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AP: Invoice Aging Report

Discussion in 'General' started by jagadekara, Mar 20, 2014.

  1. jagadekara

    jagadekara Forum Guru

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    Let’s see what the term Invoice Aging means? Why is it called Aging report? Where is the Aging report used? How does the Aging report work?

    Why called Aging Report?

    : Aging comes from the word Age. “Age” is the chronological representation of any phenomenon. Be it a person, an organization. Invoice Aging is the calculation of Unpaid or Outstanding Invoice’s Age. In Oracle Payables this calculation is done using the Invoice Aging standard report.The calculation is represented in Days.

    Where is the Aging report used?

    : It is used to calculate the Due and Overdue days of any outstanding supplier’s or invoice’s payment. Using this aging information the cash outflow is determined. And many other decision can be taken.

    How does the Aging report works?

    : Oracle Payables uses the Invoice Date, Payment Terms and Term Date attached to it for calculating the invoice’s age. GL Date has no effect on the aging.

    Following are the setup steps required to implement Invoice Aging report:

    1) Define Aging Period

    Aging Period is a user defined slabs of days. User can define one to many aging calendars.

    2) Run the Standard Request using the defined aging period.

    Let’s take a scenario to define the Aging Period. Suppose I want to know the payments Overdue by 30 days and payments Due in 30 days i.e. if Today is 1-April then this aging period will display the payments due from 2-March to 1-May. So here is how to define such periods.

    Step 1:

    Navigation: AP>Setup>Calendar>Aging Period

    1) Enter the Name, let’s suppose “Monthly Aging Period”.
    2) Enter the Description(optional), like “30 days due and overdue aging period”.
    3) The Column Order will be by default 1, let it be.
    4) Enter 16 in Days From and 30 in Days To. (Yes, number of days in positive will pick the past due payments)
    5) Give the First Column Heading as 30 – 16 and Overdue in Second Column Heading, though it is optional. These column headings will appear on the aging report.
    6) Go to next row, the column order will be automatically generated.
    7) Enter 0 in Days From and 15 in Days To.
    8) Give the First Column Heading as 15-0 and Overdue in Second Column Heading.
    9) Go to next row.
    10) Enter -15 in the Days From and 1 in Days To.
    11) Give the First Column Heading as Due In and give 1-15 Days in Second Column Heading.
    12) Go to next row i.e 4th or the last row, as the aging report has only four columns.
    13) Enter -16 and -30 respectively in both columns.
    14) Give the First Column Heading as Due In and give 16-30 Days in Second Column Heading.
    15) Save the period.

    Step 2: Now you have run the standard request name Invoice Aging Report. Give the following parameters

    Sort Invoice By:

    Trading Partner: All invoices will be sorted and grouped by Supplier’s Name
    Invoice Type: All the invoices will be sorted by the Invoice Type, like Standard, Prepayments, Credit Memos etc.
    Include Invoice Detail:
    Yes: The invoice information will be displayed in detail like Invoice Number, Due Date, Unpaid%, Amount Remaining.
    No: A summarized view of the
    Include Site Details:
    Yes: The invoices will be categorized supplier site wise.
    No: There will be no site information.
    Minimum Amount Due:
    There is no need to define this parameter. I think the name says it all :)
    Maximum Amount Due:
    There is no need to define this parameter. I think the name says it all :)
    Invoice Type:
    There is no need to define this parameter. I think the name says it all :)
    Trading Partner:
    Due to this parameter I also call this report as Supplier Aging Report.
    Aging Period Name: Give the name of the period of which you want to have the due calculate.
     
  2. amolkatare

    amolkatare Active Member

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    Nice...thanks