Accounts Payable Aging
A report categorizing unpaid supplier invoices by due date, helping companies prioritize payments and manage cash flow while maintaining vendor relationships.
Accounts Payable Aging
A report that categorizes unpaid supplier invoices by due date, typically in 30-day increments, helping companies manage cash flow and prioritize payments.
For instance, a manufacturing company’s aging report might show $100,000 in current payables (not yet due), $20,000 in 1-30 days past due, and $5,000 over 30 days past due, enabling better payment planning and vendor relationship management.
This tool helps treasurers and financial managers forecast cash requirements, identify invoices requiring immediate attention, and monitor overall payables management efficiency. Regular review of aging reports helps prevent missed payments that could damage supplier relationships or result in lost early payment discounts.