Excel AP aging preparation could result in missing vendor invoices in the aging report or incorrect vendor invoice numbers, due date information, and calculation errors. Small businesses may want to use Excel template spreadsheets to prepare an accounts payable aging report manually. If your company takes an early payment discount, the accounting software will remove the entire invoice amount from the accounts payable aging upon payment. The accounting system considers vendor invoice amounts, credit memos or debit memos issued, and any partial payments to compute the remaining balance due to each vendor. The process of how to prepare an accounts payable aging report includes: categorizing and summarizing totals for unpaid supplier invoices by each vendor name and invoice (in the detail), with columns for Current amounts (not past due), at least 30-day increments of the number of days the payables invoices are past due, and Total.īecause the AP aging only includes invoices with credit terms on account, bills paid immediately by credit cards, cryptocurrency, or cash payment methods aren’t included in the accounts payable aging report.Īccounting software and ERP systems provide the functionality to generate accounts payable aging reports automatically each month as a detail report and summary report. How do you Prepare an Accounts Payable Aging Report? The AP aging report, which applies to vendor invoices for purchases, is similar to the accounts receivable aging report that determines the balance due of open (not yet collected) customer invoices. ![]() ![]() You should also understand the relationship between the accounts payable aging report and cash flow. Understanding accounts payable aging reports requires knowing how much your business owes its trade creditors (vendors or suppliers offering credit terms), what payment terms mean, early payment discounts offered, and when the invoices are due or past due. Understanding Accounts Payable Aging Reports
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