Accounts payable aging report

An accounts payable aging report splits what you owe by how overdue it is, and it is the report that turns a balance into a decision. This worksheet builds one from four balances you already have: not yet due, one to thirty days overdue, thirty-one to sixty, and sixty-one and over. It returns the total, the amount overdue, the overdue share as a percentage, the part sitting past sixty days, and days payable outstanding against your monthly credit purchases. Those five numbers are what a controller reads in ten seconds and what an auditor asks for at period end. Nothing here is a benchmark: what a healthy DPO looks like depends on your industry and the terms you actually negotiated, and the sheet has no view on either.

The shape matters more than the total

$48,000 current, $21,000 at thirty days, $9,500 at sixty and $4,200 beyond is $82,700 owed. The total on its own says almost nothing; the split says 42% of it is already overdue, which is a process question long before it is a cash question.

The sixty-plus bucket is the expensive one

$4,200 past sixty days is 5% of the balance and a disproportionate share of the damage: it is where supplier goodwill goes, where credit terms get withdrawn, and where the awkward phone call comes from. It is also the cheapest bucket to fix, because it is small and specific.

Days payable outstanding puts it in context

$82,700 against $82,000 of monthly credit purchases is 30.26 days. Read beside the overdue share it tells you which kind of number you are looking at: rising DPO with a stable overdue share is a payment policy, rising DPO with a rising overdue share is drift.