Glossary
What is accounts payable aging?
Aged creditors is a list of what a business owes its suppliers, grouped by how long each bill has been outstanding: not yet due, then bands of days past due. It shows what falls due soon and what is already late.
Also called: AP aging, Aged payables
It is the supplier-side mirror of aged debtors. Read with the cash position, it shows whether upcoming bills can be met and which suppliers are waiting longest. Bills with no due date are shown separately, because they can be neither current nor overdue.
How it is calculated
Each unpaid bill is placed in a band by how far past its due date it is: not yet due, 1 to 30, 31 to 60, 61 to 90 and over 90 days. Totals are shown per supplier and for each band.
Worked example
Example · illustrative figures
| Supplier | Not yet due | 1–30 | Over 90 | Total |
|---|---|---|---|---|
| Supplier A | $3,000 | $3,000 | ||
| Supplier B | $1,800 | $1,800 | ||
| Supplier C | $4,200 | $4,200 | ||
| Total | $3,000 | $1,800 | $4,200 | $9,000 |
Nearly half ($4,200) sits with one supplier in the over-90 band, which may signal a dispute or a cash decision.
How to read it
Read it alongside the cash forecast: the “not yet due” column is committed cash leaving over the next 30 days. Supplier C in the over-90 band may be a dispute, a deliberate delay or simply forgotten.
Common mistakes
- Bills with no due date counted as current when they cannot be placed in any band.
- Ignoring the oldest band: supplier goodwill and credit terms depend on paying on time.
How it shows in Nella
Nella’s Payables role shows aged creditors from your books and names the largest upcoming bills alongside the cash position. See bill checks and AI accounts payable.
Related
Nella provides financial information and education, not accounting or tax advice.
See it on your own numbers
Nella works these figures out from your books every month. Nella Pro is free for 60 days, no card, including the entries you approve posted to your books. After that, Nella Free keeps reading your books, with no time limit.
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