What is an Aging Report in Accounts Payable?
An Aging Report in Accounts Payable (AP Aging Report) is a financial document that categorizes and summarizes a company’s unpaid vendor invoices based on their due dates. It helps businesses track outstanding obligations, prioritize payments, and manage cash flow effectively.
Structure of an AP Aging Report : The report typically groups invoices into categories (aging buckets) based on the number of days they are overdue:
* 0–30 Days : Invoices that are current or recently due.
* 31–60 Days : Invoices overdue by 1–2 months.
* 61–90 Days : Invoices overdue by 2–3 months.
* 90+ Days : Invoices significantly overdue.
Each entry in the report generally includes :
* Vendor Name
* Invoice Number
* Invoice Date
* Due Date
* Amount Owed
* Aging Category (e.g., 0-30, 31-60 days)
