---
id: balances
title: "Balances & Aging"
description: "Review Accounts Receivable and Payable aging, customer statement balances, and tax liabilities."
category: "Finance"
order: 24
resource: "finance"
action: "read"
routes:
  - "/balances/customers"
  - "/balances/suppliers"
  - "/balances/tax"
tags: ["balances", "aging", "ar", "ap", "statements", "tax", "finance", "credit-control"]
fields:
  current_balance:
    title: "Current Balance"
    summary: "Invoices within standard trading terms (due date >= as-of date)."
  aging_30_days:
    title: "1–30 Days Overdue"
    summary: "Invoices overdue by 1 to 30 calendar days."
  aging_60_days:
    title: "31–60 Days Overdue"
    summary: "Invoices overdue by 31 to 60 calendar days."
  aging_90_days:
    title: "61–90 Days Overdue"
    summary: "Invoices overdue by 61 to 90 calendar days."
  aging_90_plus:
    title: "90+ Days Overdue"
    summary: "Delinquent invoices overdue by more than 90 calendar days."
  unallocated_credits:
    title: "Unallocated Credits"
    summary: "Unapplied customer payments and open credit notes reducing total ledger exposure."
related:
  - "customers"
  - "suppliers"
  - "payments"
  - "general-ledger"
  - "reconciliations"
---

# Customer, Supplier & Tax Balances

The **Balances** module provides debtor and creditor aging reports, allowing credit controllers and finance teams to audit cash flow, overdue balances, and net statutory tax liabilities.

---

## Aging Buckets & Tax Position Calculations

```mermaid
flowchart LR
    A[Total Open Subledger Balance] --> B[Current: Due Date >= As-Of Date]
    A --> C[1-30 Days Overdue]
    A --> C2[31-60 Days Overdue]
    A --> D[61-90 Days Overdue]
    A --> E[90+ Days Overdue]
    U[Unallocated Credits / Payments] -.->|Offset Oldest Buckets| A
```

### 1. The Aging Bucket Classification Algorithm
For every open invoice in Accounts Receivable and Accounts Payable:

```
Days Overdue = max(0, asOfDate - invoiceDueDate)
```

* **Current**: `invoiceDueDate >= asOfDate` (within agreed commercial payment terms).
* **1–30 Days**: `1 <= Days Overdue <= 30`
* **31–60 Days**: `31 <= Days Overdue <= 60`
* **61–90 Days**: `61 <= Days Overdue <= 90`
* **90+ Days**: `Days Overdue > 90` (triggers strict credit hold warnings).

### 2. Treatment of Unallocated Credits & Prepayments
* Unapplied customer payment deposits and unallocated credit notes are credited against the account's total exposure.
* In standard aged debtors reports, unallocated credits offset the **oldest aging buckets first**, ensuring overdue flags reflect genuine delinquency.

### 3. Net Tax Liability Equation
The tax balance summary aggregates all posted GST / VAT tax groups over the active reporting period:

```
Net Tax Payable / (Refund) = Total Output Tax (Sales Invoices) - Total Input Tax (Supplier Bills)
```

* If `Output Tax > Input Tax`, a net liability is owed to the revenue authority.
* If `Input Tax > Output Tax`, a net refund is claimable.

---

## Step-by-Step Workflows

### 1. Generating and Emailing a Customer Statement
1. Go to **Finance** → **Balances** → **Customers** (`/balances/customers`).
2. Search for the debtor account.
3. Review their aging breakdown, open invoices, and unallocated credits.
4. Click **Statement PDF** to generate an official branded PDF statement or click **Email Statement** to send it directly to the customer's billing contact.

### 2. Auditing Supplier Aging
1. Go to **Finance** → **Balances** → **Suppliers** (`/balances/suppliers`).
2. Review upcoming payment obligations by due date bucket to schedule weekly payment batches.

---

## Field Reference

| Field | Description |
| :--- | :--- |
| **Total Balance** | Total net ledger balance across all open documents. |
| **Current** | Unpaid balance within agreed payment terms. |
| **1–30 / 31–60 / 61–90 / 90+ Days** | Standard overdue aging columns. |
| **Unallocated Credits** | Open credit notes and prepayments not yet allocated to specific bills. |
| **Net Tax Position** | Statutory tax liability (`Output Tax - Input Tax`). |