AR Aging
Age the receivables and show how long customers take to pay, against the bad debt provision.
- General ledger alone
- Compares with last year
- Key analysis in Revenue & receivables
What it checks
- Bands by days past due: current · 1-30 · 31-60 · 61-90 · 90+.
- Band rate: from the entity’s own realisation history, adjusted forward. Derived per engagement, not carried here.
- Any grid of round percentages against these bands is an input to be tested, never the answer.
- Individually significant, disputed and defaulted balances leave the matrix.
How the result is read
Bucket open receivables by days past due, apply a rate per band, and compare the implied provision to the recorded allowance. Ageing runs from the due date, not the posting date — an invoice on 90-day terms raised in November is not overdue. The rates are the substance of the test, so they are derived from the entity’s own loss history rather than assumed.
The worksheet, on the demo engagement
AR Aging, as the application draws it for Harrow Precision Engineering Ltd, the fictional demo engagement — one row per past-due band, plus a row per individually assessed balance.
Buckets darken with age. Intercompany AR is excluded — it is assessed against the counterparty, not by ageing.
- AR in scope (ex-IC)
- 8,940
- Coverage
- 3.6%
- Shortfall
- (1,280)
Aged from the due date, not the invoice date, at the period-end date. Intercompany receivables are excluded and assessed against the counterparty. Loss rates are derived from the entity’s own realisation history on aged balances rather than assumed. Implied provision 1,605 against the 325 recorded on account 1250 — a 1,280 shortfall. Feeds M-03.
Result grid6 rows
| Past-due bucket | AR | Loss rate (derived) | Implied prov. | Recorded | Shortfall |
|---|---|---|---|---|---|
| Current | 2,110 | 0.5% | 11 | — | — |
| 31–60 days | 1,340 | 2% | 27 | — | — |
| 61–90 days | 880 | 8% | 70 | — | — |
| 90+ days | 4,610 | 29.3% | 1,497 | — | — |
| Total | 8,940 | — | 1,605 | 325 | (1,280) |
| Memo: intercompany AR excluded | 900 | n/a | — | — | — |
In the application
AR Aging is filed under Revenue & receivables, index letter C. "Run all analyses" runs it with every other analysis the ledger can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under C, beside an index of the source files with their SHA-256 fingerprints.
Also listed in the application as Collection time
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Read it with
Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required