Glossary
What is an ageing report?
One table that tells you who owes how much, and for how long. It is the starting list for every collection call.
Updated
In short
An ageing report groups unpaid invoices or bills by how long they are past due. SimpleERP shows receivables and payables ageing by bucket and by party, read from posted documents, with CSV export.
An ageing report groups unpaid customer invoices or supplier bills by how long they are past their due date, usually in buckets such as not due, 1 to 30 days, 31 to 60 days, 61 to 90 days and over 90 days. It shows at a glance which customers are slow to pay and which supplier dues are pressing, and it is the starting list for every collection call.
Ageing report: a worked example
Lakshmi Steel Furnitures runs its receivables ageing on 30 September 2026:
| Bucket | Amount | Share |
|---|---|---|
| Not due | ₹1,12,400 | 52% |
| 1 to 30 days | ₹58,200 | 27% |
| 31 to 60 days | ₹29,600 | 14% |
| 61 to 90 days | ₹9,800 | 5% |
| Over 90 days | ₹4,800 | 2% |
| Total | ₹2,14,800 | 100% |
Opening the 31 to 60 days bucket shows most of it is one invoice to Sri Murugan Traders. That is the first call of the day; the ₹4,800 over 90 days needs a firmer conversation.
Ageing by due date or by invoice date?
By due date is more useful, because a customer on 45 days' credit is not late at day 40. Ageing by invoice date overstates how overdue good customers are. Make sure each customer's credit days are set, or every invoice is due the day it is raised.
FAQ
Questions, answered
How often should I run the ageing report?
Weekly for receivables is a good rhythm for most small businesses, with a quick look before any large new order on credit. Run the payables ageing before each payment run, so the oldest and most pressing supplier dues are paid first.
What do I do about invoices over 90 days?
Call, then send a statement of account showing every open invoice, then stop further credit until the balance moves. Agree a payment plan in writing if needed. If the amount is truly lost, write it off as a bad debt after recording the collection effort.
Does the ageing report include credit notes and advances?
It should. An unapplied credit note or an advance reduces what the customer owes, so a correct ageing nets them off. Otherwise you chase a customer for money they have already paid or been credited, which damages the relationship.
Is there a payables ageing too?
A payables ageing exists too. It groups unpaid supplier bills in the same buckets. Use it to plan payments, to keep good terms with suppliers who matter, and to make sure MSME suppliers are paid within the legal limit of generally 45 days.
Related
Keep reading
Accounts receivable
Money customers owe for goods and services already invoiced.
Read moreAccounts payable
Money owed to suppliers for goods and services received on credit.
Read moreDebtors ageing report
How to read a debtors ageing report, what each bucket means for action, and a monthly routine built around the share of money over 60 days.
Read more
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