How to use the accounts receivable aging report
- Enter the report date, the day the aging is measured.
- Choose whether to age invoices from their due date or their invoice date.
- List each open invoice with its customer, invoice date, days to pay and amount still open.
- Read the total open, the part that is past due, the buckets with their shares, and the invoices from oldest to newest.
Formula
due date = invoice date + days to pay
days past due = report date - due date
days old = report date - invoice date
buckets: current, 1 to 30, 31 to 60, 61 to 90, over 90 days
Aging by invoice date uses 0 to 30, 31 to 60, 61 to 90 and over 90 days old. Each bucket adds the amounts in whole cents, and the buckets add up to the total open.
Five open invoices on October 31, 2026
By due date, the invoice due October 2 is 29 days past due and the one due October 20 is 11 days, so both fall in the 1 to 30 bucket for $1,850.00 + $920.50 = $2,770.50. An invoice due on November 9 is not yet due, so $610.00 is current. One due August 29 is 63 days past due ($3,400.00 in the 61 to 90 bucket), and one due July 30 is 93 days past due ($275.25 over 90). The total open is $7,055.75, of which $6,445.75 is past due.
By invoice date, the same five invoices are 59, 41, 93, 6 and 138 days old, which gives $610.00 in 0 to 30, $2,770.50 in 31 to 60, nothing in 61 to 90, and $3,675.25 over 90.
Why aging matters
An aging report shows how long customers take to pay. The older an invoice gets, the less likely it is to be paid, so the buckets help you decide who to call first. A report with most of the money in the current bucket is healthy, and one with a growing share in the oldest buckets signals a collection problem or a dispute.
Many businesses review aging every month and compare it with the month before. Looking at the share of each bucket, not just the amounts, makes months of different sales volume comparable. The table shows both so you can see the trend.
Due date or invoice date
Aging from the due date shows how overdue each invoice is, which is what matters for collecting. Aging from the invoice date shows total age, which is the older and simpler method and treats all invoices alike whatever their terms. Use the one that matches how your business or your accountant reports it.
The buckets use calendar days and the common 30, 60 and 90 day edges. Partial payments, credits and disputed amounts are not modeled, so enter the amount still open. Next steps include a reminder, which the Payment Reminder Generator writes, a customer summary from the Statement of Account Template, an estimate of uncollectible amounts with the Allowance for Doubtful Accounts Calculator, and the Days Sales Outstanding Calculator.
Assumptions and limits
- Dates are valid calendar dates, and no invoice is dated after the report date.
- Days to pay is a whole number from 0 to 3,650. Amounts are above zero with no more than two decimals.
- Buckets use calendar days with the usual 30, 60 and 90 day edges. Partial payments are not tracked.
- Nothing is stored or uploaded. This is a working report, not an accounting record.
Frequently asked questions
What is an accounts receivable aging report?
It is a list of unpaid customer invoices grouped by how old or how overdue they are, usually in buckets of current, 1 to 30, 31 to 60, 61 to 90 and over 90 days. It shows where unpaid money is concentrated.
How do you calculate days past due?
Subtract the due date from the report date. An invoice dated September 2 with 30 days to pay is due October 2, and on October 31 it is 29 days past due.
Should I age from the due date or the invoice date?
Aging from the due date shows how late invoices are and is the more useful view for collections. Aging from the invoice date is simpler. Follow the method your business or accountant uses.
What happens to invoices that are not yet due?
When aging by due date, they go in the current bucket. When aging by invoice date there is no current bucket, and they appear in 0 to 30 days old if recent.