Ageing periods explained

Solution Properties

Solution ID:

200427112207936

Last Modified Date:

Fri Jun 16 15:06:07 UTC 2023

Taxonomy Path:

Case category//How do I...//setup/create/run a report

Author:

[email protected]

Ageing periods explained

Description

To manage your credit control it's important to know how old your customer and supplier debts are. Different businesses age and categorise debts in different ways. Sage 50 Accounts has two different types of ageing:

Period ageing
Calendar monthly ageing

You can choose the one that works best for your business.

Cause

Resolution

Set your preferred ageing method

Go to Settings, then Customer Defaults or Supplier Defaults.
Select the Ageing/Due date tab.

For more information about the ageing options available, please select each option below:

▼ Period ageing

Period ageing shows the age of transactions in days. The defaults periods are 30, 60, 90 and 120 days but if required you can enter your own number of days.

If you use the default periods, when you run an aged report the periods appear as follows:

Aged Period	Age of transaction
Current	0-29 days
Period 1	30-59 days
Period 2	60-89 days
Period 3	90-119 days
Older	120 days and older

Start Period Ageing on the first day of the month after Transaction date

To start ageing transactions from the first day of the month following the transaction date, select this check box. For example, if a transaction is dated 2 May it remains in the Current period throughout the whole of May. Then on 1 June it is 1 day old, on 2 June it is 2 days old and so on. It moves into Period 1 on 30 June when it is 30 days old.

Include future totals in balance

If you select this check box, when viewing aged reports the balance includes transactions dated after the report date. This also applies to the balances in Customers > Aged debt, and Suppliers > Aged balances.

▼ Calendar monthly ageing

Calendar monthly ageing ages transactions by calendar month rather than by the number of days the transaction is outstanding. This means that transactions move into Period 1 on the first day of the following month.

For example for a sales invoice dated 15 January the following table shows the ageing period in which the transaction appears if the Aged option is run for a selection of dates.

Date you run the aged option	Period in which the transaction appears
Prior to 14 January (inclusive)	Future
15 January to 31 January	Current
1 February to 28 February	Period 1
1 March to 31 March	Period 2
1 April to 30 April	Period 3
1 May onwards	Period 4

Include future totals in balance

▼ Areas the ageing defaults affect

When you set your ageing periods, you affect the following areas of the software:

Aged reports	Customers > Reports > Aged debtors. Supplier > Reports > Creditors reports.
Aged options	Customers > Aged debt. Suppliers > Aged balances.
Activity windows	Customers > Activity. Customer record > Activity tab. Suppliers > Activity. Suppliers record > Activity tab.
Filters	The options you select in the Customer and Supplier defaults are shown when using the filter or search options.
Columns	The options you select in the Customer and Supplier defaults are shown when selecting columns in the following windows: Customers > Chase debt. Suppliers > Manage payments. To add or remove column, right-click the row of column headings > choose the column you want to add or remove.

The Cash flow option in Bank accounts is NOT affected by the ageing defaults. Instead this uses the due date on a transaction, set by the Payment Due option in the Customer or Supplier record, when the transaction is posted.

Set your payment due preference - v28.1 and above

In your customer and supplier records, you can set payments to be due by a certain number of days after the invoice date. You can choose whether invoices are due immediately or after 30 days when customer or supplier records have a payment due value of zero.

Go to Settings, then Customer Defaults or Supplier Defaults.
Select the Ageing/Due Date tab then apply the setting you prefer as follows:

When due days is zero, payment is to be due immediately.

To apply this setting, ensure the Payment due immediately when payment due days is set to zero checkbox is selected.

With this option, where payment due days is set to zero, an invoice dated 01/05/2026 is also due on 01/05/2026.

When due days is zero, payment is to be due in 30 days.

To apply this setting, ensure the Payment due immediately when payment due days is set to zero checkbox is clear.

With this option, where payment due days is set to zero, an invoice dated 01/05/2026 is due on 31/05/2026.

[BCB:119:Limitless - 50 Accounts - Customers:ECB]

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