Disorganised accounts receivable (AR) might seem like an insignificant problem but it is in fact one of the major causes of cash flow problems for businesses. Without a proper accounts receivable management system, you’re likely to run into issues like belated invoice reminders, overdue payments, or even missing invoices.
In order to avoid accounts receivable issues like these, your accounting department needs to create and maintain AR aging reports.
What is NetSuite Aging Report?
The Accounts Receivable Aging Report is a powerful tool within the NetSuite business management suite that shows you how much each of your customers is owing you at any point in time — think statement charges, credit memos, and unpaid invoices.
With it, you can access a record of all unpaid invoice balances along with their outstanding duration so that you don’t miss out on the red flags.
NetSuite AR Aging Report Capabilities
Here’s what you can use NetSuite aging report to do:
- See which of your customers owe you
- Keep track of how much they owe you
- Track how long each invoice has been pending
- Sort by the amounts each of your customers owe you so that you can see who’s owing you the most money
- In the Detailed report, you can also see due dates for each sales invoice
- Have a clear view of how much money is owed to your company in total
- Get an overview of summary and detailed AR aging
- Detect slow payments
- Customise the reports to suit your needs
- Identify and manage disputes
- Analyse key data
Sections of the NetSuite Aging Report
Here’s the information you’ll find within the NetSuite accounts receivable reporting tool.
- Transaction type
- Date (initiation date)
- Document number
- P.O. number
- Due date
- Age (number of days past due)
- Amount due (this can be itemised by transaction and grouped by customer or project total)
Types of Transactions that Appear in NetSuite AR Aging Report
- Unpaid invoices
- Unpaid statement charges
- Credit memo
- Payment (invoice amount)
- Deposit application
The Next Step?
A healthy accounts receivable management is always necessary for a healthy cash flow, which explains why you need to be on top of your AR game.
The main purpose of NetSuite aging report is to prioritise all the overdue receivables so your business can keep running smoothly. An up-to-date AR aging report will not only let you identify and deal with pending invoices but also prevent bad debt and cash flow disasters.