See who owes you money and how long it has been outstanding. Paste or open a list of invoices with their amounts and payments, and the report sorts every open balance into aging buckets, totals them by customer, charts the result and estimates an allowance for doubtful accounts.
Last updated:
Aging by customer
Open invoices, oldest first
Allowance for doubtful accounts
Aging method: bucket total × estimated loss rate. The rates are examples; edit them to match your collection history.
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How to use the Accounts Receivable Aging Report
Set the as-of date, usually today or a month-end, and choose whether to age by invoice date or by due date.
Paste your open invoices with a header row such as Customer, Invoice, Date, Amount, Paid, Due. You can copy them straight from a spreadsheet or use Open CSV.
Check the message line for skipped rows (missing date or amount) and fully paid invoices that were left out.
Read the report: bucket totals, the customer aging table and the oldest invoices in the detail list.
Adjust the loss rates if you want an allowance estimate, then download the CSV or print the report.
How the aging report is calculated
Open balance = invoice amount − payments and credits applied.
Age = as-of date − invoice date (calendar days).
Days past due = as-of date − due date. With no due date, due date = invoice date + default terms.
Bucket share = bucket total ÷ total receivables × 100.
Average age = Σ(balance × age) ÷ Σ balance, a dollar-weighted figure.
Allowance estimate (aging method) = Σ(bucket total × loss rate).
Example aging schedule and allowance
A business with $50,000 of receivables, aged by days past due, using illustrative loss rates:
Bucket
Balance
Share
Loss rate
Estimated uncollectible
Current (not yet due)
$30,000
60%
1%
$300
1–30 days past due
$10,000
20%
3%
$300
31–60 days past due
$5,000
10%
10%
$500
61–90 days past due
$3,000
6%
25%
$750
Over 90 days past due
$2,000
4%
50%
$1,000
Total
$50,000
100%
$2,850
Under the aging method, $2,850 is the balance the Allowance for Doubtful Accounts should have. If the allowance already holds $1,200, the adjusting entry is a $1,650 debit to Bad Debt Expense and credit to the Allowance.
Using the report to collect faster
Work from the oldest invoice down. Balances over 60 days deserve a phone call, not just another email.
Watch the trend, not one month. If the share in 31+ day buckets grows month after month, tighten terms or credit limits.
Look for partial payments. An old invoice with a partial payment often means a dispute about part of the bill; resolve it so the rest gets paid.
Send statements regularly. A monthly statement listing every open invoice catches missing invoices on the customer's side.
Pair with DSO. Days sales outstanding (receivables ÷ credit sales × days) gives one number for how quickly you collect overall.
Frequently asked questions
What is an accounts receivable aging report?
It is a table of unpaid customer invoices grouped by how long they have been outstanding, usually in 30-day buckets such as 0-30, 31-60, 61-90 and over 90 days. It shows at a glance which customers are paying slowly and how much of your receivables are at risk of not being collected.
Should I age by invoice date or by due date?
Aging by invoice date shows how old each sale is and is common for simple reports. Aging by due date shows how late payments are, with a Current bucket for invoices not yet due, which is more useful when customers have different payment terms. Both are standard; pick one and use it consistently.
How is the age of an invoice calculated?
Age = as-of date − invoice date in calendar days. Days past due = as-of date − due date; a result of zero or less means the invoice is not yet due. When no due date is given, the due date is the invoice date plus the default terms, for example net 30.
How is the open balance calculated?
Open balance = invoice amount − amount paid (including credits applied). Invoices with a zero or negative balance are left out of the buckets; negative balances are reported separately as customer credits. If your file has a single Balance or Open column, it is used directly.
How does the allowance for doubtful accounts estimate work?
This is the aging method: each bucket total is multiplied by an estimated loss rate and the results are added up. Older buckets get higher rates because the chance of collection falls with time. The default rates are only examples; base yours on your own collection history or your accountant's guidance.
What is the average age shown?
It is the dollar-weighted average age of all open balances: the sum of each balance times its age in days, divided by total receivables. Large old invoices raise it more than small ones, which makes it a good single number to track month to month.
Is my customer data uploaded?
No. The invoices are processed in your browser only and are not saved or sent anywhere. Download the CSV or print the report if you need a copy.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.