All 21 Aging Analysis questions
More in Aging Analysis
How do you reconcile the aging report to the general ledger control account? What red flags can an aging report reveal? What is 'best possible DSO' and how does it differ from standard DSO? How does disputed AR distort aging and what should you do about it? How does aging drive the allowance for doubtful accounts under the aging method? What is CECL/expected credit loss and how does it change receivables provisioning? How can automation and analytics improve aging management? How can you forecast cash collections from an aging report? How do you use aging trends to set collection targets and staffing?
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Accounts Payable & Receivable › Aging Analysis

How does aging support inventory of unapplied credits on customer accounts?

Intermediate

Answer

Aging can include credit balances and unapplied cash, not just debits. Surfacing aged credits ensures they are applied to open invoices or refunded rather than forgotten, which otherwise understates what customers really owe and can create unclaimed-property (escheatment) obligations for very old credits.
Real-world example An aging review finds a two-year-old $900 customer credit that is applied to open invoices instead of sitting idle.

Common follow-ups: Why track aged credit balances? | What is escheatment?

Cash Application Reconciliations Aging Analysis
All 21 Aging Analysis questions