This article describes how to configure Accounts Receivable aging buckets in Zuora.
Configure Aging Buckets
Before running a trial balance in Zuora, configure your aging buckets to fit your business needs. You can configure aging buckets based on the length of time an invoice has been past due. Zuora Finance uses these aging buckets to generate Accounting Close Aging Balances information when you run a trial balance.
Zuora Finance trial balances include Accounting Close Aging Balance. This balance lists all invoices with open (positive) balances that are either current or past due as of the end of the current accounting period. The aging balance is as of the last date in the accounting period and lists the balances grouped into aging buckets.
Zuora Finance includes accounts receivable aging balance information as part of your accounting period close process. Accounts receivable aging categorizes your company's accounts receivable into different buckets, based on the length of time an invoice has been past due.
To configure the aging buckets
- Click your username at the top right.
- Navigate to Finance Settings > Configure Aging Balance Settings.
By default, Zuora Finance includes six pre-configured aging buckets. You can change these aging buckets or add new buckets. You can create up to 20 aging buckets, but the time ranges must follow these rules:
- The bucket ranges must be contiguous.
- You can leave the first bucket's From field empty. This is equivalent to "negative infinity," and includes dates prior to the beginning of the accounting period. For example, if you leave From empty and enter 5 in the To field in the first bucket, the bucket will include all invoices that are up to 5 days past due.
- You can leave the last aging bucket's To field empty. This makes the last aging bucket open-ended. For example, if you leave To empty and enter 121 in the From field in the last bucket, the bucket will include all invoices that are 121 days or more past due.
- You can enter a negative number (as long as the aging bucket ranges are contiguous). For example, entering -5 means "5 days until an invoice is due." To create an aging bucket that collected all invoices that are 5 days until being due, to all invoices due on the current day, specify the range From
If you change your aging buckets (for example, you originally set it up to go to 90 days, but you want to move it to 120 days), Zuora does not automatically regenerate all of the existing aging reports. You must run a trial balance to regenerate the aging reports, based on the new aging buckets. For closed accounting periods, you must re-open the accounting periods to regenerate the aging reports.