Choose the aging basis
Due-date aging measures how long an invoice has been overdue. Invoice-date aging measures time since issuance, which may include the agreed credit period. State the basis clearly so teams do not confuse older invoices with late payments.
Use distinct buckets
A due-date report might group balances as:
- Current: not past due
- 1-30 days past due
- 31-60 days past due
- 61-90 days past due
- 91 or more days past due
Use a consistent reporting date and documented treatment of due-today invoices.
Read the remaining balance
Hypothetical example: A $1,000 invoice due September 1 has a $400 applied payment. On September 21, its remaining $600 is 20 days past due and belongs in the 1-30 bucket.
Reconcile receipts, credits, due-date changes, and disputes before acting. Do not age the original amount after part has been paid.
Use aging for follow-up
Review older balances for errors, disputes, payment promises, and permitted next steps. Aging supports prioritization and cash forecasting, but does not establish legal collectibility or guarantee future receipts.