The AR Aging by Effective Date report is designed to give a snapshot of AR aging as of a specific date in time. It is also the report which should be used to reconcile accounts receivable to the general ledger.
Report Criteria
When running the AR Aging by Effective Date report you can filter by branch, customer status, and/or invoice type. You can sort the report by customer name or number. There are also three additional report options:
Invoice and Credit Detail – When this option is not checked the report shows one summary AR line for each customer. When this option is checked the report shows one line for each open invoice and credit on the customer.
Use Branch at Invoice Level – The branch assigned to an invoice’s site and the branch assigned to the invoice itself are usually the same. However, you can change the branch on an invoice so that these two do not match. By default the report uses the site branch for invoices, but selecting this option makes the report use the branch on the invoice itself.
Age Credits – Normally credits appear on the report by themselves in a generic ‘credit’ bucket. However, you can get your credits to age just like invoices by selecting this option.?
AR Aging by Effective Date without detail
AR Aging by Effective Date with Invoice and Credit Detail
AR Aging by Effective Date Detail Vs Current Aging
The difference between effect date report and the current aging report, is that the current aging can’t show you what the aging used to look like, only what it looks like now. For example, if Invoice A was created on 1/1/2016 and paid on 2/1/2016, and we ran the current aging report on 2/1/2016, Invoice A will not show because it is paid. If instead we ran the AR Aging by Effective Date report with a date of 1/31/2016 Invoice A will appear, because on 1/31/2016 Invoice A was not yet paid.
To put it another way, the Current Aging Report will give an accurate picture of what your AR looks like now, and the AR Aging by Effective Date Report will give an accurate picture of what the January AR looked like then. This is especially important when considering credits, which may be applied and unapplied in different months. The current aging will only recognize the final resting place of the credit. The AR Aging by Effective Date report will track where the credit was applied or unapplied as of the date you select.
Additional Examples
For the examples below, assume todays date is 2/1/2016 and the effective date report is run for 1/31/2016 (remember there is no way to select a date on the current aging, it is always run as of today).
| Invoice | Dated | Paid | Appears on Current Aging | Appears on AR Aging by Effect Date |
|---|---|---|---|---|
| A | 1/1/2016 | 2/1/2016 | No | Yes |
| B | 1/1/2016 | 1/31/2016 | No | No |
| C | 2/1/2016 | Not yet paid | Yes | No |
