Supplier Aging Reports

Supplier Aging Reports

Supplier Aging Reports in EquiBillBook categorize outstanding supplier balances by how long they have been outstanding, helping you identify overdue payments, prioritize payment schedules, and manage accounts payable effectively. These reports are essential for cash flow management and maintaining healthy supplier relationships.

What is an Aging Report?

An Aging Report categorizes outstanding balances by age:

• Groups payables by number of days overdue or until due
• Shows amounts in different time buckets (Current, 0-30 days, 31-60 days, etc.)
• Helps identify which payments are overdue and for how long
• Provides insights into payment patterns and potential collection issues
• Enables prioritization of payments based on aging

Accessing Aging Reports

To generate supplier aging reports:

1. Navigate to the Reports module from the main menu
2. Click on "Payables Reports" or "Supplier Reports"
3. Select "Supplier Aging Report" or "Aging Analysis"
4. Alternatively, go to Suppliers → "Aging Report"
5. Configure report parameters and filters
6. Click "Generate Report" or "View Report"

Aging Categories

Outstanding balances are categorized into time buckets:

Standard Aging Categories

• Current: Amounts not yet due (due date is in the future)
• 0-30 Days: Amounts due within 30 days or overdue up to 30 days
• 31-60 Days: Amounts overdue 31 to 60 days
• 61-90 Days: Amounts overdue 61 to 90 days
• 90+ Days: Amounts overdue more than 90 days

Custom Aging Periods

Some systems allow custom aging periods:

• Adjust aging bucket ranges (e.g., 0-15, 16-30, 31-45 days)
• Add or remove aging categories
• Configure aging based on business needs

Report Configuration Options

1. Date Selection

Choose the date for aging calculation:

• As of Date: Date as of which aging is calculated (defaults to today)
• Custom Date: Select any specific date
• End of Month: Aging as of the end of a specific month

2. Supplier Selection

Filter by suppliers:

• All Suppliers: Include all suppliers with outstanding balances
• Specific Supplier: View aging for a single supplier
• Multiple Suppliers: Select specific suppliers to include
• Supplier Category: Filter by supplier category or group

3. Additional Filters

Apply additional filters:

• Branch/Location: Filter by branch (if using multi-branch)
• Amount Range: Filter by outstanding amount range
• Include Zero Balance: Include suppliers with zero balance
• Aging Basis: Age based on due date or bill date

Aging Report Layout

Supplier-Level View

Each supplier row shows:

• Supplier Name: Name of the supplier
• Supplier Code: Supplier reference code
• Current: Amount in the "Current" bucket
• 0-30 Days: Amount in the "0-30 days" bucket
• 31-60 Days: Amount in the "31-60 days" bucket
• 61-90 Days: Amount in the "61-90 days" bucket
• 90+ Days: Amount in the "90+ days" bucket
• Total Outstanding: Sum of all aging buckets

Summary Totals

The report includes summary totals:

• Total by Aging Category: Sum of amounts in each aging bucket across all suppliers
• Grand Total: Total outstanding amount for all suppliers
• Percentage Distribution: Percentage of total in each aging category

Detailed View (Bill-Level)

Drill down to see individual bills:

• Click on a supplier to view detailed bill-level aging
• See each purchase bill and its aging category
• View bill details (number, date, due date, amount, outstanding)
• See days overdue for each bill

Understanding Aging Calculation

Aging Based on Due Date

Most commonly used method:

• Aging is calculated from the payment due date of purchase bills
• Current: Due date is in the future
• 0-30 Days: Due date was 0-30 days ago (or due within 30 days)
• 31-60 Days: Due date was 31-60 days ago
• And so on for other categories

Aging Based on Bill Date

Alternative method (less common):

• Aging is calculated from the purchase bill date
• Useful when due dates are not tracked
• Less accurate for payment planning

Using Aging Reports for Payment Planning

1. Prioritize Overdue Payments

Focus on overdue amounts:

• Prioritize payments in the 90+ days category
• Address 61-90 days overdue amounts
• Plan payments for 31-60 days overdue
• Schedule payments for 0-30 days overdue

2. Cash Flow Planning

Plan cash flow requirements:

• Estimate payment requirements for different time periods
• Identify peak payment periods
• Plan cash reserves based on aging distribution
• Forecast payment obligations

3. Supplier Relationship Management

Maintain healthy relationships:

• Identify suppliers with long-overdue balances
• Communicate payment schedules proactively
• Negotiate payment plans if needed
• Ensure critical suppliers are paid on time

4. Risk Assessment

Assess payment risk:

• Identify suppliers with high overdue amounts
• Monitor trends in aging categories
• Assess impact on supplier relationships
• Plan for potential supplier concerns

Exporting Aging Reports

Export aging reports for analysis and sharing:

• Export to Excel: Download report in Excel format for further analysis and manipulation
• Export to CSV: Export data in CSV format for import into other systems
• Export to PDF: Generate PDF reports for printing or sharing with stakeholders
• Print: Print aging reports directly from the system

Comparative Aging Reports

Compare aging across time periods:

• Compare current aging with previous periods
• Track improvements or deterioration in aging
• Identify trends and patterns
• Measure effectiveness of payment strategies

Aging Report Best Practices

• Generate aging reports regularly (weekly or monthly)
• Review aging distribution to identify issues early
• Use aging reports for payment prioritization
• Share aging reports with finance and procurement teams
• Set targets for maximum amounts in each aging category
• Monitor trends in aging categories over time
• Take action on long-overdue amounts promptly
• Use aging reports for cash flow forecasting
• Export and archive aging reports for historical analysis
• Reconcile aging reports with outstanding balance reports

Common Aging Report Use Cases

Monthly Accounts Payable Review

Use aging reports for monthly review:

• Generate report as of month-end
• Review aging distribution
• Identify suppliers requiring attention
• Plan payments for the next month

Cash Flow Forecasting

Use for cash flow planning:

• Estimate payment requirements by time period
• Plan cash reserves
• Forecast payment obligations
• Coordinate with cash flow projections

Supplier Communication

Use for supplier discussions:

• Share aging reports with suppliers
• Discuss payment schedules
• Negotiate payment terms
• Address payment concerns

Related Articles

Learn more about:

• Outstanding Balances
• Viewing Supplier Transactions
• Supplier Statement Generation
• Supplier Payment Reports
• Recording Supplier Payments

Supplier Aging Reports are essential tools for managing accounts payable, prioritizing payments, and maintaining healthy supplier relationships. EquiBillBook provides comprehensive aging analysis capabilities to help you effectively manage supplier payables and optimize cash flow.