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Accounts Payable Best Practices

Managing cash flow is essential to every business, regardless of its product or service; therefore, companies try to maximize the length of time they can take before paying for goods or services that they have acquired. Many suppliers will allow the purchasing company payment terms of Net 30 days, and offer an incentive to pay earlier, such as 2% discount for payment in 10 days. These payment terms are written as 2% 10, Net 30 days. Other common payment terms are Net 45 days and occasionally Net 60 days.

Tracking these anticipated payments is an important component of daily accounting activities, and the tool utilized for quickly viewing this data is called the Accounts Payable Aging Report. An accounts payable flowchart may also supplement this report. The A/P Aging Report can be viewed in two forms: Detail by Suppler or Summary by Supplier. It is divided up into time "buckets" with amounts due accumulated into columns designated as: Current, 1-30 days, 31-60 days, 61-90 days, and over 90 days, with totals indicated by supplier and in each time category.

Small companies can benefit from using inexpensive accounting software and an accounts payable policy that will generate the required A/P reports from the purchase order entry component.

Sample Accounts Payable Aging Template In Excel Excel
Company Name
Accounts Payable (A/P) Aging Detail
As of (date)


Total 1-30

Total 31-60

Total 61-90

Over 90
Total over 90

Date Inv# PO# Cust Name Terms Due Date Aging (days) Open Balance
Company Name

Accounts Payable (A/P) Aging Summary
As of (date)

Supplier Name

Current 1-30 31-60 61-90 Over 90 TOTAL
TOTAL $ $ $ $ $ $$

Accounts Payable Aging provides this example of an Accounts Payable Aging template in MS Office Word. has free Accounts Payable software to help automate some of your basic accounting tasks.
A brief tutorial regarding Aging Accounts Payable along with an example template. provides a Free printable Accounts Payable Aging template. has a good discussion on how to handle Accounts Payable. has a Free download for an Accounts Payable program.
A good example of an Accounts Payable Aging template in MS Excel.
Download from an Accounts Payable Aging MS Office Excel template to help you get started creating your own form.
Learn from the site about handling Accounts Payable Aging.
Business Owner's Toolkit provides an example of an Accounts Payable Aging Schedule form and describes how to set it up in Excel.

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