What are these reports?
The receivables report shows a list of your customers, the amounts they owe to you, how much of their balance is within the invoice terms and how much is outside of the invoice terms. This report is useful for your credit control, for example when chasing up overdue balances. It is also useful for you to see how much you can expect to receive in the near future from your customers.
The payables report is exactly the same but relates to the amounts you owe to your suppliers.
Viewing and interpreting the reports
To access the reports go to Reports > Receivables or Payables
The below receivables report has been run at a certain date but you can alter this if you want to see how much you were owed at a previous date.
As you can see, each customer is listed with the amounts overdue and how overdue they are.
You can drill down into each customer to see a list of all unpaid invoices and how overdue they are. If we look at Joe Bloggs for example, you can see three invoices make up the balance with one being overdue by 72 days (i.e. 72 days have passed without payment after due date).
If you have a lot of customers with lots of overdue balances it may be difficult to know where to start with your credit control, so this report allows you to order the results according to the headings. So, for example, you can order the data by the customers with the highest balance, or by customers whose balances have been overdue the longest. You can also export the data to Excel and manipulate the data there.
Please note: in order for these reports to be accurate you must have your banking up to date. If you do not then customer receipts or supplier payments may be missing from the report, meaning you may chase up customers in error.
You may also be interested to read about Automatic Payment Reminders to help reduce your receivables balance.