As a business owner, The biggest risk that you will face is when selling products to the customers with an unpaid transaction. If the customers cannot pay the unpaid invoice, It will be causing cash flow problems. And in the end, it will disrupt the operations of the company itself.
To avoid those problems, usually, a company will make reports from the Invoice and Bill Aging from the transaction that has not been paid. The Invoice and Bill Aging reports will be created based on the length of time counted after due dates from an Account Receivable or Account Payable which is created by the unpaid transaction. With this kind of report, the company will be able to see all the customers or suppliers who have an unpaid invoice or bill and the length of time of how long they have not paid the unpaid transaction.
You can see the Reports from the Invoice Aging and Bills Aging to see the time counted after due dates or we also call it as Age from all the Customers Invoices or Suppliers Bills that have not been paid. To see the Reports from Accounts Receivable Aging and Account Payable Aging, you can follow the steps below:
I. Due Setup for Invoice or Bill Aging Reports
You can change the Due Setup on the Debt & Invoice/Bill Aging menu. You can access the Debt menu and then click more options, and click Due Setup.
Then you can set up the Due for the length of time that you want to show on the reports right on the image below:
Then, the column appears now as 3 Months:
II. Create Unpaid Sales or Purchasing Through Sell or Buy
Step 1. Select Contact to make a transaction using Later Payment
Step 2. Set the Days Due then click 'OK'
The Invoice Aging or Bill Aging Days Report will be counted after the Days Due from an unpaid transaction if the customer is still not paid the invoice. From the image above, the Invoice Aging Days Report from that unpaid transaction will be counted after 22 Jun 2020.
III. Invoice Aging Report Through Debt Menu
Invoice Aging and Bill Aging are useful when you want to track the length of times passed that counted after Due Dates from Account Receivable or Account Payable made by Customers or Suppliers. You can access this report by clicking the Debt menu like the image down below:
Step 1. Go to Debt Menu and Select more menu property then click on report invoice aging
Step 2. Invoice & Bill Aging Report
From the images above, If the Customer has an unpaid invoice and the invoice is still not been paid after the due days have passed (for example 1 Month after the due days passed), The Customer Invoice Aging will be shown like in the image above.
1. If you have a Debt to the Supplier with a due date, you can look at Debt -> More menu -> Bill Aging
2. If you want to see the detailed report from the Invoice/Bill Aging, you can see it on Debt -> Click on the nominal amount from credit -> And you can see the Age column
You might also like to read this article:
If you want to make payment to an unpaid invoice, you can read this article here
If you want to create AP/AR Collections, you can read the article here
If you want to set the default maximum invoice overdue days when sell, you can read this article here