Financial reports help businesses see how they're doing and make better decisions. In this series, each article will explain a specific report, covering what it is, why a CPA needs it, how the numbers are calculated, and a simple example to show how it works. Whether it's about tracking income, managing costs, or checking how well your team is working, these articles will give you the basics to make sense of these important reports.
Aged Receivables (AR) Detail
What’s in this Report?
Does include:
Archived, inactive, and deleted clients
If you can’t archive/delete an invoice on this report because the client has already been permanently deleted, submit a ticket through support.
Does not include:
Archived and deleted Invoices
Report type | Column description | Permissions requirements |
Aged Receivables Detail: displays the specific details by client
| Invoice #: unique record number
Invoice Date: date the invoice was created
Due Date: date the invoice is due
Terms: date by which the invoice should be paid
Current: balance owed in the current month
Aging Schedule: how many days an invoice is past due
Total: all outstanding invoices and credits
| Billing Reports, Assigned Clients |
📊 What is an Aged Receivables (AR) Detail Report?
An Aged Receivables (AR) Detail Report is a financial document that provides a more granular view of the outstanding amounts customers owe a business. Unlike the summary report, which only shows totals for each aging category, the detail report lists each individual invoice along with specifics like:
Customer Name: The name of the customer who owes the money.
Invoice Number: The specific number assigned to each invoice.
Invoice Date: The date the invoice was issued.
Due Date: The date by which payment is expected.
Invoice Amount: The total amount of the invoice.
Amount Due: The remaining unpaid balance.
Aging Category: How many days overdue the invoice is (e.g., Current, 31-60 Days, 61-90 Days, Over 90 Days).
👨🏻💼 Why Would a CPA Need It?
A CPA would need this report for several reasons:
Detailed Analysis: The detailed report allows CPAs to drill down into specific transactions. This is useful for investigating issues like discrepancies in payments or identifying problematic accounts.
Customer Account Review: By seeing the exact invoices that make up the total receivables, a CPA can assess the payment history and creditworthiness of individual customers.
Audit and Compliance: During an audit, this report is crucial for verifying that the amounts listed in the Aged Receivables Summary are accurate and supported by individual invoices.
Collections: It helps in managing collections by providing the exact details needed to follow up with customers about specific overdue invoices.
🔢 How is the Math Calculated for This Report?
The math behind the Aged Receivables Detail Report is similar to the summary report but applied at the invoice level:
Invoice Aging: Each invoice is aged by subtracting the invoice date from the current date to determine how many days it has been outstanding. The aging category is then assigned based on this calculation (e.g., 45 days overdue would fall into the "31-60 Days" category).
Amount Due: The report shows the remaining balance for each invoice. If a partial payment has been made, this amount is reduced accordingly.
Categorization: Each invoice is placed into its appropriate aging category (Current, 31-60 Days, etc.).
Summing Up: If you're looking at totals within the report, you can sum the amounts due within each aging category, similar to the summary report. However, this report is more focused on the details of individual transactions rather than just category totals.
For example, suppose a business has the following invoices:
Customer A:
Invoice #101, dated July 1st, $2,000, due August 1st (Current)
Invoice #102, dated June 15th, $3,000, due July 15th (31-60 Days)
Customer B:
Invoice #201, dated May 10th, $1,500, due June 10th (61-90 Days)
Invoice #202, dated April 1st, $1,000, due May 1st (Over 90 Days)
The detailed report would list each of these invoices along with their aging category and remaining balance:
Customer A:
Invoice #101: Current, $2,000
Invoice #102: 31-60 Days, $3,000
Customer B:
Invoice #201: 61-90 Days, $1,500
Invoice #202: Over 90 Days, $1,000
This report helps the business manage and track individual customer debts more closely.