Aged balance
Sort customer receivables and supplier payables by how overdue they are, to steer collection and payments.
The aged balance spreads the open items of each third party according to how far they are past their due date. On the customer side, it shows what needs chasing first; on the supplier side, what needs paying.
Displaying the aged balance
- Open the Third parties tab.
- Choose Customers or Suppliers.
- Enable Aged balance.
- If necessary, click the "as of …" date to choose another reference date. By default, the balance is drawn up as of today.
The buckets
| Column | Items concerned |
|---|---|
| Not due | The due date has not passed at the reference date. |
| 0-30 d | Due date passed by 1 to 30 days. |
| 31-60 d | Due date passed by 31 to 60 days. |
| 61-90 d | Due date passed by 61 to 90 days. |
| +90 d | Due date passed by more than 90 days. |
| Total | Sum of the five buckets for the third party. |
The last line, Totals, adds up each bucket for all third parties.
How the balance is computed
- NovaFisko takes the unlettered lines of the control account: 400000 for customers, 440000 for suppliers.
- It only keeps the entries dated on or before the reference date, excluding reversed entries.
- For each line, the age is the number of days between the due date and the reference date. If the entry has no due date, the entry date is used as the reference.
- The amount is signed according to the type: for a customer, debit minus credit; for a supplier, credit minus debit.
- The amounts are added up per third party and per bucket. A third party whose total is zero is not shown.
If no item is open, the screen shows "No open item."
An unlettered payment appears as a negative amount in the bucket corresponding to its date. A customer who has paid an invoice without the lettering being done will thus show, for example, 1 210,00 in "31-60 d" and -1 210,00 in "Not due", for a total of zero: it will not be listed. If the amounts do not offset each other exactly, both buckets remain visible.
Making the balance reliable before using it
An aged balance is only right if the due dates and the lettering are.
- Letter. Open the main third parties and run Automatic lettering in their Entries tab.
- Check the due dates. An invoice without a due date ages from its own date: it looks overdue from the next day. Enter the due date when posting, or fill in the Payment terms in the third-party record.
- Process the bank. Book the pending bank transactions: an unbooked payment leaves the invoice open.
The aged balance reflects the accounts at the moment you view it. If recent bank statements have not been processed yet, customers who have paid will still appear overdue. Check the Bank tab before sending reminders.
Taking action
For an overdue customer
- Click the third party to open its record, Entries tab.
- Filter on Open to see the invoices concerned and their due date.
- Use Send reminder on the item to record the reminder level.
For a supplier to be paid
- Spot the items in the overdue buckets.
- Check the supplier's IBAN on its record.
- Make the payment in your banking tool; it will be matched when the statement arrives.
The "Customer receivables > 60 days" check of the Quality tab alerts you without your having to open the aged balance. It counts the unlettered sales invoices dated more than 60 days ago.
Aged balance and third-party balance
| Report | Content |
|---|---|
| Aged balance | Open items broken down by how overdue they are. |
| Customer or supplier balance | For each third party: total debits, total credits, outstanding amount and number of open items at a given date. |
The third-party balance gives the overall view of the outstanding amounts; the aged balance adds the dimension of lateness.
Exporting the aged balance
From the Exports tab, the aged receivables and aged payables reports can be downloaded as PDF, Excel or CSV, at the date of your choice. They are also part of the full dossier of the fiscal year, in the third-party folder.