Know Your Accounts With Dynamics NAV Aging Reports

Know Your Accounts With Dynamics NAV Aging Reports

Before digging down the functionality, it is important to know the ways these reports support your business and organizational operations. Delivering a snapshot of the money outstanding and due to you by your
customers, these reports help you identify potential issues with customers’ payments to your business. Particularly, you can gain greater visibility into a particular balance, transaction, system information, and customer flexibility.

Microsoft Dynamics NAV offers the extensible capability of Accounts Receivable Aging Report and Accounts Payable Aging Reports to show how much you are owed at any point by your customers and vendors respectively.

You can use these reports to track:

  • The amount your customers/ vendors owe you
  • The duration you have been owed the amount by your customers or vendors
  • The particular customer or vendor who owe you the most money
  • Due dates for sales invoices

In general, a typical Accounts Receivable Aging Report has 6 columns:

Name of the customer with A/R BalanceTotal Amount
Due
Amount due for sales made in the current monthUnpaid amount due
for sales in the previous month (1 to 30 days past due)
Amounts due for sales made
two months prior (31 to 60 days past due)
Amount due of
accounts over
60 days past
due

Although the time bucket goes for 61 to 90 days and older than 90 days, any invoices past the 30 days mark are worthy enough of raising a red flag.

In like manner, An Accounts Payable Aging report shows all unpaid bills. Leveraging core capabilities of Dynamics NAV, you can use this report to identify individual bills owed each vendor, the age or exact number
of days past due of each bill, the open balances for each vendor and a grand total for all vendors. Given the permission to access the Accounting Preferences page, administrators can choose to age bills and invoices by
due dates or transaction dates.

These Aging Reports are customizable includes the following sections:

  • Vendor — The legal name of the vendor with the balance owed, itemized by transaction, and then summed. Entries grouped under No Vendor are Journal Entries.
  • Transaction Type — bill, deposit, expense report
  • The number of the transaction, specific to the transaction type.
  • Due Date
  • Age or the number of days the amount owed is past due.
  • The amount owed itemized by transaction and grouped by vendor total.

In general, these reports contain invoices (unpaid), however, they often contain Credit Memos, which have not been used by customers or matched up against an unpaid invoice. You can use these reports to estimate potential bad debts and revise the allowance for doubtful accounts. Moreover, the credit department of your business organization can use these reports to view the current payment status of any outstanding invoices and change customer credit limits if required.

Interestingly, these reports can be scheduled for specific roles, including auditors to confirm year‐end activities and can be extracted through excel as well.

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