When invoices are entered, they are assigned to the current aging period. Although the invoice date is recorded, it is not used directly in invoice aging. Original dates are generated at the time the invoice is entered and may be adjusted at a later date. The Original date defines when the invoice moves from current to being overdue (30 days column). The due date is calculated as one month from the original date. The due date may be a specified number of days after the invoice date, or it may be a specific day in the following month. At the end of each period, or month, the invoices are moved up one aging period. Aging periods are viewed as covering 30 days in reporting, since freeing the aging from calendar constraints simplifies operations considerably. Aging reports stabilize so that period totals are meaningful and can be used for controls. Management can also choose to delay posting an invoice a few days into a later period, without confusing things by entering an artificial invoice date.
In addition, the aging period is independent upon the run date. This allows month-ends to be rescheduled for practical reasons, without complicating the operating environment.