Accounts payable ageing schedule

What the accounts payable ageing schedule does

Paying suppliers late costs goodwill, and paying early costs cash. This schedule lists each supplier invoice with its due date and the amount paid so far, works out the balance and how many days it is overdue, and groups the total into current, up to 30 days, up to 60 days and over 60 days, so you can plan payments.

Who it is for

Accounts staff, finance managers and owners who manage supplier payments, and auditors checking the completeness of payables.

How to use the workbook

1. Type today's date at the top.
2. List each supplier invoice with its date, due date and amount.
3. Enter any payments already made against it.
4. Read the balance, the days overdue and the age band, and plan your payment run.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Balance for each invoice
• Days overdue from the due date
• Age bands of current, 1 to 30, 31 to 60 and over 60 days
• Total owed at the top
• Summary of balances by age with a chart

The workbook has these sheets: Instructions, Payables, By age. The main table has the columns Supplier; Invoice no.; Invoice date; Due date; Invoice amount; Paid so far; Balance; Days overdue. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Update the schedule before every payment run.
• Pay on the due date, not before, unless there is a discount for early payment.
• Agree a plan with suppliers early if you cannot pay on time.
• Reconcile the total with your supplier statements each month.

Why keep this record

Accounting records let you answer three questions at any time: what came in, what went out and who owes whom. Kept consistently they also make tax returns, loan applications and the sale of a business much easier, because the evidence is already organised. Entering transactions the day they happen is far cheaper than reconstructing them at year end.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Good accounting records are a legal duty as well as a management tool: keep the supporting receipts and invoices with the workbook, and keep each year's copy for at least five years. Work on a copy, never on your only file, and back it up.

Read how to keep business records for KRA for the wider picture. Free calculators that go with it: Vat return calculator. See more accounting templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Free calculator: VAT Return Calculator
• Guide: VAT invoices and quotations in Kenya: what to include and common mistakes
• Guide: How to use M-Pesa statements to prove income and expenses
• Guide: Bookkeeping for small businesses in Kenya: how to get started
• Another template: Cash flow statement (direct method)
• Another template: Supplier statement reconciliation
• Another template: Weighted average stock ledger

Need something different? Request a custom template, browse all guides or see every Excel template.