Aging for Accounts Receivable
The age of an invoice is the number of days between the invoice date and the aging date.
Invoice Date and Due Date
On some aging reports, such as the AR Aged report, you can substitute the due date for the invoice date to begin the invoice aging calculation.
Usually, the invoice date or due date used for aging is entered by the user who posts the invoice when the invoice is first issued.
When the invoice is first issued, the original invoice date and due date are the same for invoiced amounts at all work breakdown structure levels for which the invoice is posted. Changes that you make to the date or due date of a posted invoice and/or its retainage billing may impact the aging of the invoice, as described below.
Aging Options for the AR Aged Report
To determine how aging occurs on the AR Aged report, use the Aging Date and Age Using settings on the General tab of the AR Aged Options dialog box for the AR Aged report (in ).
| Age Using Option | Description |
|---|---|
| Invoice Date | Select this option to calculate the age of an invoice as the difference between the invoice date and the aging date. |
| Due Date | Select this option to calculate the age of an invoice as the difference between the invoice due date and the aging date. If you select this option and the report includes invoices that do not have due dates, the invoices without due dates are aged using the invoice date.
When you age invoices by due date, an invoice is aged using the oldest due date among the outstanding (unpaid) invoiced amounts of all work breakdown structure levels for which the invoice was posted. |
Invoice Review and Project Review
In the Invoice Review and Project Review applications, invoice aging uses the invoice date. You cannot use the due date.
Aging Date
You typically enter the aging date for aging receivables when you run an aging report or view the aged invoices in Project Review or Invoice Review. If you do not enter an aging date, Deltek uses today's date.
Select an aging date on the General tab of the AR Aged Options dialog box for the AR Aged report (in Reporting) and on the AR Options dialog box in the Invoice Review and Project Review applications.
| Aging Date Option | Description |
|---|---|
| Today's Date or Current Date | Receivables are aged based on the date on which the report is run. |
| Period End Date | Receivables are aged based on the last day of the active accounting period in which the report is run. |
| Specific Date | Receivables are aged based on the date that you select in the Specific Date field. |
How Modifying the Invoice Date or Due Date for Existing Invoices Affects Aging
If you modify an invoice in Transaction Entry after the invoice is posted, a warning message displays, telling you that the invoice is already entered. When you modify an invoice amount, you usually use the same invoice date and due date as the date on the original invoice. However, you can modify the invoice Date or Due Date fields on the Invoices form in Transaction Entry. The modified dates that you enter are used for aging receivables.
If you modify only the tax section of an invoice in Transaction Entry, the invoice date and due date are not updated.
When an Invoice Has Invoiced Amounts at Different Work Breakdown Structure Levels
If you want to change the invoice date and/or due date for a posted invoice in Transaction Entry, you must make the same date changes for invoiced amounts at all work breakdown structure levels to which the invoice was originally posted. If you do not, you will have multiple dates recorded for the invoice, which will affect the aging of the invoice. When there are different invoice/due dates for invoiced amounts at different work breakdown structure levels of an invoice, the oldest invoice or due date determines the age of the invoice.
Example: Invoice number 123 was originally entered with invoice amounts posted to phase 1 and phase 2. The invoice date for the invoice is February 1. In April you modify phase 1 of the invoice in the Transaction Entry and change the date in the invoice Date field from February 1 to April 1. After you post the modification to the invoice, invoice number 123 has two invoice dates: February 1 (for phase 2) and April 1 (for phase 1). The AR Aging report uses the oldest date (February 1) as the invoice date to calculate the aging of the invoice.
Use the AR Ledger report to help you identify all of the work breakdown structure levels of an invoice that you must change when you modify a posted invoice's invoice and/or due date.
Change the invoice date and/or due date for invoiced amounts at each work breakdown structure level of an invoice in Transaction Entry. You must enter each work breakdown structure level of the invoice separately in Transaction Entry and change the date on the Invoice form.
How Retainage Billing Affects Aging
The date of a retainage invoice can affect invoice aging. The retainage invoice date is the date that you enter in the Invoice Date field on the Billing Session Options dialog box when you create a retainage invoice. The retainage invoice date is used to age an invoice only when the outstanding amount due for the invoice is less than or equal to the outstanding amount of retainage invoices. If the outstanding amount due for the invoice is greater than the outstanding amount of retainage invoices, the aging reports use the original invoice date because the client still owes an amount from the original invoice.
You may have an original invoice that is paid in full with retainage invoices at different work breakdown structure levels with different retainage invoice dates. In this scenario, the outstanding retainage invoice with the oldest retainage invoice date is used to age the invoice.