An AR aging report lists a company’s unpaid customer invoices on a given date, grouped by how long each is past due: not yet due, 1-30, 31-60, 61-90 and over 90 days. Built from a month-end export, it tells you a customer crossed 90 days only after they stopped paying, when the balance is a provision, not a collection.
In OneFinOps, the Collections Agent ranks open invoices by cash at risk every day.
Key takeaways
- Standard buckets are current, 1-30, 31-60, 61-90 and 90+ days.
- Read it by bucket share, customer concentration and trend, not only the total.
- The report drives the provision for doubtful debts under Ind AS 109.
AR aging report format
The summary view has one row per customer and one column per bucket. The detailed view has one row per invoice: customer, invoice number, due date, balance after receipts and TDS, days overdue, bucket, owner and a dispute flag.
Use the due date basis for collections. Schedule III to the Companies Act, 2013 asks for ageing from the due date, and from the transaction date only where no due date is set, in bands from less than 6 months to more than 3 years.
AR aging report example
A Bengaluru packaging supplier on 30 September 2026, due date basis, amounts including 18% GST:
| Customer | Not yet due | 1-30 | 31-60 | 61-90 | 91-180 | Over 180 | Total |
|---|---|---|---|---|---|---|---|
| Mehta Traders | 2,36,000 | 1,18,000 | 0 | 0 | 0 | 0 | 3,54,000 |
| Ravi Engineering | 0 | 3,54,000 | 2,36,000 | 0 | 0 | 0 | 5,90,000 |
| Sunrise Retail | 1,77,000 | 0 | 0 | 1,18,000 | 59,000 | 0 | 3,54,000 |
| Kaveri Foods | 4,72,000 | 2,36,000 | 0 | 0 | 0 | 0 | 7,08,000 |
| Orbit Infra | 0 | 0 | 0 | 0 | 1,77,000 | 2,95,000 | 4,72,000 |
| Total (₹) | 8,85,000 | 7,08,000 | 2,36,000 | 1,18,000 | 2,36,000 | 2,95,000 | 24,78,000 |
| % of total | 35.7% | 28.6% | 9.5% | 4.8% | 9.5% | 11.9% | 100% |
How to read an AR aging report
- Current share. About 64% of the book is not yet due or under 30 days late.
- The old tail. 21.4% (₹5,31,000) is over 90 days. That is where bad debts come from.
- Concentration. Orbit Infra’s ₹4,72,000 is all over 90 days: a credit hold and a payment plan.
- Customers sliding. Ravi Engineering moving into 31-60 means a call before 60 days.
- Disputes. Sunrise Retail pays new invoices but not old ones, so one is likely contested.
Clean the data first: TDS left on the customer ledger and unapplied receipts both age into 90+ though nothing is owed. To bucket your own open invoices, use the AR aging report calculator.
How OneFinOps handles the aging report
The Collections Agent ranks open invoices by cash at risk and payment behaviour, so a large current balance from a customer who has started paying late can outrank a small invoice at 90 days. It reads remittances as they arrive and matches them to open invoices, so the buckets are not padded with money already received.
It does not put a customer on hold by itself. A customer over its credit limit goes to the credit controller with the exposure shown.
A report that lists buckets still leaves the work to someone. Here the agent works the list and people keep the decisions.
See how the Collections Agent works
