Analysing ageing periods can help you monitor your receivables and payables, including tracking due dates for invoices and overdue payments.
1 Jul 10
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22 Jul 10
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14 Jul 10
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4 Aug 10
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2 Jul 10
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2 Jul 10
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Footloose Dance Studio
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30 Apr 10
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30 May 10
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Footloose Dance Studio
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12 May 10
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11 Jun 10
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Footloose Dance Studio
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29 Jun 10
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29 Jul 10
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Footloose Dance Studio
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30 Jun 10
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30 Jul 10
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Footloose Dance Studio
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6 Jul 10
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5 Aug, 10
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Footloose Dance Studio
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21 Jul 10
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20 Aug 10
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26 May 10
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7 Jun 10
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10 Jun 10
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7 Jul 10
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Assume you age invoices monthly and identify your ageing periods by month names. If you age these invoices by invoice date using any date in July 2010, the invoices will be aged as follows.
Footloose Dance Studio
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Assume you identify your ageing periods by month numbers. The results above would be the same, but with different headings, as follows:
Footloose Dance Studio
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In this example, each ageing period represents the number of months by which the invoices assigned to the period are overdue.
If you were to age the transactions based on their invoice terms, the results would be similar; however, your report would show the month in which the invoice falls due.
Footloose Dance Studio
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If you were to age the example transactions based on their invoice terms and using month numbers, the results would look like this:
Footloose Dance Studio
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