Aging Accounts Receivable
Time
A report or schedule detailing the lengths of time that invoices have been outstanding, in days. Aging helps companies identify which invoices are overdue for payment. This can help with collection efforts and assess the effectiveness of credit policies.
Formula
Typically presented as a table breaking down unpaid customer invoices by date ranges (e.g., 0-30 days, 31-60 days, etc.).
Example
An aging report might show $10,000 in invoices are 0-30 days old, $5,000 are 31-60 days old, and so on.