Past-due receivables

Past-due receivables include all invoices whose due dates have passed and that remain unpaid. This is the portion of receivables that is already past due.

Example

Of the €50,000 in outstanding balances, €12,000 corresponds to invoices that are 10 to 60 days past due. The past-due balance is therefore €12,000, or 24% of the total outstanding balance.

Why It’s Important

These are the invoices that should be followed up on first. The older they are, the harder they are to collect. The proportion of past-due invoices in the total outstanding balance is a good warning sign.

To learn more: Read and analyze the aging report and best practices for customer collection.

See also: outstanding balances, unpaid invoices, aging report.