Accounts Payable With Aging Template is a ready-to-use template in Excel that provides the details of outstanding payables. This template is useful for Accounts Assistant, Accountants, Audit Assistants, etc.
It is a document that records invoices of goods purchased by us on credit. In other words, our creditors whom we are liable to pay during a specific time.
All kinds of Payables are liability for the company and the business records them in the current liabilities section. Hence, Accounts Payable is a short-term debt that needs to be paid off to avoid any kind of default.
Normally, Accounts Payable is credit balance. When you record a vendor invoice, you credit Accounts Payable and debit another account as per the double-entry accounting system.
Simultaneously, when you pay your Accounts payable, you will debit Account payable and credit the Cash. Therefore, the credit balance in Accounts Payable should be equal to unpaid vendor invoices.
Accounts Payable is not a term that is used in businesses. Even individuals like you and me have Accounts Payable.
For example, we consume electricity, we use telephone, broadband, cable TV, etc services. These companies generate the bills to us at the end of a particular billing period.
It means that the service provider gives us some service on credit. We need to make payment of these services on a certain date or else you will default. This is our Accounts Payable.
What is Accounts Payable Aging Report?
Accounts payable aging report shows the creditor’s balances you owe. Moreover, it consists of details of how much you owe, and for how long you’ve owed debts.
Account Payable consists of invoices of inventory, supplies, services, etc that business purchases carry on with their operating activities.
Accounts Payable Aging Summary
The first column will always display the names of your suppliers. The next column consists of the invoice details. These include invoice date, invoice number, and payment date. In addition to this, it also consists of payment details such as the payment date and payment amount.
So, the report consists of the aging section. Each column represents a time frame by calculating the days according to date and payment terms. Usually, an aging report uses a 30-daysystem.
Importance of Accounts Payable Aging
Aged Creditors Report is a tool that helps to monitor the age of outstanding payables of the company.
This AP aging report helps business to take timely actions to ensure good relations with suppliers/vendors. Furthermore, this reduces the liability of business.
Moreover, early payments to vendors will help the business to receive early settlement discounts. This report is also useful to predict the Cash Flow requirements of the future.
Accounts Payable With Aging Template
I have created an this with advanced functions. With this you can efficiently and easily record entries. This template generates a vendor wise/creditors wise report in few clicks.