Receivables ageing
A report that groups unpaid customer invoices by how long they have been outstanding.
What it means in business
A receivables ageing report lists each customer's unpaid invoices in bands, such as not yet due, 1 to 30 days late, 31 to 60, and so on. It shows who owes how much and for how long, so collection effort goes where it matters most.
Example
At month end a distributor sees that three customers account for most of the amount over 60 days. The owner calls them first and holds back new credit until they pay. This is an illustration of normal business use rather than a quoted case study.
How to use it correctly
Run it on a fixed day each week or month, follow up the oldest and largest first, and keep notes of each promise to pay. Use it to set credit limits and to spot customers whose payment is slowing.
Common confusion
An ageing report is not a list of bad debts: most late invoices are paid. It is also only as good as the records behind it, so unapplied receipts and credit notes should be matched first.
Related glossary terms
Written on 24 October 2026 for lamp. Confirm the current rules with the official source or an adviser before relying on it.