Forum Discussion

NowHolly70's avatar
NowHolly70
Experienced Cover User
5 years ago

Ageing Terms not picking up correctly on Statement

I have set up a test account using the ageing terms of

#no of days after EOM   

balance due days = 31

 

invoice as follows

10.3.20      $9.35

10.2.20      $9.68

25.1.20    $33.00

19.12.19  $66.00

Reports and Aged receivables are all perfect 

but when my statement prints it prints the following

Current  $52.03          - Should be  $9.35

30 days    $0.00                 "       "    $9.68

60 days  $66.00                 "      "   $33.00

90 days    $0.00                 "      "   $66.00

Amount $118.03

 

As i said eairlier accounting reports are all correct but my statement which i send to our customer is incorrect??

 

Is there a problem with the software???

  • NowHolly70's avatar
    NowHolly70
    5 years ago

    Hi Tracey,

    Thanks for your reply.

     

    As I am setting up a new data file we just wanted to get this right.

    So after taking into consideration what you have said

    We have come up with this formula:-

    We set our customers up as

    Day of Month after EOM

    Discount = EOM

    Day = 30th

    If we set up this way

    reports are correct

    ageing is correct

    and payment due days is correct

    Statements are correct (running them at the 1st on the following mth)

    Can you see any issues with this.

     

     

     

     

     

  • Tracey_H's avatar
    Tracey_H
    Former Staff
    5 years ago

    Hi NowHolly70 

     

    Thanks for your post. Aging on customer statements is determined by two factors: the payment terms in the card and the Statement Date in the Print/Email Statements window.

     

    Based on your credit terms of payment due 31 days after end of month, the due date for your invoices is as follows:

    10.3.20   due 01.5.20

    10.2.20   due 31.3.20

    25.1.20   due 02.3.20

    19.12.19 due 31.1.20

     

    If you select the statement date: 28 Feb 20, the aging is:

    current $52.03  - Jan, Feb and Mar invoices are not yet due

    30 days $66.00 - Dec invoice

     

    With the Statement Date:  2 March 20 :

    current $52.03 - Jan, Feb and Mar invoices are not yet due

    30 days $0.00

    60 days $66.00 - Dec invoice

     

    With the Statement Date: 3 March 20, the Jan invoice will move into 30 days as it was due on the 2.3.20, so

    current is $19.03 - Feb and Mar

    30 days $33.00 - Jan

    60 days $66.00 - Dec

     

    I hope this clarifies aging for you.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

    • NowHolly70's avatar
      NowHolly70
      Experienced Cover User
      5 years ago

      Hi Tracey,

      Thanks for your reply.

       

      As I am setting up a new data file we just wanted to get this right.

      So after taking into consideration what you have said

      We have come up with this formula:-

      We set our customers up as

      Day of Month after EOM

      Discount = EOM

      Day = 30th

      If we set up this way

      reports are correct

      ageing is correct

      and payment due days is correct

      Statements are correct (running them at the 1st on the following mth)

      Can you see any issues with this.

       

       

       

       

       

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        5 years ago

        Hi NowHolly70 

         

        There's no issue at all with either of those credit term options you have looked at. The only thing about choosing a number of days after EOM, ie 30 or 31, is that statement aging will be affected according to the number of days in the month and the date you run the statement.

         

        Day of month after EOM - EOM is a common choice for businesses as payment is due on the last day of the month regardless of the number of days in the month, so it's easier to tell when invoices are due.

         

        But it really is up to your business which option you choose based on what suits your needs best. This help article explains the different credit terms in more detail:  Credit terms 

         

        Please let me know if you need further help.

         

        If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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