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Aged Payables Report

This guide explains how the Aged Payables Report works in plain language. Whether you're a business owner or a finance manager, this report is your key to managing your outgoing cash flow and maintaining good relationships with your suppliers.

What is the Aged Payables Report?

Think of the Aged Payables Report as a "To-Do List" for paying bills. It shows you exactly which suppliers (vendors) you owe money to and, more importantly, how long it has been since the bill was due.

Why does this matter?

  1. Cash Flow Management: Helps you plan when money needs to leave your bank account.
  2. Avoid Late Fees: Identifies bills that are coming due or are overdue so you can pay them first.
  3. Vendor Relationships: Paying on time keeps your suppliers happy, which can lead to better terms in the future.

Where to Find It

Navigate to: Accounting → Reports → Aged Payables

💡 Tip: Look for the Help button in the top-right corner—it opens this guide!

Understanding the Report

To use the report, you need to understand the concept of Aging Buckets. These separate your debts by how old they are based on the Due Date of the vendor bill.

Bucket What it Means Action Needed
Current Bills not yet due. Plan for payment soon.
1-30 Days 1 to 30 days past the due date. Pay these now to avoid becoming significantly overdue.
31-60 Days 31 to 60 days past due. Contact the vendor if there's a delay; prioritize this payment.
61-90 Days 61 to 90 days past due. High priority. Late fees or service suspension may occur.
90+ Days More than 90 days overdue. Critical. You risk damaging your credit or vendor relationship.

Using the Report Filters

To get the most out of the report, use the available filters:

As Of Date

This determines the "snapshot" date for the report.

  • Scenario: Today is April 10, but you want to see exactly what you owed on March 31 for your month-end accounts. Set the "As Of Date" to March 31.

Making It Make Sense: A Real Example

The Situation: You run a retail store. You check the Aged Payables Report on November 1st.

What you see:

  • Supplier A (Office Supplies): you owe $200 in the Current bucket.
    • Translation: You bought paper recently, and the bill isn't due yet. No rush.
  • Supplier B (Electronics Wholesaler): you owe $5,000 in the 31-60 Days bucket.
    • Translation: This bill was due in September. It is overdue! You should pay this immediately to avoid issues with your next order.

Troubleshooting

Q: Why isn't a vendor bill showing up?

A: Check the following:

  1. Is the bill Posted? Draft bills do not appear in financial reports.
  2. Is the As Of Date correct? If the bill date is after the "As Of Date", it won't show.
  3. Has it been Paid? If you recorded a payment, the balance will be zero (or reduced).

Q: Why does a vendor have a negative balance?

A: This usually means you have overpaid them or have a Debit Note (vendor credit) that hasn't been used yet. It means the vendor owes you money or credit towards a future purchase.

Best Practices

  • Review Weekly: Check this report before doing your weekly payment run.
  • Prioritize: Always pay overdue bills first to avoid penalties or disrupted service.
  • Reconcile: Ensure the "Grand Total" matches the "Accounts Payable" balance on your Balance Sheet.