Customer Account Summary Inquiry Age Days Calculation Logic

Customer Account Summary Inquiry Age Days Calculation Logic

Release Date: 07/07/2021
Version: 8.5

Q - In A/R Customer Account Summary Inquiry, what is the logic on a partially paid invoice?  See example below:

 

In the above example, invoice number AXI990 was partially paid on 6/18/21. That is 49 days after the due date of 4/28/21. Today is 7/1/21 and the invoice is not fully paid. So the correct age days should be 64 days. Does the aging date on a specific invoice or document stop after the first payment is applied to it?  We'd prefer it if the aging continued until the document was fully paid.

What is the logic?

A - In the following areas that are related to the aging calculation:
  1. The aging report will continue to show the balance in the correct aging column.
  2. The nightly aging calculation that updates the 4 buckets continues to work correctly with this scenario.
  3. Field “77. Av Dy Pst Due Dt YTD” works correctly because it excludes partially paid invoices.
So the only area that is in question is the A/R aging summary inquiry. To be truly correct, we need to allow for the displaying of multiple age days, but there’s a space limitation. The partially paid portion is 49 days, and the balance portion is 64 days as of 7/1/2021 because it is not fully paid yet.

There have been discussions on this subject before. The conclusions were as follows:
  1. Most of the time, when there’s a partial payment, the balance amount would be small. The likely scenario of a not fully paid invoice is due to a dispute about freight, a pricing discrepancy due to a discount argument…etc. These tend to be small amounts.
  2. Because our assumption is that (1.) is the majority, we don’t want to give the wrong impression to credit manager and display a large number of age days for a small disputed amount. For this reason, we calculate the age of partially paid invoices based on the partial payment date.

EMK

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