Reading and interpreting the AR Aging Summary report

The AR Aging Summary report condenses your accounts receivable into rows by customer, with columns showing how much of each customer's balance falls into each aging bracket. Understanding how to read and interpret these columns helps you spot which customers need collection attention and how much money is tied up in overdue invoices.

What the report shows

The report displays a table where:

• Customer (or Contact) column lists the name of each customer who has an outstanding balance.
• Current shows invoices that are not yet due (typically 0 to 30 days old, depending on your term settings).
• 1-30 days shows invoices that are 1 to 30 days overdue.
• 31-60 days shows invoices that are 31 to 60 days overdue.
• 61-90 days shows invoices that are 61 to 90 days overdue.
• 90+ days (or Over 90) shows invoices that are more than 90 days overdue.
• Total shows the sum of all unpaid amounts for that customer across all age buckets.

Each value is displayed in the invoice currency or your company's default currency, depending on your settings.

Why this matters

The aging summary helps you:

1. Identify cash flow risk: Invoices that are 90+ days overdue are a serious collection risk and may never be paid.
2. Prioritize follow-up: Customers with large balances in the oldest buckets should be contacted first.
3. Spot trends: If the same customer always appears in the 60+ days bucket, you may want to tighten their payment terms or payment method.
4. Manage reserves: Finance teams use aging data to estimate bad-debt reserves and write-offs.

How to interpret the columns

• Large balance in "Current": Customer is paying on time; low priority for collection.
• Balance shifting to "1-30 days": Customer may be delayed; gentle reminder is appropriate.
• Significant amount in "31-60 days": Follow up more firmly; check if the invoice was received and approved.
• Anything in "90+ days": High priority. Contact the customer immediately; consider whether the debt is collectable or should be written off.

If a customer has a balance in multiple aging buckets, it usually means they have multiple unpaid invoices from different dates.

Where to see it in Usystems

Go to Reports → Receivables & Payables Reports → AR Aging Summary, then set your report date and click Run. Open in Usystems

You can filter the report by customer, currency, or status to focus on specific accounts or time periods. The report is generated on demand; there is no automatic aging or alert system built in, so you run it when you need the current picture.

Related concepts

• AR Aging Detail report: If you need to see the individual invoices behind a summary total, use the detail version of this report.
• Days Sales Outstanding (DSO): A metric calculated from aging reports to measure how long, on average, it takes customers to pay. Not calculated automatically in Usystems; you can derive it from the aging summary totals.
• Aging date: The date you specify when running the report. All aging calculations are relative to this date, not today's date.

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