Aging Analysis

Aging Analysis

Aging Analysis categorizes outstanding customer balances by how long they have been outstanding, helping you identify overdue accounts, prioritize collections, and assess credit risk in EquiBillBook. This guide will help you generate and use aging analysis reports effectively.

Understanding Aging Analysis

Aging Analysis helps you:

• Categorize receivables by age
• Identify overdue accounts requiring collection
• Assess credit risk and customer payment behavior
• Prioritize collection efforts
• Monitor accounts receivable health
• Make informed credit decisions

Accessing Aging Analysis

To generate aging analysis:

1. Navigate to the Reports module from the main menu
2. Click on Receivables Reports → Aging Analysis or Aging Report
3. Select as of date and filters
4. Click "Generate Report"

Alternatively, access from:

• Customers → Select customer → "Aging Report"
• Dashboard → Aging summary widget
• Accounts → Accounts Receivable Aging

Understanding Aging Categories

Aging analysis categorizes balances into:

1. Current (Not Due)

• Invoices not yet due
• Within payment terms
• Expected to be paid on time
• No collection action needed

2. 0-30 Days

• Invoices due or overdue by 0-30 days
• Recently due accounts
• May need gentle reminders
• Low collection priority

3. 31-60 Days

• Invoices overdue by 31-60 days
• Requires follow-up
• Moderate collection priority
• Send payment reminders

4. 61-90 Days

• Invoices overdue by 61-90 days
• High collection priority
• May require stronger collection actions
• Review credit terms

5. 90+ Days

• Invoices overdue by more than 90 days
• Highest collection priority
• May require collection agency or legal action
• Review credit limits

Report Information Displayed

Aging Summary

The summary shows:

• Total Receivables: Sum of all outstanding balances
• Total by Age: Total amount in each aging bucket
• Percentage by Age: Percentage of receivables in each bucket
• Number of Customers: Count of customers in each bucket
• Average Days Outstanding: Average age of receivables
• Overdue Amount: Total overdue (30+ days)

Customer-wise Aging

For each customer, the report shows:

• Customer Name: Customer details
• Total Outstanding: Total amount due
• Current: Amount in current period
• 0-30 Days: Amount in 0-30 day bucket
• 31-60 Days: Amount in 31-60 day bucket
• 61-90 Days: Amount in 61-90 day bucket
• 90+ Days: Amount over 90 days
• Total: Sum of all aging buckets

Invoice Details by Age

For invoices in each aging bucket:

• Invoice Number: Sales invoice reference
• Invoice Date: Date of invoice
• Due Date: Payment due date
• Days Overdue: Number of days past due
• Invoice Amount: Total invoice amount
• Outstanding Amount: Remaining balance
• Aging Bucket: Current aging category

Report Parameters and Filters

As of Date Selection

Select the date for aging calculation:

• Today: Current date
• Month End: End of current month
• Quarter End: End of current quarter
• Custom Date: Select specific date
• Financial Year End: End of financial year

Customer Filter

Filter by customer:

• All Customers: Include all customers
• Specific Customer: Select one or more customers
• Customer Group: Filter by customer category
• Customers with Balance: Only customers with outstanding
• Customers in Specific Bucket: Filter by aging bucket

Aging Bucket Filter

Filter by aging bucket:

• All: Include all buckets
• Current: Not yet due
• 0-30 Days: 0-30 days overdue
• 31-60 Days: 31-60 days overdue
• 61-90 Days: 61-90 days overdue
• 90+ Days: Over 90 days overdue
• Overdue Only: Only overdue buckets (30+ days)

Location/Branch Filter

Filter by location or branch:

• All Locations: Include all locations/branches
• Specific Location: Select one or more locations
• Location Group: Filter by location category

Minimum Balance Filter

Filter by balance amount:

• All Balances: Include all amounts
• Minimum Balance: Show only customers above threshold
• Balance Range: Filter by balance range

Customizing Aging Periods

You can customize aging periods:

• Default Periods: Current, 0-30, 31-60, 61-90, 90+
• Custom Periods: Define custom aging buckets
• Aging Basis: Age by invoice date or due date
• Period Labels: Customize period names

Report Format and Layout

Summary Section

The report typically includes:

• Header: Report title, as of date, company information
• Aging Summary: Total by aging bucket
• Percentage Summary: Percentage distribution
• Customer Aging Table: Customer-wise aging breakdown
• Invoice Details: Detailed invoice listing by age
• Charts and Graphs: Visual representations (if available)
• Footer: Report generation date, page numbers

Grouping Options

Group aging by:

• Customer
• Location/Branch
• Aging Bucket
• Payment Terms
• Invoice Type

Generating and Viewing Reports

Generate Report

1. Select as of date
2. Configure aging periods (if customizing)
3. Apply filters as needed
4. Select grouping options
5. Click "Generate Report" or "View Report"
6. Review the generated report

Report Preview

The report preview shows:

• Complete aging summary in preview format
• Aging summary at the top
• Customer-wise aging breakdown
• Detailed invoice listing
• Visual charts and graphs
• Options to export or print

Drilling Down into Details

Click on any amount or customer to view:

• List of invoices in that aging bucket
• Invoice details (number, date, due date, amount)
• Days overdue for each invoice
• Payment history and notes
• Customer statement

Exporting Reports

Export Formats

Export reports in various formats:

• Excel (XLS/XLSX): For analysis and manipulation
• PDF: For printing and sharing
• CSV: For data import to other systems

Export Process

1. Generate and preview the report
2. Click "Export" or "Download"
3. Select export format
4. Choose export options (columns, grouping, etc.)
5. Download the exported file

Printing Reports

To print reports:

• Generate and preview the report
• Click "Print" or "Print Preview"
• Review print preview
• Adjust print settings (orientation, margins, etc.)
• Select pages to print if needed
• Print or save as PDF

Using Aging Analysis for Collections

Use aging analysis to:

• Prioritize Collections: Focus on 90+ day accounts first
• Identify Patterns: Find customers with consistent late payments
• Set Targets: Set goals for reducing aging buckets
• Track Progress: Monitor improvement in aging over time
• Generate Statements: Create statements for overdue accounts
• Review Credit: Review credit terms for high-risk customers

Interpreting Aging Reports

Healthy Aging Profile

• Most receivables in Current and 0-30 day buckets
• Minimal amounts in 90+ day bucket
• Consistent collection performance
• Low percentage of overdue receivables

Warning Signs

• Increasing amounts in 60+ day buckets
• High percentage of receivables in overdue categories
• Specific customers consistently in high aging buckets
• Rapid aging (quick movement to higher buckets)

Best Practices

• Generate aging reports regularly (weekly or monthly)
• Review aging trends over time to identify issues
• Focus collection efforts on highest aging buckets
• Set targets for each aging bucket
• Share aging reports with management regularly
• Use aging data to make credit decisions
• Compare aging reports month-over-month
• Take action on accounts in 90+ day bucket immediately
• Export reports for record-keeping
• Keep exported reports for audit purposes

Troubleshooting

Report shows no data:

• Check as of date is correct
• Verify filters are not too restrictive
• Ensure customers have outstanding balances
• Check location/branch selection

Aging calculation incorrect:

• Check invoice due dates are correct
• Verify payment terms are set
• Review aging basis (invoice date vs due date)
• Check as of date selected

Totals don't match expected:

• Verify all invoices are recorded
• Check payment entries are correct
• Review payment allocation
• Verify invoice status

Aging Analysis in EquiBillBook provides valuable insights into your accounts receivable, helping you manage collections effectively, assess credit risk, and maintain healthy cash flow.