Customer Aging Reports

Customer Aging Reports

Customer aging reports categorize outstanding customer balances by how long they have been outstanding. This guide will help you understand, generate, and use aging reports in EquiBillBook to manage collections, assess credit risk, and improve cash flow.

What is a Customer Aging Report?

A customer aging report shows:

• Outstanding balances grouped by age (Current, 30 days, 60 days, 90+ days)
• How long invoices have been outstanding
• Total amounts in each aging bucket
• Percentage of receivables in each category
• Customer-wise aging breakdown

Why Use Aging Reports?

Aging reports help you:

• Identify overdue accounts that need collection follow-up
• Assess credit risk and customer payment behavior
• Prioritize collection efforts
• Monitor accounts receivable health
• Make informed credit decisions
• Track collection performance over time

Accessing Aging Reports

To generate a customer aging report:

1. Navigate to Reports from the main menu
2. Click on Receivables Reports or Customer Reports
3. Select "Customer Aging Report" or "Aging Analysis"

Alternatively, access from:

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

Understanding Aging Categories

Aging reports typically categorize balances into:

1. Current (Not Due)

• Invoices not yet due
• Within payment terms
• Expected to be paid on time

2. 0-30 Days

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

3. 31-60 Days

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

4. 61-90 Days

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

5. 90+ Days

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

Step-by-Step Report Generation

Step 1: Set Report Date

Select the date for aging analysis:

• As of Date: Date to calculate aging (usually today or month-end)
• All invoices are aged based on their due dates relative to this date

Step 2: Select Customers

Choose customers to include:

• All customers with outstanding balances
• Specific customer or customer group
• Customers by category or location
• Customers with balances above a certain amount

Step 3: Configure Aging Periods

Customize aging buckets:

• Default periods: Current, 0-30, 31-60, 61-90, 90+
• Customize periods as needed (e.g., 0-15, 16-30, etc.)
• Set aging based on invoice date or due date

Step 4: Generate Report

Click "Generate Report" or "View Aging"

Understanding the Aging Report

The report displays:

• Customer Name: Name of the customer
• 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

Report Summary

The aging report includes a summary showing:

• 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

Drilling Down into Details

Click on any amount 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

Filtering and Sorting

Filter and sort the aging report:

• Sort by: Customer name, total outstanding, or specific aging bucket
• Filter by: Customer category, location, or balance range
• Show only: Customers with balances in specific aging buckets
• Minimum Balance: Show only customers above a certain amount

Exporting Aging Reports

Export aging data for analysis:

• Export to Excel: Export aging report to Excel for further analysis
• Export to PDF: Generate PDF report of aging analysis
• Print Report: Print aging report
• Email Report: Send aging report via email

Using Aging Reports for Collections

Use aging reports 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

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

Interpreting Aging Reports

Healthy Aging Profile

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

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)

Related Features

Aging reports are connected to:

• Outstanding Balances: View total outstanding amounts
• Customer Statements: Generate statements for aging accounts
• Collection Management: Track collection efforts
• Credit Limits: Review credit decisions based on aging

Next Steps

After reviewing aging reports, you can:

• Generate customer statements for overdue accounts
• Prioritize collection follow-up activities
• Review and adjust credit limits
• Analyze trends and set collection targets
• Export reports for management review
• Take action on high-risk accounts

Customer aging reports in EquiBillBook provide valuable insights into your accounts receivable, helping you manage collections effectively, assess credit risk, and maintain healthy cash flow.