Customer Account Summary Inquiry Age Days Calculation Logic
Q - In A/R Customer Account Summary Inquiry, what is the logic on a partially paid invoice? See example below:
In the above example, invoice number AXI990 was partially paid on 6/18/21. That is 49 days after the due date of 4/28/21. Today is 7/1/21 and the invoice is not fully paid. So the correct age days should be 64 days. Does the aging date on a specific invoice or document stop after the first payment is applied to it? We'd prefer it if the aging continued until the document was fully paid.
What is the logic?
A - In the following areas that are related to the aging calculation:
- The aging report will continue to show the balance in the correct aging column.
- The nightly aging calculation that updates the 4 buckets continues to work correctly with this scenario.
- Field “77. Av Dy Pst Due Dt YTD” works correctly because it excludes partially paid invoices.
There have been discussions on this subject before. The conclusions were as follows:
- Most of the time, when there’s a partial payment, the balance amount would be small. The likely scenario of a not fully paid invoice is due to a dispute about freight, a pricing discrepancy due to a discount argument…etc. These tend to be small amounts.
- Because our assumption is that (1.) is the majority, we don’t want to give the wrong impression to credit manager and display a large number of age days for a small disputed amount. For this reason, we calculate the age of partially paid invoices based on the partial payment date.