A/R Aging Methods and Examples

Important: If you are no longer using Eterm to run your A/R matching with the A/R Aging Bucket Names control maintenance record, then use this control maintenance record to ensure that those old matching rules are ignored. Then, use the Automatic Cash Receipts Options and the Disable Old A/R Matching Rulescontrol maintenance record to achieve the best A/R processing results.

The A/R Aging Method control maintenance record determines the method the system uses to move A/R amounts between aging buckets. The record must be set to one of the following nine methods:

Method	Description
1	Due Date/Days (one month invoice date)
2	Due Date/30 Day Rolling (30 days from invoice date)
3	Due Date/Calendar Month End
4	Due Date/Fiscal Month End
5	Invoice Date/Days
6	Invoice Date/30 Day Rolling
7	Invoice Date/Calendar Month End
8	Invoice Date/Fiscal Month End
9	Due Date/30 Day Rolling (Version 2)

Methods 1 through 4 and 9 are based on the due date calculated from the terms on the invoice, whereas methods 5 through 8 use the invoice date.

The default method is Method 4 - Fiscal Month End. If you elect to use method 5, 6, 7, or 8, the system does not use the Future bucket.

Use the A/R Aging Bucket Names control maintenance record to modify A/R aging bucket names to suit your industry. For example, if you are using an aging method that uses due dates, then some sites change the name of the Current bucket to be "1-30," since those invoices are 1 to 30 days past due.

Examples

The following tables represent how the system calculates the aging bucket dates for each method, based on the following data:

Invoice Date: 06/04/10
Due Date: 07/15/10
Fiscal Month: Closes on the 25th of each month.

Method 1 - Due Date/Days (one month invoice date)

Aging Bucket	Description	Example Dates
Future	Future through the date before the due date.	Anytime through 07/14/2010
Current	From the due date through 1 month from the due date.	7/15/2010 - 08/14/2010
30+	From the next day through 1 month from that date.	08/15/2010 - 09/14/2010
60+	From the next day through 1 month from that date.	09/15/2010 - 10/14/2010
90+	From the next day through 1 month from that date.	10/15/2010 - 11/14/2010
120+	From the next day and later.	11/15/2010 and later

Method 2 - Due Date/30-Day Rolling (30 days from invoice date)

Aging Bucket	Description	Example Dates
Future	Future through the date before the due date.	Anytime through 07/14/2010
Current	From the due date through 30 days from the due date.	07/15/2010 - 08/13/2010
30+	From the next day through 30 days from that date.	08/14/2010 - 09/12/2010
60+	From the next day through 30 days from that date.	09/13/2010 - 10/12/2010
90+	From the next day through 30 days from that date.	10/13/2010 - 11/11/2010
120+	From the next day and later.	11/12/2010 and later

Method 3 - Due Date/Calendar Month End

Aging Bucket	Description	Example Dates
Future	Future through last of the calendar month before the due date.	Anytime through 06/30/2010
Current	During the calendar month in which the due date falls.	07/01/10 - 07/31/10
30+	In the next calendar month.	08/01/10 - 08/31/10
60+	In the following calendar month.	09/01/10 - 09/30/10
90+	In the following calendar month.	10/01/10 - 10/31/10
120+	in the following fiscal calendar month and later	11/01/10 and later

Method 4 - Due Date/Fiscal Month End

Aging Bucket	Description	Example Dates
Future	Future through last date of the fiscal month before the due date.	Anytime through 06/25/2010.
Current	During the fiscal month in which the due date falls.	06/26/10 - 07/25/10
30+	In the next fiscal month.	07/26/10 - 08/25/10
60+	In the next fiscal month.	08/26/10 - 09/25/10
90+	In the next fiscal month.	09/26/10 - 10/25/10
120+	In the next fiscal month and later.	10/26/10 and later

Method 5 - Invoice Date/Days

Aging Bucket	Description	Example Dates
Future	Future through the date before the invoice date.	Anytime through 06/03/10
Current	From the invoice date through one month from the invoice date.	06/04/10 - 07/03/10
30+	From the next day through one month from that date.	07/04/10 - 08/03/10
60+	From the next day through one month from that date.	08/03/10 - 09/01/10
90+	From the next day through one month from that date.	09/02/10 - 10/01/10
120+	From the next day and later.	10/04/10 and later

Method 6 - Invoice Date/30 Days Rolling

Aging Bucket	Description	Example Dates
Future	Future through the date before the invoice date.	Anytime through 06/03/2010
Current	From the invoice date through one month from the invoice date.	06/04/10 - 07/03/10
30+	From the next day through 30 days from that date.	07/04/10 - 08/02/10
60+	From the next day through 30 days from that date.	08/03/10 - 09/01/10
90+	From the next day through 30 days from that date.	09/02/10 - 10/01/10
120+	121 days past the due date and beyond.	10/02/10 and later

Method 7 - Invoice Date/Calendar Month End

Aging Bucket	Description	Example Dates
Future	Future through the last date of the calendar month before the invoice date.	Anytime through 05/31/10
Current	During the calendar month in which the invoice falls.	06/01/10 - 06/30/10
30+	During the next calendar month.	07/01/10 - 07/31/10
60+	During the next calendar month.	08/01/10 - 08/31/10
90+	During the next calendar month.	09/01/10 - 09/30/10
120+	From the next day and later.	10/01/10 and later

Method 8 - Invoice Date/Fiscal Month End

Aging Bucket	Description	Example Dates
Future	Future through the last date of the fiscal month before the invoice date.	Anytime through 05/25/10
Current	During the fiscal month in which the invoice falls.	05/26/10 - 06/25/10
30+	During the next fiscal month.	06/26/10 - 07/25/10
60+	During the next fiscal month.	07/26/10 - 08/25/10
90+	During the next fiscal month.	08/26/10 - 09/25/10
120+	From the next day and later.	09/26/10 and later

Method 9 - Due Date/30 Day Rolling Version 2

Aging Bucket	Description	Dates
Future	Future through the day before the due date.	Anytime through 07/15/10
Current	From the day after the due date for the next 30 days.	07/16/10 - 08/14/10
30+	From the next day through 30 days from the date.	08/15/10 - 09/13/10
60+	From the next day through 30 days from the date.	09/14/10 - 10/13/10
90+	From the next day through 30 days from the date.	10/14/10 - 11/12/10
120+	From the next day and later.	11/13/10 and later