Track your creditors with the Analysis of Aged Creditors report

The Analysis of Aged Creditors report will help you to effectively manage who you owe money to. As a business owner, you’ll need to know how much money you’re expected to pay your suppliers within your credit terms, and which payments you can potentially push out to help manage your cash flow more appropriately.

Looking at this Dashboard, you’re able to visualise the point that your Creditors Days are 130.31 and, in the red. This means that on average, you’re paying your creditors every 130.31 days compared to the average credit terms of 35.28. Looking at this dashboard, something doesn’t look right. This may lead to further investigations.

Looking at the Creditors Ageing Summary, a business owner can see the total amount outstanding to creditors, as well as for how long it’s been outstanding. In this example, you’re able to see straight away that there’s GBP420k sitting in the Older Than 120 Days column. Once you select that amount, the dashboard filters to show you that this amount relates to a supplier called Traxx.

If you then right click on Traxx and click on Drill through, you’re able to immediately drill down to the specific Supplier information. For example, you’re able to determine who the contact person for Traxx is, and what invoices are Due and Overdue. Looking at this Dashboard, you may realise that there was a whole lot of stock that was sent back, which hasn’t been adjusted yet by the Supplier. This explains the massive amount sitting in the Older Than 120 Days column.

From here, you’re also able to view the specific invoices—so that you can contact Traxx and find out where your credit notes are. When you click on Detail, you’ll get a summary of your business’s Aged Creditors in a table format.

This sheet is also interactive, and so if you had to click on 60 days, for example, only information allocated to 60 days will show up in the table. All clients sitting in 60 days will show up on the right-hand side. This will then allow you to call these clients immediately and chase any outstanding amounts that are due.

But what if you need the invoice numbers so that you can send the information directly to Traxx? All you need to do is right-click on Traxx in the table and drill down to the invoice level detail. In a few clicks, you’re able to analyse creditors by identifying where credit notes were due and following up on them—making sure that any errors are fixed. This ensures that you’re able to continue maintaining a great relationship with your suppliers.

To learn more about this report and how to make best make use of it, watch this short learning video.