The aging report answers one practical question: how old is the money owed? Instead of a single “due” figure, it splits the outstanding balance by age so you know which amounts need chasing first. It appears at the foot of the Format 4 statement.
The time buckets #
- Current — not yet overdue.
- 1–30 days past due.
- 30–60 days past due.
- 60–90 days past due.
- Over 90 days — the oldest, highest-risk amounts.
A single Amount due figure sums them up and states whether the company will receive or pay.
Worked example #
You are planning your collections for the week.
- You open Al-Karam Traders‘ Format 4 statement and look at the aging report.
- It shows ₨40,000 in 1–30 days, ₨30,000 in 60–90 days, and ₨70,000 Over 90 days — total ₨140,000.
- You focus your call on the ₨70,000 that is over 90 days old, because that is the most at-risk cash.
- You share the statement so Al-Karam can see the same breakdown and settle the oldest amount first.
What this affects #
- The aging report is read-only — it does not change balances; it presents them by age.
- It reflects the contact’s true net position, including any advance the company holds. A contact in overall credit shows nothing overdue.
Frequently asked questions #
How does an amount move into an older bucket?
As time passes, unpaid amounts shift from Current into 1–30, then 30–60, and so on — automatically, based on the invoice dates.
Why does a customer show ₨0 due when they clearly bought from me?
They have paid, or they hold enough advance/credit to cover their invoices. In that case the report may show that you will pay them.
Where do I see aging?
At the bottom of the Format 4 partner ledger.