Accounts Receivable Template With Aging is a ready-to-use template in Excel, Google Sheet, and OpenOffice Calc that find your Accounts receivable Aging.
This template records the sale of services or goods by a company made on credit. In other words, Account receivable Ledger records the credit invoices of a company to its debtors.
Moreover, you can also generate debtors-wise, date wise, period wise aging reports with this template.
Table of Contents
As per Wiki
Accounts receivable means enforceable claim for payment that a business holds for supply of goods or services to customersand not paid for. These are generally in the form of invoices that a busines raises and delivers it to the customer for payment within an agreed time frame.
These Accounts Receivables are our assets and listed as a current asset on our balance sheet. Accounts receivable can be further subdivided into two; trade receivables and non-trade receivables.
Trade receivables are from a company’s routine sales activities. Non-trade receivables are all other receivables, such as amounts due from employees against loans, etc.
The total amount of accounts receivable which a company allows to a debtor/customer is often limited by a credit limit. This limit is set by the company’s credit department. The payments delayed upon this credit limit is called aging.
These limits are based on the finances of the buyer and its payment history. You can increase or decrease the credit limit period according to market conditions.
The higher the accounts receivable the higher our assets will be. But Just making good sales is not enough. Collections should also be timely and will help decrease our bad debts. Thus, it must be kept in mind that we must have a minimum amount of bad debts.
Moreover, it helps us to monitor our billing and collection process. This includes regular and strict follow-ups with clients for payments.
The aging report also helps us to define and manage credit policies. This includes client-wise evaluation of payment terms and making necessary changes as and when required.
The collection of Accounts Receivable defines the cash flow of a company. Delays in accounts receivable collections can lead to lower cash flows. Monitoring of aging reports at regular levels can help us to decrease the chances of Bad Debts.
Furthermore, a company can use its accounts receivable as collateral for loans from banks or other non-banking finance corporations.
Moreover, it is also helpful in defining the Allowances for Doubtful Debts at the time of preparing yearly financial statements.
Given below are the different Journal entries for reporting Bad Debts.
Bad Debts A/C – Debit
Debtor’s A/C – Credit
Debtor’s A/C – Debit
Bad Debts Recovery A/C – Credit
Profit and Loss A/C – Debit
Bad Debts A/C – Credit
We have created an Accounts Receivable Template with advanced Aging functions. With Accounts Receivable Template you can efficiently and easily record the sales entries.
The Accounts Receivable Template is useful for Accounts Assistant, Accountants, Audit Assistants, etc.
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Important Note: To edit and customize the Google Sheet, save the file on your Google Drive by using the “Make a Copy” option from the File menu.
You can download other accounting templates like Cash Book, Petty Cash Book, and Purchase Return Book.
This template consists of two sections: Header Section, Data Input Section, and Accounts Receivable Aging Report Section.
In the Header section, the right-hand side consists of the Company name and name of the Ledger of Accounts Receivable.
The left-hand side consists of the Current Balance of Accounts Receivable amount. Thus, Balance amount = Total of Sales Invoice – Payments Received.
The data input section consists of the following subheading for data entry of Receivables:
Customer Name: Name of Debtor’s company or individual.
Invoice #: Invoice number of the Debtors.
Date: Date of invoice issued by Debtor
Invoice Amount: Amount of invoice in the desired currency.
Payment Terms: Predefine the credit limit period. Here it is mentioned 30 days from the date of invoices issued.
Amount Received: Record all the receipts of receivables in this cell.
Date Received: Date of payment.
Due Date: Due date is the number of days allowed in addition to the date of the invoice. If you want to set longer limits are just change the number of in Payment Terms column.
The Formula applied here is as below: =IF(Table2[[#This Row],[Invoice Date]]=””, “”, Table2[[#This Row],[Invoice Date]]+Table2[[#This Row],[Payment Terms]]).
Amount Outstanding: This column shows the balance amount after deducting payments received from the total amount of invoice.
The formula here is =Table2[[#This Row],[Invoice Amount]]-Table2[[#This Row],[Amount Received]]
Days Past Due Date: This column shows the number of days past to the Due date of payment or end of credit limit time. Thus, it calculates by deducting today’s date from the due date.
Formula Applied here is =IF(Table2[[#This Row],[Amount Outstanding]]=0,””,TODAY()-Table2[[#This Row],[Due Date]]).
Remarks: This column shows the status of the debtor. If the number of days past the due date is 0, then the cell will be blank. If the number of days is below 90, the cell will display a message to Call Customer.
Similarly, if the payment time is above the maximum limit or due date, then it will show the message as Bad Debt. In this template, the maximum limit is above 90 days from the due date.
The formula applied here is =IF(Table2[[#This Row],[Days Past Due Date]]=””, “”, IF(Table2[[#This Row],[Days Past Due Date]]<90, “Call Customer”, “Bad Debts”)).
This template generates customer-wise/debtor wise reports in a few clicks. Click on the drop-down menu and select the name of the debtor you want the report for and click OK. See image below:
Let’s discuss the template contents in detail.
Note: All the subheadings in the data input section are consist of the filter option using the table function. Thus, it allows you to generate a debtor wise, date wise, etc query/report as required.
You need to simply click on the drop-down button in a subheading and select the criteria of the report.
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To prepare an aging report, you need to first list the customer’s name and list their outstanding balances. After this count the delay days since it has become overdue.
The formula to calculate the average age of receivables is Accounts receivable in an accounting period x 365 ÷ sales revenue collected in that period.
Groups outstanding invoices by customer and date range. Make outstanding invoices group for 1-30 days overdue, 31-60 days, 61-90 days, 91-120 days, and 120+ days.
Accounts Receivable Aging Report helps to determine the proper valuation of our accounts receivable. An auditor will analyze this report and calculate the bad debts.
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