A/P Aging

Last Updated: Jun 6, 2019

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Created On : Jun 5, 2019

The accounts payable aging report categorizes payables to suppliers based on time buckets. The report is typically set up with 30-day time buckets, aged from the date the vendor issued its invoice,  Some companies age the invoices based on the due date of the invoices as opposed to the original invoice date.

The accounts payable aging gives an indication of the borrower’s ability to pay its vendors on time and how much it may have that is past due. Not paying vendors on time in accordance with normal business practices is a warning sign of potential financial distress. The accounts payable aging should be reconciled to the accounts payable shown in the company’s balance sheet.