Value Proposition: Accounts Receivable Aging is not a “presentation” report; it is a daily operational tool that connects 3 things in one file: (1) Who is actually overdue? (2) Why has it not been collected? (Dispute/Differences/Payment Terms/Credit Limit) (3) What is the next action and when? This AR Aging Template transforms Aging from a list of numbers into a trackable Collections Plan, along with Month-End evidence: AR ↔ GL tie-out + Dispute Summary + Provision/Writedown Memos as needed.

In 20 Seconds: What Will You Get?

• AR Aging Template ready: Aging breakdown (Current / 1–30 / 31–60 / 61–90 / 90+) with customizable Buckets.
• Overdue AR: Automated view generating a list of overdue items by customer/invoice/contract + risk level.
• Collections Plan: Practical cadence (Call/Email/Statement/Follow-up) + Next action date + Owner + Status.
• Collection Follow-up: Collection log linking (Invoice → Promise to Pay → Actual Collection → Reason for Delay).
• DSO Calculation: DSO calculation dashboard (using your chosen methodology) + Monthly trend + Change explanation.
• Dispute / Short-pay Log: Dispute log with discount/return/price discrepancies and closure responsibility.
• Month-End AR Pack: AR ↔ GL tie-out + Dispute Summary + List of Provisions/Writedown candidates (if needed).

CTA related to outputs: Receive Aging Report + Overdue List + Collections Plan + DSO Dashboard + AR↔GL Tie-out Pack ready.

Suitable For

• AR / Collections Lead: Managing collections with a clear schedule instead of relying on “memory” or scattered files.
• Controller / Chief Accountant: Monthly AR closing with evidence: Tie-out + Disputes + Documented Reconciliations.
• Finance Manager / CFO: Visibility into collection risks (Buckets/Concentration) linked to DSO and guiding credit decisions.

Not Suitable For

• If you need a complete collections platform (communications/tickets/workflow within CRM) — this is an operational and analytical template, not a system.
• If you cannot extract AR open items or invoice/due date reports from your system — the product relies on extractable data.

Without Template / With Template (Brief Comparison)

Before Use: 5 Symptoms That Customer Aging Analysis Is Not Operational

• An Aging report exists but there is no “reason for delay” or “next step” for each customer.
• Overdue AR repeats monthly with the same names because disputes are not closed with an official record.
• Payment terms are not uniformly applied, leading to mixed due dates and misleading Aging.
• Differences between AR subledger and GL control appear at closing with no clear breakdown (Unapplied cash / Credit memos / Mispostings).
• There is no consistently calculated DSO, making change explanations “impressions” rather than calculated results.

How Are Accounts Receivable Aging Managed Operationally from Collections to Closing?

The journey begins with an Export of customer balances or Open items, then converting them into Aging buckets, followed by transforming Aging into an operational collections list (Who/What/When). In Week-4, the same data is transformed into a Month-End pack: linking AR with GL, closing disputes, and documenting any adjustments/writedowns through JE refs instead of undocumented decisions.

Application Method (3 Steps)

Step 1: Preparation and Report Gathering

• Extract AR open items / customer balances from the ERP (Invoice date, Due date/Terms, Amount, Currency, Customer code).
• Establish a payment terms dictionary and ensure that the due date is calculated/present (instead of relying on “Invoice date only”).
• Define the methodology for DSO Calculation that you will adhere to (at the company level or by entity/sector) and document it in the Runbook.

Step 2: Reconciliations + Matches + JE Log

• Run the AR Aging Template to produce Aging buckets and extract a Collection Follow-up and Overdue list.
• Review anomalies: Unapplied cash, unlinked credit notes, short-pay discrepancies, pricing/return disputes.
• Any accounting treatment (Reclass/Write-off/Provision adjustment) should be recorded with a reference in the “JE Log” file or “JE ref” field to ensure traceability.

Step 3: Adjusted TB + Statements + Closing Pack

• Perform Tie-out: Total AR subledger ↔ AR control account in GL within TB, and document reasons for differences if any.
• Produce Month-End AR pack: Aging summary + Overdue list + Dispute summary + JE refs + Sign-off.
• Archive the monthly version (Exports + Tracker + Evidence index) as part of the Closing Pack to facilitate internal/external review.

Template Components (Clear Inventory)

1. AR Aging Template (Accounts Receivable Aging)
   • Practical Purpose: Convert customer balances/Open items into clear Buckets (Current/1–30/…/90+).
   • When to Use: Weekly for collections + Monthly before closing.
   • Resulting Evidence: Numbered/dated Aging report that can be saved as Evidence for the month.
2. Overdue AR View (Overdue Accounts Receivable)
   • Practical Purpose: A focused list of overdue items only, sorted by (Days overdue / Amount / Customer).
   • When to Use: Daily/Weekly in collection sessions.
   • Resulting Evidence: Ready follow-up list with Status for each case.
3. Collections Plan (Collections Plan)
   • Practical Purpose: Define Next action for each customer/invoice: Reminder, Send Statement, Escalate, Stop Credit, etc.
   • When to Use: Weekly and updated daily based on customer response.
   • Resulting Evidence: Collection action log that proves follow-up (important in disputes/escalations).
4. Follow-up Log (Collection Follow-up)
   • Practical Purpose: Record communication and promises (Promise-to-pay) and link them to actual collections.
   • When to Use: With every collection follow-up.
   • Resulting Evidence: Trail showing “what happened and when” for each invoice/customer.
5. Dispute & Short-Pay Log
   • Practical Purpose: Manage disputes that hinder collections: Price dispute, Return pending, Unauthorized discount, etc.
   • When to Use: As soon as a dispute arises + weekly review until closure.
   • Resulting Evidence: Dispute log with Owner, Closure date, and Document/Decision reference.
6. AR ↔ GL Reconciliation Sheet
   • Practical Purpose: Link AR subledger with GL control account and explain any differences (Unapplied cash/Timing/Mispostings).
   • When to Use: Week-4/Month-End (and weekly if transaction volume is high).
   • Resulting Evidence: Reconciliation deliverable within the closing file.
7. DSO Dashboard (DSO Calculation)
   • Practical Purpose: Calculate DSO with a consistent methodology + Analyze changes and link to Aging/Concentration.
   • When to Use: Monthly in management reports + Weekly as needed.
   • Resulting Evidence: Dashboard saved as a monthly Snapshot and attached to reports.
8. Month-End AR Closing Pack + Sign-off
   • Practical Purpose: Gather what is needed for closing: Aging summary + Overdue list + Disputes + Tie-out + JE refs + Signature.
   • When to Use: Monthly and annual closing.
   • Resulting Evidence: Closing pack that is reviewable internally and externally.

What Should Be Included in the Delivery?

• 01-AR-Aging-Template.xlsx: Accounts Receivable Aging report + Customizable Buckets + Pivot views.
• 02-Overdue-AR-View.xlsx: List of Overdue AR + Sorted by risk/days.
• 03-Collections-Plan.xlsx: Collections Plan (Next action/Owner/Date/Status).
• 04-Followup-Tracker.xlsx: Collection Follow-up + Promise-to-pay + Follow-up outcome.
• 05-Dispute-Shortpay-Log.xlsx: Dispute and difference log + Owner + Closure date + Evidence reference.
• 06-AR-GL-Reconciliation.xlsx: Matching AR subledger with GL AR control + Reasons for differences.
• 07-DSO-Dashboard.xlsx: DSO Calculation + Trend + Change explanation (based on Aging).
• 08-MonthEnd-AR-Closing-Pack.xlsx: Closing summary: Aging + Overdue + Disputes + JE refs + Sign-off.
• 09-JE-Refs-Log.xlsx (or within the Pack): Log of JE references related to AR reconciliations (Reclass/Write-off/Adjustments).
• 10-Evidence-Index.xlsx: Evidence index (Exports/Statements/Approvals) + Paths/Links.
• 11-Runbook.pdf: Operational run (Weekly collections → month-end tie-out → closing pack).
• 12-Archiving-Map.docx: Monthly archiving tree (Year/Month/AR/Aging/Collections/Evidence) + Naming convention.

After Implementation (Two Points Only)

• Operational Outcome for the Team: Collections are managed as a task list: Organized Overdue AR + Next actions + Follow-up log, with a clear distinction between (overdue due to dispute) and (overdue due to lack of follow-up) and (overdue due to payment terms).
• Control/Audit Outcome: Month-End becomes supported by evidence: Aging snapshot + AR↔GL reconciliation + Dispute log + JE refs + Sign-off, so any subsequent review traces the file instead of starting from scratch.

FAQ — Questions Before Purchase

Is the template suitable for any ERP system?

Yes. It is sufficient to export AR open items or customer balances with invoice and due dates. The template then produces Aging/Overdue/Plans and Tie-out.

Does it support multi-branch/entity companies?

Yes, by adding Entity/Branch as a required field, then extracting Aging, DSO, and Collections plan for each entity or group.

Does it require a calculated due date in the system?

Preferably yes. If not available, it can be calculated from Invoice date + Payment terms, but the methodology must be documented to avoid misleading Aging.

Does it include a “Collections Plan” or just an Aging report?

It includes an operational plan: Next action/Owner/Date/Status + Follow-up log + Dispute log to explain delays.

What is the minimum data required to get started?

Customer code/name + invoice number + invoice date + due date/terms + amount + currency. And any receipts/reconciliations that help explain discrepancies.

Does it produce DSO calculation in a consistent manner?

The template supports DSO calculation with methodology documented in the Runbook. The key is to adhere to the same methodology monthly for comparison, not to change the method based on results.

Does it cover closing adjustments like Write-off or Reclass?

It covers them as documentation: JE refs + Reason + Approval + Impact, and includes them in the Month-End AR closing pack. Execution of entries is done within the ERP.

Is there a delivery template for reviewers?

Yes, practically through: Aging snapshot + AR↔GL reconciliation + dispute summary + evidence index + sign-off (ready delivery within the Closing Pack).

Ready to Transform Aging into a Trackable Collections Plan and Deliverable Closing File?

Outputs: AR Aging Template + Collections Plan + Overdue AR + DSO Dashboard + AR Closing Pack.