What is an accounts payable aging report?


Quick Answer

An accounts payable aging report is an accounting detail that lists the due dates of payments that a company owes to vendors. It helps a company plan how it will use available cash by revealing which invoices have been outstanding for the longest time.

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What is an accounts payable aging report?
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Full Answer

Accounts payable is an accounting system category that includes all purchases made by a business from regular vendors on credit terms. Many businesses make arrangements with vendors to pay for services and materials 30, 60, 90 or 120 days after receipt so that the business has time to earn money with the input before payment becomes due. Having the ability to control when an invoice will be paid enables the company to manage its cash flow. An accounts payable aging report lists all outstanding invoices and when the invoices are due for payment under existing credit terms. With this information, a company can decide which items can be paid on time based on the amount of cash the company has on hand and which invoices the company may need to pay late.

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