Glossary Accounting
Ageing
Definition
Ageing sorts unpaid bills by how many days old or overdue they are, so you can see which dues are fresh and which are getting hard to collect.
Ageing is the sorting of unpaid bills by how old they are, usually into buckets such as 0–30, 31–60, 61–90 and over 90 days, to show which dues are getting stale.
Example
Gupta Electricals owes ₹1,50,000: ₹90,000 billed 12 days ago and ₹60,000 billed 95 days ago. The total looks fine, but the ageing report puts ₹60,000 in the over-90-days bucket, so that bill gets a call and a statement before any new credit is given.
Ageing in TallyPrime and in Cashflow OS
Where to find itIn TallyPrime
TallyPrime's bills receivable and bills payable reports can be viewed age-wise, with ageing periods you choose. It works only when party ledgers keep bill-wise details.
On your phoneIn Cashflow OS
Cashflow OS shows receivables and payables with ageing from the synced Tally data, party by party and bill by bill, on phone and web.
See Outstanding receivables
Common misunderstandings
- Watch outReading only the total due and ignoring how much of it sits in the 90+ days bucket.
- Watch outLeaving receipts on account, so old bills keep showing as unpaid in the ageing report.
Why ageing matters
Two customers can owe the same amount and be very different risks. One owes ₹1,00,000 from last week's bill; another owes ₹1,00,000 from bills five months old. Ageing makes that visible. The older a bill gets, the harder it usually is to collect, so ageing tells you where to spend collection effort, which customers to stop supplying on credit, and which balances may need a provision.
Example
| Customer | 0–30 days | 31–60 | 61–90 | 90+ | Total |
|---|---|---|---|---|---|
| Arora Traders | ₹80,000 | ₹20,000 | ₹0 | ₹0 | ₹1,00,000 |
| Bansal Agencies | ₹10,000 | ₹15,000 | ₹30,000 | ₹45,000 | ₹1,00,000 |
| Total | ₹90,000 | ₹35,000 | ₹30,000 | ₹45,000 | ₹2,00,000 |
Both owe ₹1,00,000, but ₹75,000 of Bansal's dues are over 60 days. That account needs a call and a statement this week, and perhaps a hold on new credit. Our guide to ageing analysis explains how to act on each bucket.
Ageing by bill date or due date
Ageing can count from the bill date or from the due date (bill date plus credit days). Counting from the due date shows what is truly overdue; counting from the bill date shows how long money has been out. Pick one and use it consistently, and tell your team which one the report uses. Customers often argue about overdue days, so a statement that shows both bill date and due date avoids most disputes.
Where it shows up in TallyPrime
TallyPrime has ageing analysis on its bills receivable and payable reports, with ageing periods you can set. It needs bill-wise details on party ledgers; payments not linked to bills distort it. Cashflow OS shows ageing on receivables and payables from the synced Tally data, on phone and web. See bill-wise details.
Related terms
OutstandingBill-wise detailsLedgerWorking capitalAll terms A–Z
Questions about Ageing
What ageing buckets should I use?
Is ageing used for payables too?
Why does my ageing show old bills that were paid?
Should I age bills from the bill date or the due date?
What should I do about bills over 90 days old?
This page is general information for Indian businesses, not tax, legal or financial advice. Rules and rates change — check the official portals or your CA before acting.
