Financial Terms / vendor aging report

Vendor Aging Report Overview

The Vendor Aging report helps you keep track of all your outstanding balances, sorted by how long each payment has been past due.

How do I calculate the vendor aging report?

At its core, calculating a vendor aging report is a matter of sorting vendor balances by date interval, aging period definition, and any other data filters that may be necessary. To calculate the report, start by gathering the necessary data from the vendor, such as invoice dates, payment terms, and payment amounts. Then, use Sourcetable to format the data into a table and apply the necessary formulas. For example, you can use the SUMIF function to add up all of the unpaid invoices that fall into a certain aging period, or the IF function to list only the unpaid invoices that have been outstanding for more than a certain number of days. Finally, use the SUM function to calculate the total amount due for each aging period.

What is an accounts payable aging report?

An accounts payable aging report is a report used to track how much a business owes vendors.

What does an accounts payable aging report show?

An accounts payable aging report shows how much a business owes each vendor.

What are the benefits of using an accounts payable aging report?

Using an accounts payable aging report can help businesses manage cash flow, plan future expenses, and track how much a business owes other businesses.

Key Points

Vendor Aging Report Provides Insight into Outstanding Payables
A vendor aging report is a critical tool for managing accounts payable. It categorizes outstanding payables to vendors based on the time for which they remain unpaid. This report can help businesses identify overdue payments and manage their cash flow more effectively.
Vendor Aging Report Helps in Vendor Relationship Management
By highlighting overdue payments, a vendor aging report can help a business maintain good relationships with its vendors. Timely payment is crucial for fostering trust and goodwill, and a vendor aging report can help ensure that no payments slip through the cracks.
Vendor Aging Report Aids in Cash Flow Management
By providing a clear picture of when payments are due, a vendor aging report can help a business manage its cash flow more effectively. This can be particularly important for businesses with tight margins or those that operate on a cash basis.
Vendor Aging Report Can Highlight Potential Risks
If a business consistently has a large number of overdue payments, it may indicate deeper financial issues, such as cash flow problems or inadequate financial controls. Regularly reviewing the vendor aging report can help businesses identify and address these issues early.
Vendor Aging Report Can Be Used in Financial Analysis
Alongside other financial reports, the vendor aging report can be used to analyze a company's financial health. Analysts may look at trends in the aging report over time to assess the company's management of its accounts payable.
Sorted By Date Interval
The Vendor Aging Report is sorted by date interval, allowing you to easily track current and past payments and make sure your vendors are paid on time. This report also helps in forecasting cash flow and budgeting.
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