A/R and A/P aging
Reading the aging buckets, using them for collections and payment planning, and keeping them tied to the control accounts.
How-toFor Business owners, Bookkeepers, Portal clients, Firm staff
Reading the buckets
Aging groups open documents by how far past due they are, measured from the due date rather than the issue date. Current means not yet due; the later buckets are progressively worse news.
| Bucket | On A/R this means | On A/P this means |
|---|---|---|
| Current | Not yet due. Healthy. | Not yet due. Pay on terms. |
| 1–30 | Slightly late. Usually a process delay on their side. | Slightly late. Check why. |
| 31–60 | Chase it. Something is wrong — a disputed invoice or a missing PO. | You are damaging the relationship. |
| 61–90 | Escalate. Collection probability drops sharply here. | Expect service problems. |
| Over 90 | Assess collectibility seriously. | Investigate — this is often a bill that was already paid, or a duplicate. |
Using them
For collections:
- Work by amount within bucket, not strictly by age — one large 45-day invoice matters more than ten small 90-day ones.
- Confirm the invoice was actually received before escalating; a surprising share of "non-payment" is non-receipt.
- Check for unapplied cash on the customer before chasing — they may have paid.
- Record what happened on each call somewhere the next person will find it.
For payables:
- Plan payment runs from the A/P aging by due date rather than from whoever chased.
- Review anything past 60 days for duplicates and already-paid bills.
- Watch for vendors whose terms you are systematically missing — that is a negotiating position you are giving away.
Common questions
The A/R aging total must equal the A/R control account, and likewise for A/P. A difference means either something posted directly to the control account, or a payment is recorded but unapplied.
Check unapplied cash first — it is the more common cause and the faster to clear.
See alsoReceiving and applying paymentsMy statements look wrong
The payment was recorded but not applied to that invoice. Open the payment and apply it.
See alsoReceiving and applying payments
Was this useful?