Aging Periods

The aging periods Reference File record (category P44) defines the aging periods used to classify all invoices, and debit / credit memos for all customers in the system.  On-account payments are not aged.  If aging is not required, the age flag on the aging periods record is set to 'N'-No.  This indicates that all invoices entered for all customers are considered currently due.  If the age flag is set to 'Y'-Yes, aging is performed. 

If aging is performed, each open item is classified into one of six aging periods:

·      Future (typically 30 days into the future)

·      Current

·      Age period 1 (typically 1 to 30 days past due)

·      Age period 2 (typically 31 to 60 days past due)

·      Age period 3 (typically 61 to 90 days past due)

·      Age period 4 (typically over 90 days past due)

Four values on the aging periods record define the length of each period.  The days to future value defines the number of days in the current period.  If the days to future value is 30, invoices due up to 30 days after the aging date are considered currently due.  Invoices due over 30 days after the aging date are considered future receivables.  Note:  The due date of an invoice or debit/credit memo is used to age these items.

Aging periods 1, 2, 3, and 4 are defined by the remaining three values on the aging periods record.  Aging period 1 always starts one day before the aging date.  The length of aging period 1 is determined by the days in period 1 value.  This value is subtracted from the aging date to define the end of aging period l.  Aging period 2 starts one day before aging period 1 ends and is determined by the days in period 2 value.  Aging period 3 starts one day before aging period 2 ends and is determined by the days in period 3 value.  Aging period 4 starts one day before aging period 3 ends and has no ending date.

The customer past due totals printed on customer statements are the basis for printing dunning messages and credit exception reports.  The overdue flag on the aging periods record (category P44) determines which aging period amounts are accumulated in the past due totals.  This allows you to specify which open items are considered past due: all open items; all open items that are currently due or in aging periods 1, 2, 3, and 4; items in aging periods 1, 2, 3, and 4; items in aging periods 2, 3, and 4; items in aging periods 3 and 4; items in aging period 4; or no items.  See the following figure for further explanation.

Aging Period Classification