How to Generate a Customer Aging Report

Overview:

The Customer Aging Report is a key tool in managing accounts receivable. It provides a breakdown of outstanding customer invoices grouped into time periods (e.g., Current, 1–30 Days, 31–60 Days, and beyond).

This report helps businesses:

• Monitor overdue invoices
• Evaluate the effectiveness of credit policies
• Identify collection issues early
• Maintain a healthy cash flow

Key Term: Aging refers to classifying unpaid invoices by how long they have remained outstanding.

Scenario:

The Accounts Receivable Officer is preparing for the year-end financial review. Management has requested a 12 Months Customer Aging Summary to assess customer payment patterns, identify overdue balances, and evaluate overall collection performance. The officer will generate this report to provide a high-level view of receivables by customer.

Procedure:

1. In the navigation pane, go to Reporting > Report Center.
    
2. Select Customer tab.
    
3. Expand Customer Aging by clicking the + icon.
    
4. Select one of the following Report Options/Format:

   • 6 Months Customer Aging – Payables by transaction for the last 6 months

   • 12 Months Customer Aging – Payables by transaction for the last 12 months

   • 6 Months Customer Aging Summary – Consolidated balances over 6 months

   • 12 Months Customer Aging Summary – Consolidated balances over 12 months

5. Filter the report using the available options:

   • As of – Include all posted transactions up to the specified date.

   • Customer – Select a specific Customer or leave blank for all
   • Agent/ Doc Agent– Filter by assigned purchaser, if applicable.
   • Area - Filter by Customer area or region.
   • Category - Segment Customers (e.g., corporate, retail) 
   • Control A/C – Filter by Accounts Payable control accounts

   • Project Filter – Narrow results by project:

     • All Projects: Includes all transactions across projects.

     • No Project: Includes only transactions not linked to a project.

     • Main Project: Shows transactions for parent projects only.

     • Sub Project: Displays data for sub-projects.

   • Title View By – Display aging buckets by Month (default) or Day

   • Exclude – Exclude Customers by status (Active, Inactive, Prospect, Suspended)

   • Sort By – Sort results by Customer # or Customer Name
      
6. Choose Preview to generate a printable version, or Inquiry to view the interactive report (if available).
   

7. Export the report to PDF or Excel, or print for distribution.
   

Application:

You can use the Customer Aging Report to:

• Track overdue invoices and improve collection efficiency
• Assess customer payment behavior to refine credit policies
• Support financial reviews and audits with accurate receivables data
• Forecast cash inflows by analyzing expected collections
• Identify high-risk customers with long-outstanding balances
• Measure collection performance against company targets