How Vision Determines Accounts Receivable Aging
The age of an invoice is the number of days between the invoice date and the aging date.
Invoice Date and Due Date
Some Vision aging reports, such as the AR Aged report, allow you to substitute due date for invoice date to begin the invoice aging calculation. The invoice date or due date used for aging is typically the invoice date or due date that is entered by the user who posted the original invoice when the invoice was 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 (WBS) levels for which the invoice was posted. Modifications that you make to the date or due date of a posted invoice and/or its retainage billing could impact the aging of the invoice, as described further below.
Age Using Options for the AR Aged Report
The following table contains descriptions of the Age Using options on the General tab of the AR Aged Options dialog box for the AR Aged report (in Reporting > Accounts Receivable).
| Aging Using Option | Description |
|---|---|
| Invoice Date | This option calculates the age of an invoice as the difference between the invoice date and the date that you select in the Aging Date section on the General tab of the AR Aged Options dialog box. |
| Due Date | Select this option to calculate the age of invoices as the difference between the invoice due date and the date that you select in the Aging Date section on the General tab of the AR Aged Options dialog box. If you select the
Due Date 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, Vision ages an invoice using the oldest due date among the outstanding (unpaid) invoiced amounts of all work breakdown structure (WBS) levels for which the invoice was posted. |
Invoice Review and Project Review
Invoice aging that you see in Invoice Review (in Accounting > Accounts Receivable) and Project Review (in the Accounting application) uses the invoice date, which you cannot change to the due date.
Aging Date
Usually you 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 the entry of an aging date is not an option, Vision uses today's date as the aging date.
The following table contains the aging date options that you can select for aging invoices. These options are on the General tab of the AR Aged Options dialog box for the AR Aged report (in Reporting > Accounts Receivable) and on the AR Options dialog box that you access from Invoice Review (in Accounting > Accounts Receivable) and Project Review (in the Accounting application).
| Aging Date Option | Description |
|---|---|
| Today's Date or Current Date | The receivables are aged based on the date that the report is run. |
| Period End Date | The receivables are aged based on the last day of the active accounting period in which the report is run. |
| Specific Date | The receivables are aged based on the date that you enter in the Specific Date field. |
How Modifying the Invoice Date or Due Date for Existing Invoices Affects Aging
When you modify an invoice in Transaction Entry in the Transaction Center, after an invoice is posted, Vision warns you that the invoice is already entered in Vision with a specific invoice date. Typically when you modify an invoice amount, you want to 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 will be used for aging receivables.
If you modify only the tax section of an invoice in Transaction Entry, Vision does not update the invoice date and due date.
When an Invoice Has Invoiced Amounts at Different WBS 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 WBS levels to which the invoice was originally posted. If you do not change the dates to the same date at all WBS levels of the invoice, Vision will have different (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 WBS levels of an invoice, Vision always uses the oldest invoice or due date to determine 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 made a modification to only phase 1 of the invoice in Transaction Center > Transaction Entry, and you changed the date in the invoice Date field from February 1 to April 1. After you posted the modification to the invoice, invoice number 123 now has two invoice dates: February 1 (for phase 2) and April 1 (for phase 1). The AR Aging report will use 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 the WBS levels of an invoice that you must change when you modify a posted invoice's invoice and/or due date.
You change the invoice date and/or due date for invoiced amounts at each WBS level of an invoice in Transaction Entry. You must enter each WBS level of the invoice separately in Transaction Entry and change the date on the Invoice form and save it.
How Retainage Billing Affects Aging
The date of a retainage invoice can affect aging of the invoice. 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 for the aging of 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, and it has retainage invoices at different WBS levels with different retainage invoice dates. In this scenario, the outstanding retainage invoice with the oldest retainage invoice date is used for aging the invoice.