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Aging And Statements

Aging and statements help finance teams review outstanding receivables, prioritise collection work, and explain balance movement to a party.

Open Billing -> Operations -> Aging or Billing -> Operations -> Statements.

Workspace Reference

WorkspaceUser GoalResult
AgingReview overdue receivables by as-of date, party, currency, business unit, aging band, and payment status.Finance can prioritise collections and exposure review.
StatementsReview one party's billing activity over a selected period.Finance can explain opening balance, invoices, payments, adjustments, and closing balance.
InvoicesOpen invoice detail when a balance needs investigation.Users can inspect lines, allocations, credit notes, write-offs, and posting state.
Payments & SettlementReview payment transactions when statement movement depends on actual payment status.Users can distinguish invoice balance from money movement and settlement evidence.

Aging

Aging groups unpaid invoice balances by how long they have been outstanding.

Use aging to answer:

  • who owes us money?
  • how much is current?
  • how much is overdue?
  • which balances need collection follow-up?
  • which parties have old unpaid balances?
  • what was receivable exposure as of a specific date?

Aging Filters

Common aging filters include:

FilterMeaning
As-of dateDate used to calculate invoice age and outstanding balance.
PartyCustomer, member, tenant, supplier, or other billed party.
CurrencyCurrency of the receivable.
Business unitOperating area responsible for the invoice.
Aging bandCurrent, 1-30, 31-60, 61-90, over 90, or configured equivalent.
Payment statusUnpaid, partially paid, overdue, written off, or resolved.

The as-of date matters. Aging can change daily as due dates pass and payments are applied.

Aging Bands

Typical bands are:

BandMeaning
CurrentNot yet overdue.
1-30 daysRecently overdue.
31-60 daysNeeds active follow-up.
61-90 daysHigher collection risk.
Over 90 daysRequires escalation, dispute review, or write-off assessment.

Your organisation may use different band labels or thresholds.

Reviewing Aging

When reviewing aging:

  • confirm the as-of date
  • review large balances first
  • review old balances separately from new balances
  • check if payments were applied after the as-of date
  • check whether credit notes or write-offs are pending
  • confirm whether disputed invoices should be followed up differently
  • export or save the report only after filters are correct

Statements

Statements show a party’s billing activity over a selected period.

A statement can include:

  • opening balance
  • invoices
  • payment allocations
  • credit notes
  • write-offs
  • adjustments
  • closing balance
  • settlement references where available

Use statements when communicating with parties about what they owe and how the balance changed.

Statement Review

Before sending or exporting a statement, confirm:

  • party is correct
  • date range is correct
  • opening balance is expected
  • invoice descriptions are clear
  • payments are allocated correctly
  • credit notes and write-offs are posted where expected
  • closing balance agrees with invoice detail or aging
  • disputed items are explained

Aging Versus Statement

QuestionAgingStatement
Which balances are overdue?YesLimited
What happened over a period?LimitedYes
Which parties need collection follow-up?YesLimited
What should be sent to a customer?SometimesYes
How did the balance move?LimitedYes

Use both together for collection review.

Common Mistakes

MistakeBetter Practice
Sending a statement before payment allocation is updated.Apply confirmed payments first.
Using today’s aging for a historical review.Set the correct as-of date.
Ignoring credit notes awaiting approval.Review pending adjustments before escalation.
Treating an overdue disputed invoice as normal collection.Review dispute notes and assign follow-up.
Sending statements with vague invoice lines.Correct invoice descriptions where policy allows or add explanatory notes.

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