How To Run an Accounts Payable Aging Report in QuickBooks Online

Accounts payable aging reports are routinely created by accounting software for businesses in order to manage accounts payable balances, identify early payment discounts, and determine the due dates for payments to their suppliers who offer credit periods.

Accounts payable aging reports Comprehend by knowing your company’s trade creditors, vendors or suppliers offering credit terms, outstanding balances, meaning of the payment terms, early payment on which discounts available, and the due and past due dates of the invoices. It is important to comprehend how cash flow and the accounts payable aging report are related.

What is Accounts Payable Aging Report

A crucial accounting document called an accounts payable aging report which provides a breakdown of the owing bills and invoices by vendor and due date. It displays columns with sums divided into Current, ranges for how many days past due, and a column for the total amount. Invoices with the reference number, payment terms, and balance due are displayed in a thorough AP aging report. An accounts receivable report, which specifies the timing of a company’s customers’ payments, is the opposite of an accounts payable aging report.

The accounts payable (AP) aging report, is a report which deals with vendor invoices for purchases and is comparable to the accounts receivable aging report, which is used to compute the sum due on open but unpaid customer bills.

How To Run an Accounts Payable Aging Report in QuickBooks Online

By Using QuickBooks Online, you can run an accounts payable (A/P) aging report by following the instructions in this brief tutorial. You’ll discover how to create an A/P report with default settings and how to customize it to display only the elements you want. We’ll also provide you with a sample A/P aging report that you can refer to while writing your own.

Step 1: Find the Accounts Payable Ageing Summary

Scroll down to what you owe section after selecting Reports from the menu on the left. Choose Accounts Payable Ageing Summary from the choice of reports that appears next.

Step 2: Construct a Simple A/P Ageing Report

Scroll up to find the menu bar, Which has basic configuration choices, from the Accounts Payable Aging Summary screen.

The following fields must be filled out in order to build your A/P report using default settings:

1. Report Period: The A/P report will include a list of your unpaid debts as of the report date you enter.
2. Row and Column: Include all rows and columns; add or hide those with no data; or show non-zero totals only. This setting enables you to include all rows and columns.
3. Aging Method: Depending on whether the report date selected in item A or the date the report is prepared, the number of days a bill is past due can be determined.
4. Days Per Aging Period: While A/P aging reports typically use intervals of 30 days per column, you can change the number of days used.
5. Number of Periods: Set the amount of periods, or columns, which you want to appear in your A/P ageing report.
6. Run’s Report: To make your modifications visible, select this option.
7. Customize: As further detailed in our next part, Step 3, you can click this to further customize your report.
8. Save Customization: To generate and name a new report with the parameters you’ve selected, use the same settings as before.

Step 3: Create a Custom A/P Ageing Report

To further customize your A/P report, select the Customize button (item G in the section before this one).

General

You can enter the time frame here for which you wish to perform the A/P report. There are predetermined alternatives available, including “This Month,” “This Month to Date,” “This Quarter,” and “This Quarter to Date.” If preferred, you may also choose a particular date range.

The report also offers special choices for adding values in tens of thousands of dollars, eliminating zero sums from the report, and selecting how you like to present negative numbers.

Rows/Columns

The rows/columns option’s settings are identical to those in our prior section’s item B.

Aging

The number of periods and days covered for each aging period can be specified in addition to the aging method you choose in Second Step item C.

Filter

With the help of the filters, you may sort the aging report by vendor and location. If you wish to compare the aging of payables for various suppliers or analyze the outstanding bills and payment responsibilities for a certain vendor, use the Vendor filter. If your company has many locations, you should utilize the Location filter.

You must enable location tracking, as shown in Step 4 of our tutorial on configuring advanced settings in QuickBooks Online, if you want to be able to filter your QuickBooks accounts payable aging report by location.

Header/Footer

Select the data that will appear in the header and footer of your AP aging report.

If you uploaded a logo when setting up your business in QuickBooks Online, you have the option to add it at the top of your A/P aging report.

After you’ve finished making changes to your report, click the green Run report button.

Step 4: Export, Print, or Email Your A/P Report (If Required)

By clicking on the icons in the report’s top right corner, you can print, email, or export your report. Your report can be exported in the Excel or PDF formats. You will notice an option to include the report in management reports when you click the export button. Management reports are conveniently accessible documents that owners, managers, and executives of companies can view from a single spot.

A QuickBooks A/P aging report sample is shown below.

Why Accounts Payable Aging Report is Important?

The A/P aging report is a tool for managing your money that gives you a list of your bills organized by how many days they are past due. It often divides the unpaid accounts receivable into categories based on their aging, such as Current invoices due within the specified payment terms, “1-30 Days,” “31-60 Days,” and “61-90 Days.“

The A/P report contains important details including the vendor name, invoice number, due date, and balance outstanding for each account. This report is quite helpful since it helps you prioritize which bills to pay first when you are short on funds and makes sure you don’t accidentally forget to pay a vendor.

The A/P aging report is a tool for managing your money that gives you a list of your bills organized by how many days they are past due. It often divides the unpaid accounts receivable into categories based on their aging, such as Current invoices due within the specified payment terms, “1-30 Days,” “31-60 Days,” and “61-90 Days.“

The A/P report contains important details including the vendor name, invoice number, due date, and balance outstanding for each account. This report is quite helpful since it helps you prioritize which bills to pay first when you are short on funds and makes sure you don’t accidentally forget to pay a vendor.

Some Advantages of AP Aging Reports are:

• Possibility to check the report for mistakes like duplicate invoices before paying.
• Dates for vendor invoice payments should be planned and scheduled to accommodate cash flow and necessary finance.
• Finding early payment discounts and avoiding late payment fees will help you save money.
• Use in your business plan to project the cash flow and balances of the accounts payable.
• Consolidate general ledger, vendor statements received, and aging vendor balances to improve accuracy.

Conclusion

The Accounts Payable (A/P) aging report gives a quick overview of unpaid invoices from vendors and their upcoming due dates, assisting organizations in efficiently managing their cash flow and setting up payment priorities. The Accounts Payable (A/P) aging report is a useful tool for firms to keep track of and manage their unpaid vendor invoices, to sum up. It promotes improved financial decision-making, aids in cash flow management, and offers insights on payment deadlines.

Planning cash flow and needed financing, scheduling vendor payments to pay bills in accordance with company policy, taking advantage of early payment discounts to save money, avoiding late payment fees, and identifying and looking into the causes of past due accounts payable to vendors are all important things to consider when using AP aging reports.

A corporation should take into account its days receivable outstanding (DRO) in relation to its days payable outstanding (DPO) while defining the company policy for setting vendor invoice payment deadlines.

The accounts payable aging report is a great tool for identifying disputes, inaccurate vendor bills that need to be corrected, poor vendor product quality issues, and potential cash flow challenges for your business. A vendor’s bad debt or detrimental delays or stoppage in the shipments of new products for your company could be the outcome of serious cash flow problems.

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