An ageing report groups unpaid bills by age. The usual buckets are 0 to 30 days, 31 to 60, 61 to 90, and over 90. The same total can mean very different things: ₹10 lakh owed mostly in the first bucket is healthy trade; ₹10 lakh with half over 90 days is a collection problem.
How to read it
| Party | 0-30 | 31-60 | 61-90 | 90+ | Total |
|---|---|---|---|---|---|
| Tile dealer, Jaipur | ₹1,20,000 | ₹80,000 | ₹2,00,000 | ||
| Tile dealer, Indore | ₹40,000 | ₹60,000 | ₹95,000 | ₹1,95,000 |
The second party owes less but needs a call first.
Why age matters beyond collection
- Old dues are more likely to become bad debts.
- Bankers look at ageing when they set working capital limits.
- On the payables side, dues to registered micro and small suppliers beyond the time allowed under the MSMED Act carry interest, and income tax allows the expense only in the year it is paid (section 37(2)(g) of the Income-tax Act, 2025, earlier section 43B(h)), as of October 2026.
Review ageing weekly, with the person who will make the calls.