Software: QuickBooks accounting software
You have invoiced both Customer A and Customer B on 25th February, but the Ageing Report shows the Customer A’s outstanding is in the “1-30” days ageing cycle whereas the Customer B’s outstanding is in the “Current” ageing cycle.
The payment terms set in the customer profile affects the due date of an invoice. If you have set the payment terms of Customer A as “Due on Receipt” and Customer B as “Net 30”, the due date of Customer A’s invoice will be on the same day as the invoice date, whereas the Customer B’s invoice will be due in 30 days time.
When the Ageing report, which is based on age from due date, is printed within the next 30 days from the transaction date, the outstanding of Customer A will show in the “1-30” days ageing cycle whereas Customer B’s outstanding will be under the “Current” ageing cycle.
QuickBooks allows you to set the Ageing Report to be aged from the due date or age from the transaction date. The setting is in the Edit menu > Preferences > Reports & Graphs > Company Preferences. By default, QuickBooks uses “Age from due date” for ageing reports. In the above example, Customer B is having a Net 30 (30 days payment terms), the outstanding is still under “Current” if the ageing report is based on “Age from due age”. The outstanding of Customer B will fall in the “1-30” days ageing cycle if “age from transaction date” is being used.