Accounts receivable aging explained

Applies to: 1C:Drive 1.6.1
Related modules: Sales
Created on: January 1, 2025

Objective

1C:Drive version 1.6.1 introduces AR aging report that shows overdue payments for Accounts receivable aging:

Grouped by aging periods (for example, by aging periods “1 – 30 days, 31 – 60 days, 61+ days”)
Calculated based on due dates of each payment

After completing this tutorial, you will:

Know how AR aging report works.
Learn how to set up the report.

Case description

AP computers company has a customer Jonso Corner.
In October 2023, the company places a purchase order and issues an invoice for it. The invoice is expected to be paid in installments, so it has several due dates. In addition, a bank receipt and a credit note are created as well. Sales manager then tracks Accounts receivable by due dates via Accounts receivable aging report.
Let’ s go through the different dates step by step and see what data the Accounts receivable aging report shows on each date.

Key steps

During the tutorial, you will go through the following steps:

Set up Accounts receivable aging report
Fill initial data
Monitor Accounts receivable through AR aging report

Set up Accounts receivable aging report

Let’s start with making a new set of Aging periods for AR aging report. This change is needed to complete the tutorial.
To do this, go to Sales > Catalogs > Aging periods; open the catalog and click Create.
Create a set of Aging periods: “1 – 7; 8-14; 15-30; 31-60; 61+”:

Fill in the Lower bound, days column. Important: you need to fill only the lower bound of each aging period – upper bound is calculated automatically.
Based on Lower bound, days column system automatically fills Aging period description column.
Fill in Description field in the header of the form. The easiest way to do that is to choose Description, automatically generated by system.

Fill initial data

To be able to follow this tutorial, you will need to create the following data items:

Company AP computers
Accounting policy for the company
Customer Jonso Corner
Chain of documents for Jonso Corner:
1. Sales invoice (with payment terms)
2. Bank receipt
3. Credit note

Let’s see how to fill in this data.

Initial settings

Enable multi-business accounting.
To do this, go to Settings > Company and select the Manage multiple companies checkbox.

2. Create a company named AP computers.
To do this, go to Company > Companies and click Create. Then, enter the company details as on the screenshot below and click Save and close.

3. Create accounting policy for the company.
To do this, go to Company > Accounting policy and click Create. Then, enter Effective date as on the screenshot below and click Save and close.

4. Create Bank.
To do this, go to Company > All catalogs > Classifiers > Banks and click Create.
When asked if you want to create bank from bank classifier or create it manually, click No.

Fill the next form as on the screenshow below:

5. Create Bank account for the Company.
To do this, go to Company > All catalogs > Bank accounts, set Company filter to AP Computers and click Create. Then, enter the details as on the screenshot below and click Save and close:

6. Create product.
To do this, go to Company > All catalogs > Products > Products and click Create. Fill in the fields as on the screenshot below and click Save and close:

7. Create Opening balance entry document for inventory. Enter the details as on screenshot below and click Post and close:
To do this, go to Company > See also > Opening balance entry and click Create. Then, enter the details as on the screenshot below and click Post and close:

8. Create customer Jonso Corner.
To do this, go to Company > All catalogs > Counterparties and click Create. Then, enter the details as on the screenshot below and click Save and close:

List of documents

Create Sales order.
To do this, go to Sales > Sales orders and click Create. Then, enter the details as on the screenshot below and click Post and close.

Fill in header and Products tab:

2. Generate Sales invoice from Sales order.
Fill in header and Products tab:

Fill in Payment terms tab:

3. Generate Bank receipt from Sales invoice. Then, enter the details as on the screenshot below and click Save and close:

4. Generate Credit note from Sales invoice. Then, enter the details as on the screenshot below and click Save and close:

5. Create advance Bank receipt for Jonso Corner. The document is needed to check additional features of the report:

Monitor Accounts receivable through AR aging report

Document data

Before we start, let's review data from all the documents that were created for this tutorial:

Operation 1. "Sales invoice 0000-000001 dated 10/15/2023" is created with the following payment terms (see below):

Operation 2. "Bank receipt 0000-000001 dated 11/5/2023" is created on 05.11.2023 for 48 EUR.

Operation 3. "Credit note 0000-000001 dated 12/25/2023" is created on 25.12.2023 for 48 EUR.

Timeline

Partial liabilities from Sales invoice and documents that decrease those liabilities (Bank receipt and Credit note) can be visualized as a timeline:

Report data on different dates

Now that all data is in place, let’s go through the different dates step by step and see what data Accounts receivable aging report shows on each date.

Report generation date = 15.10.2023 (Due date for Partial liability with Due date = 15 Oct, 2023)

Partial liability with Due date = 15 Oct, 2023: Sum = 60 EURO, Report date - Due date = 0 days.
NOTE: Amount to be paid today = 60 EURO, Report date - Due date = 0 days, it is shown as part of the Current column:

2. Report generation date = 16.10.2023

Partial liability with Due date = 15 Oct, 2023: Sum = 60 EURO, Report date - Due date = 1 day, Aging period = 1-7 days

3. Report generation date = 05.11.2023

Bank receipt = 48 Euro is done on 05.11.2023
Partial liability with Due date = 15 Oct, 2023: Sum = 60-48= 12 EURO, Report date - Due date = 21 days, Aging period = 15-30 days
Partial liability with Due date = 31 Oct, 2023: Sum = 36 EURO, Report date - Due date = 5 days, Aging period = 1-7 days

4. Report generation date = 16.11.2023

Partial liability with Due date = 15 Oct, 2023: Sum = 60-48 = 12 EURO, Report date - Due date = 32 days, Aging period = 31-60 days
Partial liability with Due date = 31 Oct, 2023: Sum = 36 EURO, Report date - Due date = 16 days, Aging period = 15-30 days
Partial liability with Due date = 15 Nov, 2023: Sum = 24 EURO, Report date - Due date = 1 day, Aging period = 1-7 days

5. Report generation date = 25.12.2024

Credit note 0000-000001 dated 12/25/2023 is issued
Partial liability with Due date = 15 Oct, 2023 is settled
Partial liability with Due date = 31 Oct, 2023 is settled
Partial liability with Due date = 15 Nov, 2023: Sum = 24 EURO, Report date - Due date = 40 days, Aging period = 31-60 days

Miscellaneous

Add Contract, Document, Order columns to the report

It’s possible to add Contract, Document and Order columns to the report.
To do so, go to 1) Settings -> 2) Advanced -> 3) Structure -> 4) double click on Counterparty, 5) select Contract, Document, Order:

Report with Contract, Document, Order columns enabled looks like this:

Show prepayments checkbox

There is a Show prepayments checkbox in the Quick Access section.
When it is selected, the report shows lines with advance payments that are not used in advance clearing yet and, therefore, refer to contract.
Prepayments are shown as negative liabilities.
Report with Show prepayments checkbox selected looks like this:

This concludes the tutorial. Now you are familiar with the basics of using AR aging report. Thank you for your time!