 Opening Balance Does Not Appear

Cause: Opening balance entries are only included if they have a Supplier reference. An opening balance entry created without selecting a specific supplier will not appear.

Solution: When creating opening balance entries for Accounts Payable, ensure the Supplier field is set.

9.5 Available Credit Shows Unexpected Amount

Cause: The Credit column shows unallocated debit notes and overpayments for the supplier that are not linked to a specific invoice.

Solution: Review the debit notes issued to the supplier. Apply outstanding credits to open invoices to reduce specific invoice balances.

9.6 Division Filter Shows No Data

Cause: The selected division has no suppliers with outstanding invoices.

Solution: Remove the Division filter to see all suppliers. Verify suppliers are assigned to the correct Division.

10. Accounting Regulation Compliance

10.1 IFRS 9 — Financial Instruments

10.2 IAS 1 — Presentation of Financial Statements

10.3 IFRS 7 — Financial Instruments: Disclosures

10.4 DR = CR Verification

Sample Data Verification:

  Total outstanding AP:      440,500 Cr (as at 31-Jan-2026)
  Aging breakdown verified:  115,000 + 80,500 + 0 + 55,000 + 195,000 − 5,000 = 440,500 ✓

  All underlying transactions DR = CR ✓
  AP total from GL: 440,500 ✓
  Report total:     440,500 ✓

End of Aged Payables Guide