Accounts receivable and aging

Accounts receivable is the amount that counterparties owe your company for services rendered but not yet paid for. In LogiFlow it is covered by the Analytics → Debt aging (Accounts receivable) report.

Access

Analytical reports, including debt aging, are available to the administrator and the head. A client sees their own operations but not the consolidated receivables report. The section is unavailable to managers and warehouse workers.

Receivables and payables: the difference

Notion	What it is	How it looks in operations
Receivable (owed to us)	The counterparty owes the company	Posted outgoing bills (document type "Bill", direction "Outgoing") that are not closed by payments.
Payable (owed by us)	The company owes the counterparty	Posted incoming bills ("Bill", "Incoming") that are not closed by payments.

The "Debt aging" report covers receivables only

The aging report counts exclusively accounts receivable (outgoing bills). Accounts payable are not included in it.

How accounts receivable arise

1. We rendered a service to the client and created an outgoing bill (document type "Bill", direction "Outgoing").
2. The bill is posted — it became an obligation of the client (their balance goes "into the minus" by the bill amount; see the sign of the balance).
3. A payment arrives from the client (document type "Payment", "Incoming") and is linked to the bill. As the linking proceeds, the bill's "document balance" decreases.
4. When the bill's "document balance" reaches zero, the bill counts as paid and drops out of receivables.

In other words, receivables consist of posted outgoing bills that still have an unclosed "document balance" (the bill is not fully paid yet). More about allocation — in Financial operations.

A prepayment is an overpayment

If the client paid more than they owe, their overall balance becomes positive — that is a prepayment (we owe the client). See Accounts and balances.

Aging

Not all debt is equally problematic: a debt whose due date has not yet arrived is normal; a debt hanging for 3 months past its due date is a problem. The aging report groups unclosed bills into buckets according to how overdue they are (by how many days the bill payment date is overdue relative to today's date).

Bucket	What it means
current (not yet due)	The payment date has not arrived yet — this is not an overdue debt.
1–30 days	Overdue by up to a month. A fresh debt, within normal working limits.
31–60 days	Worth reminding the counterparty.
61–90 days	Active work required: calls, formal claims.
90+ days	Problem debt, legal action is possible.

Buckets are based on how overdue the bill is, not on the "age of the bill"

The bucket boundary is determined by the number of days overdue = today − the bill payment date. A bill whose due date is still ahead falls into the current bucket and does not count as overdue.

For each bucket the report shows the amount and the number of bills, as well as the top debtors (up to 5 counterparties with the largest amounts) with the maximum days overdue for each. This helps to prioritise the work: deal with the oldest and largest debts first.

DSO metrics

The report shows two related metrics (both in days):

1. Classic DSO (average collection period)

DSO estimates how many days on average pass from the bill date to its payment. In LogiFlow it is calculated as the amount-weighted average collection period of receivable bills over the last 90 days:

DSO = Σ(bill amount × days to payment) / Σ(bill amount)

where "days to payment" is:

• for paid bills — the date of the last linked payment minus the bill date;
• for unpaid bills — today's date minus the bill date (this slightly overstates DSO — a known simplification).

The larger the bill amount, the more strongly it influences the average (weighting by amount).

2. Average age of the outstanding balance

An additional metric — the amount-weighted average age of the outstanding balance (by the days overdue of the currently unclosed bills). It shows how "old" the outstanding receivables are on average right now.

DSO benchmarks

• 30 days — on average clients pay in about a month.
• 60 days — two months, a warning sign for collectability.
• 90+ days — a serious problem, time to revise the credit policy.

What counts as normal depends on the industry; for logistics the usual benchmark is 30–45 days.

Multi-currency in the report

Receivable amounts and DSO are converted to the selected currency (the company's base currency by default). If the company has no base currency set, the report will ask you to choose a currency. Conversion is done at the rates from the currencies reference data; if there is no rate for the required date, the report may warn about an incomplete conversion. See Accounts and balances → Exchange rates.

How to use the report

1. Open Analytics → Debt aging.
2. If needed, select the currency of conversion.
3. Look at the total receivables, their distribution across the buckets and the top debtors.
4. Assess DSO and the average age of the outstanding balance.
5. Go to the operations of a specific counterparty (through the Finances section with a counterparty filter) to see the specific unpaid bills.

The report shows an "as of now" snapshot

Aging is built as of the current moment (today's date) and does not support selecting an arbitrary past period. The 90-day window is used only for calculating classic DSO.

Working with problem debt

A typical procedure (to be adjusted for your company):

1. current / 1–30 days — monitoring, no active steps.
2. 31–60 days — a gentle reminder (an email, a call).
3. 61–90 days — a formal reminder letter referring to the contract.
4. 90+ days — a formal claim, freezing further shipments, handing over to lawyers.

LogiFlow helps in this process:

• Notifications on events and due dates — configured by the administrator (see Notifications).
• Viewing a counterparty's specific bills through the filters of the Finances section.
• Exporting operations to hand over to the accounting department or to lawyers (see Bulk operations).

What's next

• Analytics glossary — definitions of the other metrics.
• Financial operations — how to create bills and payments and link them.
• What "posting" means — why only posted bills land in receivables.
• Notifications — automatic debt reminders.