What is receivables aging?
Receivables aging is the report that groups what your customers owe you by how much time has passed since the due date. Receivables not yet due, 1-30 days overdue, 31-90 days, 91-180 days and older than 180 days appear in separate buckets. That way, the collections team knows where to focus, and finance knows which receivables carry risk.
READERP's receivables report set is made up of three reports.
1. Aging
In five buckets, broken down account by account and by province. Which region is slowing down on collections and which customer group's payment habits are slipping can be seen on a single screen. Thanks to fiscal-period merging, open items from earlier years are also listed with their correct age.
2. Costliest delays
How your collections list is sorted determines who you call. Both common ways of sorting are misleading:
- By amount: Your biggest customers rise to the top, even if they are only two days late.
- By days: A small invoice worth a few hundred lira left over from years ago comes first.
READERP multiplies the overdue amount by how long it has been waiting. A customer makes the list because they are genuinely costing you money. That is how the collections team's first calls of the morning are decided.
3. Account scorecard
A single customer's balance trend, payment rhythm and risk profile. Changes such as "this customer used to pay in 30 days; over the last six months that has stretched to 60" show up on the scorecard. The sales team can check the scorecard before approving a new order.
Reconciliation questions for your accountant
Receivables older than 180 days raise the question of provisions for doubtful receivables under Turkish tax law. In such cases, READERP adds a reconciliation question to the report: "Has a provision been set aside for this old receivable? Which ones have had a lawsuit or enforcement proceedings started?" The question is routed to your external accountant together with the figure that triggered it. Details: reconciliation questions.
How is it used?
- The collections team starts each morning with the "costliest delays" list.
- Finance tracks the aging buckets weekly and sees the drift between buckets.
- Management reads, in the monthly report, how the receivables structure is changing and how it affects the cash projection.
Collection time is one of the three legs of the cash conversion cycle; the longer it takes to collect, the longer your money stays tied up.
Foreign-currency receivables
For customer accounts invoiced in foreign currency but tracked in TRY, the TRY balance may not reflect the actual receivable. READERP reads these accounts in their own currency and shows the difference clearly.
Frequently asked questions
Can we change the bucket ranges?
The default five buckets are enough for most companies; if you need a different range structure, it is set up during installation.
What assumption is aging calculated on?
Collections are applied starting from the oldest invoice (first in, first out). If your company matches payments invoice by invoice, we take that into account during setup; the method the report uses is always stated on its page.
Can the report be broken down by sales representative?
Yes, if the representative is recorded in the ERP.
To simplify receivables tracking, get in touch. General information: READERP · ERP reporting.