Use this activity to modify and view the start day, end day, or aging methods of aging buckets used in Accounts Receivable and analyses. This mandatory task is to be performed by a system administrator or equivalent person if using credit management.
Aging buckets show the value of outstanding invoices of particular ages. The age of an invoice is based on one of several aging methods. Aging can be viewed according to the following: Installment due date, installment due date excluding invoice lines with exception codes, invoice date, or invoice date excluding invoice lines with exception codes. If there are invoice lines with exception codes, the system will reduce the amounts of these invoices from the total invoice amount which has qualified for an aging bucket. Six predefined buckets are created at creation of a company.
You cannot add or delete any of the buckets or add aging codes. You can redefine day range per bucket and also specify a different aging method per bucket. This means that you can redefine the day range for all six buckets to use one aging method, or you can redefine two buckets for each of three aging methods or any other combination of buckets and methods.
Beyond the limitations of the six buckets and four methods, there can be no day range overlap in the buckets defined for a given method. Thus, for the same method, two buckets of 1-30 days and 31-60 days would be valid. Buckets of 1-30 days and 30-60 days would not be valid because of the day 30 overlap.
This activity has the following prerequisites:
As a result of this activity:
Credit Management Basic Data/Aging Bucket
Credit Management Basic Data/Aging Bucket
To perform this activity, follow these steps: