AR Aging

Executive Summary

Purpose & Scope

• Track and report on accounts receivable aging for collections management and financial health monitoring
• Scope includes: Aging bucket calculations, AR reports, collection priority identification
• Out of scope: Automated collection workflows, dunning letters

Objectives

• Provide visibility into outstanding receivables by age
• Enable collections prioritization based on aging buckets
• Support client-level and portfolio-wide AR analysis
• Generate AR Aging statements/reports

Process Overview

AR Aging Calculation

flowchart TD
    BI[Open Billing Items] --> DUE[Check Due Date]
    DUE --> AGING{Days Past Due}
    AGING -->|Current| CUR[Current]
    AGING -->|1-30| D30[1-30 Days]
    AGING -->|31-60| D60[31-60 Days]
    AGING -->|61-90| D90[61-90 Days]
    AGING -->|Over 90| D90P[90+ Days]
    
    CUR --> SUM[Calculate Summary]
    D30 --> SUM
    D60 --> SUM
    D90 --> SUM
    D90P --> SUM
    
    SUM --> RPT[Generate Report]

Figure 1: AR Aging Bucket Calculation Flow

Core Rules & Requirements

Aging Buckets

Bucket	Days Past Due	Priority
Current	≤ 0 (not yet due)	Low
1-30 Days	1-30	Medium
31-60 Days	31-60	High
61-90 Days	61-90	Urgent
90+ Days	> 90	Critical

---

Aging Calculation

Days Past Due = As-Of Date - Due Date

If Days Past Due ≤ 0: Amount → Current bucket
If Days Past Due 1-30: Amount → 1-30 bucket
If Days Past Due 31-60: Amount → 31-60 bucket
If Days Past Due 61-90: Amount → 61-90 bucket
If Days Past Due > 90: Amount → 90+ bucket

---

Amount Calculations

Field	Calculation
Original Amount	Billing item gross amount (REV line)
Applied Amount	Sum of cash receipt applications
Remaining Amount	Original - Applied
Outstanding Total	Sum of remaining amounts

IMPORTANT

Only the remaining balance is classified into aging buckets, not the original amount.

---

Open Items Filter

By default, AR Aging only includes items where open_item_ind = true.

An item is closed when:

• REV balance = 0 AND PAY balance = 0
• Item is fully paid or written off

---

Client Filter

AR Aging can be run:

• Portfolio-wide: All clients (no filter)
• Single client: Filter by client_id

User Interface Specifications

AR Aging Report Screen

Purpose: Generate AR Aging reports for analysis.

Filters:

Filter	Type	Default
Client	Autocomplete	All Clients
As-Of Date	Date Picker	Today
Open Items Only	Toggle	On

Actions:

• Preview (view data without PDF)
• Generate Report (create PDF)
• Export to Excel

---

AR Aging Summary View

Summary Table:

Bucket	Amount	% of Total
Current
1-30 Days
31-60 Days
61-90 Days
90+ Days
Total		100%

---

AR Aging Detail View

Columns:

Column	Description
Client	Client name
Deal	Deal name
Invoice #	Invoice reference
Invoice Date	Billing date
Due Date	Payment due date
Original Amount	Full invoice amount
Applied	Cash applied
Current	Current bucket amount
1-30	1-30 day bucket
31-60	31-60 day bucket
61-90	61-90 day bucket
90+	90+ day bucket

Sorting: Default by Days Past Due (descending)

Grouping: Optional grouping by Client

---

AR Aging Health Check

Purpose: Quick dashboard view of AR health.

Metric	Description
Total Outstanding	Sum of all open balances
Current %	Percentage in Current bucket
Past Due %	Percentage in 1+ day buckets
90+ %	Percentage in 90+ bucket
Item Count	Total open receivables
Average Age	Weighted average days past due

Data Requirements

Source: Billing Items

AR Aging reads from billing items where open_item_ind = true:

Field	Usage
billing_item_id	Unique identifier
billing_item_name	Display name / invoice reference
billing_item_due_dt	Due date for aging calculation
open_item_ind	Filter for open items
client_id	Client filter
deal_id	Deal association

Source: Billing Item Details

Field	Usage
billing_item_detail_gross_amt	Original amount
billing_item_detail_type_cd	REV or PAY

Source: Cash Receipt Applications

Field	Usage
cash_receipt_amt_applied	Applied amount
billing_item_detail_id	Link to detail

---

AR Aging Line Item (Calculated)

Field	Type	Description
clientName	String	Client display name
dealName	String	Deal name
invoiceNumber	String	Invoice reference
invoiceDate	Date	Billing date
dueDate	Date	Payment due date
originalAmount	Decimal	Full invoice amount
appliedAmount	Decimal	Cash applied
currentAmount	Decimal	Current bucket
days1to30	Decimal	1-30 day bucket
days31to60	Decimal	31-60 day bucket
days61to90	Decimal	61-90 day bucket
days90Plus	Decimal	90+ day bucket

---

AR Aging Summary (Calculated)

Field	Type	Description
current	Decimal	Total in Current bucket
days1to30	Decimal	Total in 1-30 bucket
days31to60	Decimal	Total in 31-60 bucket
days61to90	Decimal	Total in 61-90 bucket
days90Plus	Decimal	Total in 90+ bucket

See Also

Document	Relationship
Billing Items	Source data for AR aging
Statements	AR Aging statements
Write-Offs	Aged receivables may be written off

Gherkin Scenarios

Scenario: Calculate Aging for Single Receivable

Feature: AR Aging Calculation

  Scenario: Receivable is placed in correct bucket based on days past due
    Given a billing item with due date 2026-01-01
    And original amount $10,000
    And cash applied $3,000
    And today is 2026-02-15 (45 days past due)
    
    When AR aging is calculated
    
    Then remaining amount should be $7,000
    And the amount should be in the 31-60 days bucket

Scenario: Generate Portfolio AR Aging Report

Feature: AR Aging Report

  Scenario: Generate AR aging for all clients
    Given there are open billing items across multiple clients
    
    When I generate AR aging with no client filter
    And as-of date is today
    
    Then the report should include all open items
    And summary should show totals by bucket
    And line items should be sorted by days past due

Scenario: Filter AR Aging by Client

Feature: Client AR Aging

  Scenario: Generate AR aging for a specific client
    Given client "John Smith" has 5 open billing items
    And other clients have 20 open billing items
    
    When I generate AR aging filtered to "John Smith"
    
    Then only 5 line items should appear
    And all items should be for "John Smith"

Scenario: Current vs Past Due Classification

Feature: Current vs Past Due

  Scenario: Items not yet due are classified as Current
    Given a billing item with due date tomorrow
    And remaining balance $5,000
    
    When AR aging is calculated with as-of date today
    
    Then the amount should be in the Current bucket
    And no amount should be in past due buckets