What is an Accounts Receivable Report with Dynamic Aging Buckets?

Accounts Receivable (AR) Aging reports are considered operational reports and are used by accountants to determine past due customer balances. Some of the key functionality in this type of report is that it dynamically calculates and displays outstanding amounts by querying transactions within date ranges like 0-30 days, 31-60 days and so on. Because it is dynamic, the user does not need to first run any aging process in their ERP system. You find an example of this type of report below.

Purpose of AR Aging Reports

Companies and organizations use AR Aging Reports to easily detect customers who are behind on their payments. When used as part of good business practices in a Financial Planning & Analysis (FP&A) and Accounting Department, a company can improve its liquidity as well as reduce the risk that a customer never pays.

AR Aging Report Example

Here is an example of a modern AR Aging report with automatically calculated aging buckets.

Accounts Receivable Report with Dynamic Aging Buckets

Accounts Receivable Report with Dynamic Aging Buckets

You can find 100’s of additional examples here

Who Uses This Type of Report?

The typical users of this type of report are: CFOs, controllers and accountants.

Other Reports Often Used in Conjunction with AR Aging Reports

Most Financial Planning & Analysis (FP&A) and Accounting Departments use several different AR Aging Reports, along with sales transaction reports, accounts payable (AP) reports and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others.

In analysis where budgets or forecasts are used, the data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Technology Solutions and More Examples