Aging buckets are time periods you can use to review and report on your open receivables. For example, the 4-Bucket Aging bucket that Receivables provides consists of four periods: -999 to 0 days current, 1 to 30 days past due, 31-61 days past due, and 61-91 days past due. When you create your Collections reports, you can specify an aging bucket and 'as of date', and Receivables will group the transactions and their amounts in the appropriate days past due period.

You can define an unlimited number of aging buckets and lines (time periods) within an aging bucket. However, all Receivables aging reports include a maximum of the first seven time periods for an aging bucket. If you want to report on additional time periods, you must create custom aging reports. You can also customize the aging buckets that Receivables provides.

Aging buckets that you define here appear as list of values choices in the Print Statements and Print Collection Reports windows. You can make an aging bucket inactive by changing its status to 'Inactive' and then saving your work.

Defining Interest Tiers for Late Charges

Use the Aging Buckets and Interest Tiers window to also define interest tiers that Receivables can use during late charge calculations. Based on ranges of late days, interest tiers let you charge progressively higher interest charges or penalties on a transaction, as a payment becomes more overdue. See: Calculating Late Charges.

To set up and use interest tiers, you must complete these steps:

1. Define interest tiers in the Aging Buckets and Interest Tiers window, using the procedure described below.

2. Assign the interest tier to a charge schedule.

   See: Charge Schedules.

3. Select the charge schedule on a customer's profile class, or at the customer account or site profile level.

   See: Setting Up Late Charges.

To define a new aging bucket or interest tier:

1. Navigate to the Aging Buckets and Interest Tiers window.

2. Enter a Name for this aging bucket or interest tier.

3. Choose the Type of aging bucket you are defining. You can choose from the following types:

   4-Bucket Aging: Use this type to define an aging bucket with four periods. Receivables displays this aging bucket in the list of values when you print the 'Aging - 4 Buckets' report.

   7-Bucket Aging: Use this type to define an aging bucket with seven periods. You can print 7-Bucket Aging reports that sort by either amount or salesperson. Receivables displays this aging bucket in the list of values when you print the 'Aged Trial Balance - 7 Buckets By Amounts' or 'Aging - 7 Buckets By Salesperson' report.

   Credit Snapshot: Receivables displays this aging bucket in the list of values of the Print Collections Report window when you print the Customer Credit Snapshot report.

   Interest Tier: Use this type to define a range of past due days. You assign an interest tier to a charge schedule. Receivables uses the charge schedule during late charge calculations.

   Statement Aging: Use this type to define an aging bucket with five periods. This aging bucket appears on your statements. You can define as many statement aging buckets as you need, but each statement aging bucket must contain five bucket lines, or periods. Receivables displays your active statement aging buckets as list of values choices in the Print Statements window.

4. Enter a Sequence Number to reflect the order in which Receivables prints your aging bucket period. The default is the sequence in which you define each period (for example, the first period you define is '1', the second '2' and so on).

   If you are defining an interest tier, enter the sequence of past due ranges.

   Note: Receivables predefines an interest tier, called Interest Tier, with a single range from 1 to 99999.

5. Enter the Type of aging bucket line you are defining. Choose from the following types:

   Current: Display transactions that are not yet due.

   Dispute and Pending Adjustment: Display transactions that are in dispute and transactions that have pending adjustments in this line. You can only have one line of this type per aging bucket. You do not specify a Days From and Days To past due range for this type.

   Dispute Only: Display transactions that are in dispute with your customer. You can only have one line of this type per aging bucket. If you do not specify a line of this type, Receivables prints disputed debit items in the appropriate aging periods. You do not specify a Days From and Days To past due range for this type.

   Future: Display transactions that will be due in the future. For example, if the current date is April 5 and the due date range for this line is Days From: -10 and Days To: -5, items with a due date between April 10 and April 15 will appear in this line.

   Past Due: Display transactions that have a number of days past due in the range you specify for this line. For example, if Days From is 10 and Days To is 15 for this line, Receivables displays transactions that are between 10 and 15 days past due in this line.

   Note: If you are defining an interest tier, select Past Due.

   Pending Adjustment Only: Display transactions that have pending adjustments. You can only have one line of this type per aging bucket. If you do not specify a line of this type, Receivables prints your transactions that have pending adjustments in the appropriate aging periods. You do not specify a Days From and Days To past due range for this type.

   Attention: You can enter only one Dispute or Pending adjustment line per aging bucket. For example, if you define a line type of Dispute Only, you cannot define a Pending Adjustment Only or Dispute and Pending Adjustments line within this aging bucket.

6. If this line type is Current, Past Due, or Future, enter the starting day number in the Days From field. For example, if this is the first line (sequence 1) and you want to display transactions that are 1 to 30 days past due, enter '1.'

7. If this line type is Current, Past Due, or Future, enter the ending day number in the Days To field. For example, if this is the first line (sequence 1) and you want to display transactions that are 1 to 30 days past due, enter '30.'

8. Enter the column headings to appear in your report above the bucket you are defining. You can enter a maximum of fifteen characters for your column heading.

   For example, you define an aging bucket line for transactions from 1 to 30 days past due. If you enter '1 to 30 Days' in the First Column Headings field and 'Past Due' in the Second Column Headings field, your report heading will print like this:

   1 to 30 Days

   Past Due