This support note describes how to analyse the account balances of your customers and suppliers.
When viewing or reporting your aged payables and receivables, you can view transactions based on:
- the transaction date, or
- the credit terms
You can use either method or combine both. For example, you can age your sales by invoice date and your bills by credit terms.
To view transactions in the Analyse Receivables and Analyse Payables window
- Click Analysis (in the bottom right corner of any command centre) and choose Receivables or Payables. The Analyse Receivables or Analyse Payables window appears.
- Click Filters. The Ageing Date window appears. Select a calculation method option:
- Calculate Overdue Since Invoice/Bill Date. This enables you to view the transaction based on how old each transaction is.
- Calculate Overdue Using Invoice/Bill Terms. This enables you to view when the transaction payment is due or how overdue it is.
- Click OK. The Analyse Receivables or Analyse Payables window reappears, with transactions listed in aged periods according to the ageing calculation method you selected.
To view transactions in ageing reports
- Go to the Reports menu and choose Index to Reports. The Index to Reports window appears.
- Click the Purchases or Sales tab and select:
- Ageing Summary (or Aged Payables [Summary]/Aged Receivables [Summary]) to view the total outstanding balance in aged periods for each supplier or customer.
- Ageing Detail (or Aged Payables [Detail]/Aged Receivables [Detail]) to view details of each outstanding bill/invoice (as well as totals) for a supplier or customer.
- Click Customise. The Report Customisation window appears. In the Ageing Method field, select the calculation method:
- No. of Days Since P.O./Invoice Date. This enables you to view transactions based on how old each transaction is.
- Days Overdue Using Purchase/Invoice Terms. This enables you to view when the transaction payment is due or how overdue it is.
- Click Display or Run Report (as applicable). The Report Display window appears, showing transactions based on your selections above.
Analysing your aged transactions may alert you to an error in a transaction's credit terms. For example, two sales recorded for a customer on the same day may appear in different aged columns in an aged receivables report, indicating that the transactions have different credit terms.
If you need to, you can change a transaction's credit terms by opening and editing the transaction. Note that transactions need to be changeable in your company file before you can do this.
To make transactions changeable
- Go to the Setup menu and choose Preferences.
- Click the Security tab.
- Deselect the option Transactions CAN'T be Changed; They Must be Reversed. Note that when you create your company file, this option is not selected.
To edit the credit terms of a recorded transaction
- Find and open the transaction you want to edit.
- Click the Terms zoom arrow (in the top-right of the window). The Credit Terms window appears.
- Make your changes and click OK.
The following example shows the difference between aged transaction reporting based on invoice date and ageing based on invoice credit terms.
The aged period preferences are set to 30, 60 and 90 days.
Suppose you have the following invoices:
On 1 December, you run the Aged Receivables (Detail) report. The first time you run the report, you select to view transactions based on the invoice date.
Aged by invoice date
From this report, you can see that:
- the oldest invoice is for Island Way Motel
- more than half of your outstanding invoices (51.1%) were recorded more than 30 days ago.
You run the report again, and this time select to view transactions based on the customer's credit terms.
Aged by days overdue
From this report, you can see that:
- the most overdue invoice is for Leisure Landscape Nursery
- two A-Z Stationery Supplies invoices were recorded on the same day, but one is overdue and the other is not, indicating differing credit terms
- most of your outstanding customer payments are overdue.