Customers Aging
Overview
Below is a business-focused explanation of the Customers Aging report, written for practical use in Dafater Accounts.
Report: Customers Aging
Module: Dafater Accounts
Based on: Sales Invoices
1. What Business Information This Report Provides
The Customers Aging report shows how much money customers owe your business and how long those amounts have been outstanding.
It breaks unpaid or partially paid sales invoices into time buckets (aging periods), helping you understand:
- Total outstanding receivables
- Which customers are paying on time
- Which invoices are overdue and by how many days
- Potential cash flow risks
This report answers a key business question:
“How much money is stuck in unpaid customer invoices, and where should we focus our collection efforts?”
2. When and Why to Use This Report
When to Use It
- During weekly or monthly receivables reviews
- Before cash flow planning or forecasting
- While preparing for follow-ups with customers
- Before extending additional credit or new sales to customers
- During month-end or quarter-end financial reviews
Why It’s Important
- Improves cash flow management
- Helps reduce bad debts
- Supports better credit control decisions
- Identifies high-risk customers early
3. Key Columns and What They Mean for Business
Customer
- The name of the customer with outstanding invoices
- Helps identify who owes money and prioritize follow-ups
Invoice Number
- The specific sales invoice that is unpaid or partially paid
- Useful for customer communication and dispute resolution
Posting Date / Invoice Date
- When the invoice was issued
- Helps track how long the amount has been outstanding
Due Date
- The agreed payment deadline
- Used to determine whether the invoice is overdue
Outstanding Amount
- The unpaid balance still owed by the customer
- This is the amount that impacts your cash flow
Aging Buckets (Example)
- 0–30 Days
- 31–60 Days
- 61–90 Days
- 90+ Days
These show how long the outstanding amount has been overdue, helping you assess payment behavior and risk.
Total Outstanding
- Total unpaid amount per customer or for the entire report
- Indicates overall receivables exposure
4. Available Filters and Their Business Purpose
Company
- View receivables for a specific business entity
- Useful for organizations with multiple companies
Customer
- Focus on a specific customer’s outstanding balances
- Ideal before customer meetings or negotiations
Posting Date / Due Date
- Analyze receivables as of a specific date
- Useful for historical or period-based analysis
Aging Based On (Posting Date or Due Date)
- Posting Date: Understand invoice age from creation
- Due Date: Focus on payment delays and credit discipline
Sales Person / Territory (if available)
- Review receivables by responsible sales team or region
- Helps evaluate collection effectiveness
5. How to Interpret the Results for Business Decisions
High Amounts in 0–30 Days
- Normal business activity
- Indicates healthy, recent sales
Increasing Amounts in 31–60 or 61–90 Days
- Warning sign of delayed payments
- Action may be needed: reminders or follow-ups
Large Balances in 90+ Days
- High risk of bad debt
- Consider:
- Escalation to management
- Payment plans
- Stopping further credit sales
- Legal or recovery actions
Customer-Level Patterns
- Customers consistently appearing in higher aging buckets may require:
- Revised credit terms
- Advance payments
- Credit limit reductions
6. Common Use Cases and Scenarios
Credit Control & Collections
- Prioritize customers and invoices for follow-up calls or emails
- Assign collection tasks to finance or sales teams
Cash Flow Planning
- Estimate how much cash can realistically be collected soon
- Identify potential cash shortages early
Customer Credit Review
- Decide whether to allow new sales on credit
- Adjust payment terms based on payment history
Management Reporting
- Share receivables health with management
- Support strategic decisions on growth and risk
Audit & Financial Review
- Validate receivable balances
- Ensure overdue amounts are actively monitored
Summary
The Customers Aging report in Dafater Accounts is a critical tool for managing receivables, protecting cash flow, and controlling credit risk.
By regularly reviewing this report, businesses can take timely action, improve collections, and maintain healthier customer relationships.
Report Information
- Module: Dafater Accounts
- Related DocType: Sales Invoice
- Report Type: Script Report
- Standard: Yes