Aged Accounts Payable Report

An aged accounts payable report sometimes referred to as an aged creditors report, is used as a management tool to monitor the age of the outstanding payables from supplier or vendor invoices, allowing early action to be taken to ensure good trade credit terms are maintained with suppliers, invoices are paid at the appropriate time, and early settlement discounts are taken whenever possible. In addition the aged accounts payable report can be used to help predict cash flow requirements for future accounting periods.

The schedule of accounts payable is produced by analyzing vendor invoices into several different age classifications based on the number of days the invoice is past its due date. For example, if the invoice is unpaid 27 days after its due date it would be placed in the 1-30 days classification column, or if the invoice was unpaid 55 days after its due date it would be placed in the 31-60 days column.

On the report, a sub-total is drawn showing the aged accounts payable for each supplier, and a total line shows the aged accounts payable for the business as a whole. Finally, a line is added to show what percentage of the total outstanding accounts payable is represented by each age classification. For instance, in the example aged accounts payable report below, the amount outstanding between 1 – 30 days is 2,800, and this represents 2,800/15,700 or 17.8% of the total aged accounts payable.

Aged Accounts Payable Report
Supplier Amount Current 1 – 30 31 – 60 > 60
Invoice 1 2,800 2,800
Invoice 2 5,100 5,100
Supplier A 7,900 5,100 2,800
Invoice 3 1,600 1,600
Invoice 4 2,400 2,400
Supplier B 4,000 2,400 1,600
Invoice 5 2,600 2,600
Invoice 6 1,200 1,200
Supplier C 3,800 1,200 2,600
Total 15,700 6,300 2,800 2,400 4,200
Percentage 100.0% 40.1% 17.8% 15.3% 26.8%

A business will normally produce an aged accounts payable report at the end of each accounting period, although with today’s accounting software they can be produced at any time.

The aged accounts payable example report above shows overdue vendor invoices and may mean that the business is placing too much reliance on supplier credit to fund its business or that cash is not being properly controlled.

Aged Accounts Payable Report November 6th, 2016Team

You May Also Like


Related pages


days in accounts payable ratioexcel formula for npvpremium on bonds payable balance sheetweighted average cost of goods solddebt to equity ratio calculation examplebookkeeping process flowchartpayment voucher template pdfbookkeeping for a small business templatestraight line balance methodcalculating times interest earnedconsumable supplyformat ledgerexample of gearing ratiocommon size balance sheet ratiossupplies expense journal entryirrevocable lcsample cash voucherhow to record petty cash expensessample of bookkeepingis unearned revenue a liabilityrevenue recognition formulaaccounts payable ledger templateformula for calculating present value of annuityhow to calculate percentage mark uphow to do fifo methodcalculate beginning inventoryvertical analysis income statement exampledistinguish between allocation and apportionment of overheadsstock valuation equationwhat is the basic accounting equationamortisation of goodwillhow to calculate the payback periodmargin vs markup formulafifo formulaaccounts payable ledger definitionformula for fv of annuityvoucher templatesoperating lease journal entriesgrowing annuityformula for depreciation straight line methodcash receipt journal entrykenexa prove it accounting test answerstotal labor variance formulawhat are closing entriesadvertising expense journal entryfixed factory overheaddouble declining amortizationadjusting entry for suppliescredit note definition accountingannuity function in excelbills payable entrynpv excel formulaexcel pv function10 steps of the accounting cyclecost of finished goods manufactured formulaaccounting debits creditssum of years digits formulaaccounting equation practicestraight line method for calculating depreciationhow to post journal entries to t accountslength of operating cycle formulacredit sales formulaaging of accounts payablepresent value calculator excel templateunit product cost calculatorincome statement cogswhat is unearned revenue classified asexcel template for small business bookkeepingassets employed formulatrial balance proformacash flow perpetuitymarkup ratio formularecording petty cashaccrued revenue entry