Ageing (PL settings)
These settings help you manage your outstanding supplier debt. Choose your ageing periods and default payment terms here.
The ageing periods are used on your aged debts reports and statements.
The payment terms are used to calculate when invoices are due to be paid.
Generally supplier debts are aged over three periods, which are typically 30, 60 and 90 days. The last aged period holds both the debts in the period and those debts that exceed the period.
You can have a minimum of 3 and a maximum of 8 ageing periods.
To enter or view Ageing settings
Open: Purchase Ledger > Utilities > Ledger Setup > Ledger Settings | Ageing.
Open: Purchase Ledger > Utilities > Ledger Setup > View Ledger Settings | Ageing
Enter or view the following settings:
These terms are applied each time you create a new supplier account. They indicate when invoices are due to be paid.
You can change these payment terms on individual supplier accounts.
The Purchase Ledger combines the Basis of terms with the Number of days to calculate the due date on invoices.
| Basis of terms |
This determines the date from which the number of days credit is calculated. Once set you can monitor payments due and optimise the credit days available. You can set the ledger to calculate days credit from the:
Ageing by end of month indicates that an invoice is due in a specified number of days after the end of the month in which it was dated. For example, if your Basis of terms on an account is set to end of month, and the number of days to 15, an invoice entered with a transaction date of 01/10/2009 will calculate a due date of 15/10/09. Ageing by calendar month means that invoices are due on the same day the following month. For example, if your basis of terms is set to calendar monthly and an invoice is entered with a transaction date of 01/10/06, this will calculate a due date of 01/11/06. Due date calculations are only made for invoice transactions. Credit notes always retain the same due date as the entered transaction date. |
| Number of days | If your supplier usually offers you a Number of days credit, enter this figure here. You can enter up to 999 days. |
Choose the number of days for each of your ageing periods.
| Debtors periods start after |
Enter the number of days you want for each ageing period. This is used on your aged reports and statements and letters. |
| Due date periods start after |
Enter the number of days you want analysed in your due date report, for each ageing period. |
Ageing for reports (days) ties in with the Ageing periods. They are used for the Aged Debtors and Due Date reports, and Statements and Debtors letters.
Example of ageing on the Due Date report
Your Ageing for reports (days) is set up with 3 ageing periods of 30, 60 and 90 days, and your due date periods start after is set to 1,31, and 61.
The due date on a invoice is set to 30/04/2009.
Run your Due Date report specifying a base date for ageing as 01/05/2009. The invoice appears in the column for one day overdue.
Run the same report with a base date for ageing as 31/05/2009. The invoice appears in the 31 day overdue column on the report.
Example of ageing on the Aged Debtors report
Your Ageing for reports (days) is set up with 3 ageing periods of 30, 60 and 90 days, and your due date periods start after is set to 1,31, and 61.
An invoice has a transaction date of 30/04/2009 and a due date of 30/05/2009.
Run the Aged Debtors report by transaction date with a base date for ageing of 29/05/2009. The invoice appears in the current column.
Run the report by transaction date but with a base date of 30/05/2009. The invoice appears in the 30 day column.