The Accounts Payable (AP) Aging Report is an accounting document that summarizes the total amount of invoices owed by a business to vendors as of a specific date. In the Summary Aging Report, every row is grouped by the vendor and invoice due date; In the Detailed Aging Report, it's broken out at an invoice level.
For both reports, the total amount due is grouped into columns according to how old ("aged") the debt it: Current, < 30 days, 30-60 days, 60-90 days, and 90+ days.
This document can be helpful for a variety of reasons, including:
- Compare Ramp's Aging Report to your accounting system's, in order to reconcile Ramp against your accounting system
- Ability to review the report before payment for possible errors like duplicate invoices
- Forecast accounts payable balances and cash flow in your business plan
- Plan and schedule vendor invoice payment dates for cash flow timing and needed financing
How to download
To download your AP Aging Report, simply navigate to the Bill Pay page (any tab except for "Drafts"), click the three dots and select "Export AP Aging Report."
You will then be prompted to enter an end date for the report. Note the bills included in the report is currently based on the Bill Date - by default, this is the Invoice Date. However, if there is an Accounting Date on the bill, we will use the Accounting Date instead.
The AP Aging report will be downloaded as a ZIP file containing two CSVs, the summary and detailed reports. Users can distinguish the two CSVs by the file name, which will be labeled as follows:
*NOTE: The detailed report will be available for download in November 2023
How we generate our AP Aging Report
- We include all expenses for which 1) the bill date is on or before the end date 2) the expense is still outstanding on or before the end date
- We default to using Invoice Date as the "Bill Date", but if there is an Accounting Date present in the bill, we will use that date instead of the Invoice Date.
- e.g. if I pull a report with an end date 7/31, an invoice date 7/25 and an accounting date 8/1, that bill will not be included because its accounting date falls after the end date.
- The expense is by default aged based off the Due Date, e.g. if your end date is 7/31 and your due date is 7/15, it's considered 15 days old and will fall into the <30 day old bucket.
- We don't include draft bills in our report. We do include both approved and unapproved bills.
- We will not include invoices that have been archived if they have been archived before or on the end date. Otherwise, we will include them in the report.
- We will include invoices created or added to Ramp after the end date, so long as their Bill Date is prior to the end date and they're still outstanding as of the end date.
- Special case: If there is an invoice that has been paid before its Invoice Date and before or on the report's end date, and the Invoice Date is after the end date, then the invoice will be included as a negative expense. This typically happens with rental payments.
- e.g: Your rent of $2,000 is invoiced and due on 8/1. You pay rent on 7/27 and pull the AP Aging on 7/31. The rent will be reflected as -$2,000.
- We reflect this as such because technically during that time period, there is a credit balance owed to the company by the vendor, as the bill has not yet been invoiced but has been paid.
- If you adjust the end date such that the end date falls after the invoice date, the expense will no longer be included.
What we currently don't account for
Below are a list of features that we currently don't offer in our Aging Report, though we may offer these features at a future date.
- The expense is aged based off the Due Date. We don't currently offer the option to age based off other dates, like Invoice Date or Accounting Date.
- We released Credit Memos for QuickBooks Online and Xero in September 2023; we are not yet accounting for this in our AP Aging Report (see Credit Memos)
- We don't currently account for multi-currency. Invoices in currencies that are not USD will be reflected in our report as if they were in USD - e.g. $1000 in AUD will simply be reflected as $1000 in the report.
- For multi-entity businesses, we don't currently offer the report at an entity level.
How to find Aging Report in your ERP
Customers can also find AP Aging Reports within their ERP's.
Instructions for QuickBooks Online customers: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/ap-aging-reports/00/792518
Instructions for Xero customers: https://central.xero.com/s/article/Aged-Payables-Detail-report-New