Aged Receivables — Complete User Guide — Two Accounts Web

Comprehensive guide for generating, analysing, and understanding the Aged Receivables report — tracking overdue customer invoices and managing accounts receivable aging

Table of Contents

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

1. What Is the Aged Receivables Report?

The Aged Receivables report shows all outstanding customer invoices grouped by how long they have been overdue. It breaks down each customer'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 identify which customers need follow-up and which invoices may be at risk of non-payment.

1.1 Purpose and Structure

The report shows:

• Each customer — with their outstanding 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 credit notes and overpayments shown separately
• Total per customer — sum of all aging buckets minus credit
• Grand total — total outstanding receivables across all customers

Customers 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 Receivables report appears under:

• Reports → Customers → Aged Receivables

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

3. Field-by-Field Guide

3.1 Report Header Fields

Location: Reports → Customers → Aged Receivables → New Report

4. Settings Configuration

4.1 Customers

Location: Settings → Customers

Each customer's contact details, control account, division, and currency are used in the Aged Receivables report. Customers without outstanding invoices are not shown.

4.2 Divisions

Location: Settings → Divisions

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

4.3 Control Accounts

Location: Settings → Control Accounts → Customers

The customer's control account determines how Accounts Receivable transactions are classified in the Cash Flow Statement. The Aged Receivables report always shows outstanding balances regardless of control account settings.

5. Creating an Aged Receivables Report

1. Go to Reports → Customers → Aged Receivables
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 customer with their aging breakdown and outstanding invoices

6. How the Aged Receivables 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 Loading and Matching

The system loads all General Ledger transactions up to the report date and runs invoice matching to pair receipts against their corresponding sales invoices:

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

Invoice matching ensures that the outstanding balance for each sales invoice reflects all receipts received against it. A receipt received after the invoice due date reduces the invoice balance for aging purposes.

6.3 Invoice Balance Calculation

For each sales invoice, the balance is calculated as:

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

A positive balance = amount still outstanding
A zero or fully paid balance = invoice is excluded

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 overdue)

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 customers are treated as separate line items and aged based on the opening balance entry date, using the same bucket logic as invoices. This ensures prior-period balances are correctly categorized by age.

6.6 Credit Handling

Credit notes and overpayments that are not linked to a specific invoice are grouped separately as "Available Credit" for each customer. This amount is shown as a reduction in the Credit column and subtracted from the customer's total.

6.7 Division Filtering and Sorting

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

6.8 Currency Grouping

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

7. Drill-Down Capabilities

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

8. Sample Data and Report Output

8.1 Sample Setup

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

Opening Balances (1 January 2026)

Invoices Issued

Credit Notes

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

Aging Bucket Calculations (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

SI-003 (Due 1-Dec-2025):
  1-Dec < 31-Jan? Yes. 1-Dec ≥ 1-Jan? No. 1-Dec ≥ 2-Dec? No. 1-Dec ≥ 2-Nov? Yes.
  → 61-90 Days bucket ✓

SI-004 (Due 15-Jan-2026):
  15-Jan < 31-Jan? Yes. 15-Jan ≥ 1-Jan? Yes.
  → 1-30 Days bucket ✓

8.2 Aged Receivables Output

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

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

Customer A
  25-Jan-2026 — Invoice #SI-002    100,000                                                     100,000  ¹
  5-Jan-2026 — Invoice #SI-001               50,000                                             50,000  ²
  Opening Balance Entry                                                   20,000                 20,000  ³
                                  100,000    50,000                              20,000        170,000

Customer B
  1-Dec-2025 — Invoice #SI-003                                    75,000                       75,000  ⁴
  15-Jan-2026 — Invoice #SI-004              30,000                                             30,000  ⁵
  Available Credit                                                                10,000      (10,000) ⁶
                                             30,000                    75,000           10,000   95,000

Customer C
  15-Oct-2025 — Invoice #SI-005                                                  200,000       200,000  ⁷
                                                                                  200,000       200,000
                                  ───────   ───────   ───────   ───────   ───────  ───────    ───────
                                  100,000    80,000          0    75,000   220,000   10,000    465,000  ⁸

Notes:

1. SI-002 (Customer A): Due 25-Jan-2026. Current (not yet overdue as at 31-Jan). Balance: 100,000.
2. SI-001 (Customer A): Due 5-Jan-2026. 1-30 days overdue (5-Jan is 26 days before 31-Jan). Balance: 50,000.
3. Opening Balance (Customer A): Dated 1-Oct-2025. 90+ days overdue (1-Oct is 122 days before 31-Jan). Balance: 20,000.
4. SI-003 (Customer B): Due 1-Dec-2025. 61-90 days overdue (1-Dec is 61 days before 31-Jan). Balance: 75,000.
5. SI-004 (Customer B): Due 15-Jan-2026. 1-30 days overdue (15-Jan is 16 days before 31-Jan). Balance: 30,000.
6. Available Credit (Customer B): Unallocated credit note of 10,000. Shown as a reduction in the Credit column, subtracted from total.
7. SI-005 (Customer C): Due 15-Oct-2025. 90+ days overdue (15-Oct is 108 days before 31-Jan). Balance: 200,000.
8. Grand Total: 100,000 + 80,000 + 0 + 75,000 + 220,000 − 10,000 = 465,000. This is the total outstanding Accounts Receivable at 31-Jan-2026.

8.3 Verification of Calculation

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

  Customer A:
    Current:      SI-002 100,000 (Due 25-Jan ≥ 31-Jan) ✓
    1-30 Days:    SI-001 50,000  (5-Jan < 31-Jan and ≥ 1-Jan) ✓
    90+ Days:     OB    20,000  (1-Oct < 2-Nov) ✓
    Total:        170,000 ✓

  Customer B:
    1-30 Days:    SI-004 30,000  (15-Jan < 31-Jan and ≥ 1-Jan) ✓
    61-90 Days:   SI-003 75,000  (1-Dec < 1-Jan and ≥ 2-Nov) ✓
    Credit:       CN    10,000
    Total:        95,000 ✓ (30,000 + 75,000 − 10,000)

  Customer C:
    90+ Days:     SI-005 200,000 (15-Oct < 2-Nov) ✓
    Total:        200,000 ✓

GRAND TOTAL:
  Current:    100,000 ✓
  1-30 Days:  50,000 + 30,000 = 80,000 ✓
  31-60 Days: 0 ✓
  61-90 Days: 75,000 ✓
  90+ Days:   20,000 + 200,000 = 220,000 ✓
  Credit:     10,000 ✓
  Total:      100,000 + 80,000 + 0 + 75,000 + 220,000 − 10,000 = 465,000 ✓

DR = CR VERIFICATION:
  Opening Balances:   20,000 Dr (AR) = 20,000 Cr (RE) ✓
  SI-001:             Dr AR 50,000 / Cr Revenue 50,000 ✓
  SI-002:             Dr AR 100,000 / Cr Revenue 100,000 ✓
  SI-003:             Dr AR 75,000 / Cr Revenue 75,000 ✓
  SI-004:             Dr AR 30,000 / Cr Revenue 30,000 ✓
  SI-005:             Dr AR 200,000 / Cr Revenue 200,000 ✓
  Credit Note:        Dr Revenue 10,000 / Cr AR 10,000 ✓

  Total AR: 20,000 + 50,000 + 100,000 + 75,000 + 30,000 + 200,000 − 10,000 = 465,000 ✓
  Total = Report total ✓

9. Common Issues and Solutions

9.1 No Customers Appear

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

Solution: Verify that sales invoices exist and have not been fully paid. Check that the report date is correct — if using a past date, invoices that were 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. If the due date or report date is incorrect, the invoice falls into the wrong bucket.

Solution: Check the invoice's due date in the Sales Invoice document. Verify the report date is set correctly. Payment terms on the invoice determine the due date — if the terms were changed after invoicing, the original due date is used.

9.3 Invoice Balance Does Not Match the Sales Invoice

Cause: The balance shown is the outstanding amount after all receipts and credit notes have been matched. If a receipt 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 receipts allocated to it.

9.4 Opening Balance Does Not Appear in Aging

Cause: Opening balance entries are only included if they have a Customer reference. An opening balance entry created for "Accounts Receivable" without selecting a specific customer will not appear.

Solution: When creating opening balance entries for Accounts Receivable, ensure the Customer field is set. This links the opening balance to the correct customer for aging.

9.5 Available Credit Shows Unexpected Amount

Cause: The Credit column shows the total of all unallocated credit notes and overpayments for the customer that are not linked to a specific invoice. These are customer-level credits awaiting application.

Solution: Review the credit notes issued to the customer. Apply outstanding credits to open invoices in the Sales Invoice or Credit Note module to reduce specific invoice balances.

9.6 Division Filter Shows No Data

Cause: The selected division has no customers with outstanding invoices, or no customers are assigned to that division.

Solution: Remove the Division filter to see all customers. Verify customers are assigned to the correct Division in Settings → Customers.

9.7 Aging Buckets Use Due Date, Not Invoice Date

Cause: The report uses the invoice's due date for aging, not the invoice date. This is the standard for aged receivables reporting — an invoice is not considered overdue until after its due date.

Solution: This is correct and expected. An invoice issued 60 days ago with 30-day payment terms is only 30 days overdue. If you need aging by invoice date, review the payment terms on each invoice.

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 AR:      465,000 Dr (as at 31-Jan-2026)
  Aging breakdown verified:  100,000 + 80,000 + 0 + 75,000 + 220,000 − 10,000 = 465,000 ✓
  
  All underlying transactions DR = CR:
    Opening Balance:     Dr AR 20,000 = Cr RE 20,000 ✓
    SI-001:              Dr AR 50,000 = Cr Revenue 50,000 ✓
    SI-002:              Dr AR 100,000 = Cr Revenue 100,000 ✓
    SI-003:              Dr AR 75,000 = Cr Revenue 75,000 ✓
    SI-004:              Dr AR 30,000 = Cr Revenue 30,000 ✓
    SI-005:              Dr AR 200,000 = Cr Revenue 200,000 ✓
    Credit Note:         Dr Revenue 10,000 = Cr AR 10,000 ✓

  AR total from GL:          20,000 + 50,000 + 100,000 + 75,000 + 30,000 + 200,000 − 10,000 = 465,000 ✓
  Report total:              465,000 ✓
  Aged Receivables = GL balance ✓

End of Aged Receivables Guide