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Last modified on 12/23/2015 11:04 AM by User.

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Aging

Aging Methods

There are three different ways to set up the aging method parameters used for AR.   These application table settings determine the breakpoints for customer account aging, which can be set by DOC or DUE date, and by DAILY, MONTHLY or PERIOD types of aging. The system utilizes these table settings to perform the aging computations and the presentation of the A/R Aged Trial Balance reports.

  • DOC date bases the aging on the invoice date and the customer’s billing terms.
  • DUE date bases the aging using the due date based on the customer’s billing terms.
  • MONTHLY account aging bases the aging on the number of months.
  • DAILY account aging bases the aging by the number of days until the invoice is due.
  • PERIOD account aging bases the aging by a period, such as 0-30, 31-60, 61-90


 

To set up the table, go to:

  • Accounts Receivable (Module 2)
    • System Management Functions (Task 32)
      • Modify Parameter Files (Sub-task 22)
        • Aging and Statement Control (Selection 2)

The following is a sample table set up to use DOC date and the MONTHLY type of aging.  Most customers use this method.   

The aging reports that use these table settings will present the aging buckets like this:    MAY/xx     APR/xx     MAR/xx     FEB/xx

The table is set up like this:

------------------- AGING parameters -------------------------------------

AGE'BY=DOC                                   Age by DOC date or DUE date

TYP'OF'AGE=MONTHLY                Type of account aging: DAILY or MONTHLY or PERIOD

BRK'PNT'L1=4                           1st aging breakpoint  LOW

BRK'PNT'H1=4                                                             HIGH

BRK'PNT'L2=3                           2nd aging breakpoint LOW

BRK'PNT'H2=3                                                             HIGH

BRK'PNT'L3=2                           3rd aging breakpoint LOW

BRK'PNT'H3=2                                                             HIGH

BRK'PNT'L4=1                           4th aging breakpoint LOW

BRK'PNT'H4=1                                                             HIGH

BRK'PNT'L5= 0                           5th aging breakpoint LOW

BRK'PNT'H5= 0                           ;                                 HIGH

BRK'PNT'L6=1                           6th aging breakpoint LOW

BRK'PNT'H6=1                                                             HIGH

BRK'PNT'L7=2                           7th aging breakpoint LOW

BRK'PNT'H7=2                                                             HIGH

BRK'PNT'L8=3                           8th aging breakpoint LOW

BRK'PNT'H8=3                                                             HIGH

BRK'PNT'L9=4                           9th aging breakpoint LOW

BRK'PNT'H9=4                                                             HIGH

 

This table is set up to age from the DOC date, and for a DAILY type of account aging.

The aging reports that use this table will present the aging buckets like this:   0-30      31-60      61-90     91-120

The table is set up like this:

 ------------------- AGING parameters -------------------------------------

AGE'BY=DOC                                   Age by DOC date or DUE date

TYP'OF'AGE=DAILY                        Type of account aging: DAILY or MONTHLY or PERIOD

BRK'PNT'L1=99999                    1st aging breakpoint    LOW

BRK'PNT'H1=91                                                              HIGH

BRK'PNT'L2=90                          2nd aging breakpoint   LOW

BRK'PNT'H2=61                                                               HIGH

BRK'PNT'L3=60                          3rd aging breakpoint    LOW

BRK'PNT'H3=31                                                                HIGH

BRK'PNT'L4=30                          4th aging breakpoint    LOW

BRK'PNT'H4=1                                                                  HIGH

BRK'PNT'L5=0                            5th aging breakpoint    LOW

BRK'PNT'H5=30                                                                HIGH

BRK'PNT'L6=31                           6th aging breakpoint   LOW

BRK'PNT'H6=60                                                                HIGH

BRK'PNT'L7=61                           7th aging breakpoint   LOW

BRK'PNT'H7=90                                                               HIGH

BRK'PNT'L8=91                           8th aging breakpoint  LOW

BRK'PNT'H8=120                                                             HIGH

BRK'PNT'L9=121                          9th aging breakpoint LOW

BRK’PNT’H9=99999                                                     HIGH

 
Note how the 0-30 above matches the break points: BRK’PNT’L5=0 and BRK’PNT’H5=30.  These could be made 0 to 45, or 0 to 60, or really any range (within reason) for the break.

 


This table is set up for aging by the DOC date, for a PERIOD type of account aging.

The aging reports that use this table will present the aging buckets like this:  MAY/xx     APR/xx     MAR/xx     FEB/xx

The table is set up like this:

------------------- AGING parameters -------------------------------------

 AGE'BY=DOC                                  Age by DOC date or DUE date

TYP'OF'AGE=PERIOD                     Type of account aging: DAILY or MONTHLY or PERIOD

BRK'PNT'L1=99999                     1st aging breakpoint   LOW

BRK'PNT'H1=91                                                              HIGH

BRK'PNT'L2=90                          2nd aging breakpoint   LOW

BRK'PNT'H2=61                                                              HIGH

BRK'PNT'L3=60                          3rd aging breakpoint   LOW

BRK'PNT'H3=31                                                              HIGH

BRK'PNT'L4=30                          4th aging breakpoint  LOW

BRK'PNT'H4=1                                                                HIGH

BRK'PNT'L5=0                            5th aging breakpoint   LOW

BRK'PNT'H5=30                                                              HIGH

BRK'PNT'L6=31                           6th aging breakpoint LOW

BRK'PNT'H6=60                                                              HIGH

BRK'PNT'L7=61                           7th aging breakpoint LOW

BRK'PNT'H7=90                                                              HIGH

BRK'PNT'L8=91                           8th aging breakpoint LOW

BRK'PNT'H8=120                                                            HIGH

BRK'PNT'L9=121                          9th aging breakpoint LOW

BRK'PNT'H9=99999                                                        HIGH