# How to Calculate Aging of Accounts Receivable in Excel

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Excel is the most widely used tool for dealing with massive datasets. We can perform myriads of tasks of multiple dimensions in Excel. In this article, I will show you how to calculate the Aging of Accounts Receivable in Excel.

## Introduction to Aging of Accounts Receivable

Aging of Accounts Receivable is a report that details how long an invoice has been unpaid. It is useful in determining the allowance for doubtful accounts. There are some segments in the report (often 0-29,30-59, and so on), and organizations record receivable collections according to the segments. This report is the primary tool that collection personnel uses to identify which invoices are overdue for repaying.

## Calculate Aging of Accounts Receivable in Excel: 3 Easy Methods

This is the dataset for today’s article. There are some orders with due dates and amounts. I will calculate the Aging of Accounts Receivable using this dataset. ### 1. Apply IF Function to Calculate Aging of Accounts Receivable in Excel

In the first method, I will show you how to calculate the aging of accounts receivable using the IF function. Let’s do this step by step.

Steps:

• First of all, calculate the Days Overdue. To do so, go to F7 and write down the following formula
`=\$C\$4-E7`
• Then, press ENTER to get the output.
• Change the format to Number. • After that, use Fill Handle to AutoFill up to F22. • Now, to get the aging status, go to H7 and write down the following formula
`=IF(F7>90,"90+ Days",IF(AND(F7>=60,F7<=90),"60-90 Days",IF(AND(F7>=30,F7<=59),"30-59 Days",IF(AND(F7>0,F7<=29),"1-29 Days","Not Due"))))` Formula Explanation:

The logical tests are

• F7>90
• AND(F7>=60,F7<=90)
• AND(F7>=30,F7<=59)
• AND(F7>0,F7<=29)

For F7 (108), the first test is TRUE. So, the corresponding output is 90+ Days.

• Now, press ENTER to get the output. • Finally, auto-fill up to H22. ### 2. Use VLOOKUP Function to Calculate Aging of Accounts Receivable in Excel

Now, I will show another method. This time, I will use the VLOOKUP function. But, for this method, you have to modify the dataset a bit. Steps:

• Now, it’s easy. Go to H12 and write down the formula
`=VLOOKUP(F12,\$F\$5:\$G\$9,2,TRUE)` Formula Explanation:

• Excel will look for F12 in the array F5:G9.
• TRUE indicates that the match is an approximate one, not the exact one.
• 108 is the closest to 90. So the return is 90 or More.
• Then, press ENTER to get the output. • After that, use Fill Handle to auto-fill up to H27. ### 3. Apply PivotTable Feature to Calculate Aging of Accounts Receivable in Excel

Now, I will show another method to calculate the aging of accounts receivable in Excel. This time, I will use the PivotTable feature.

Steps:

• Select the entire table.
• Then, go to the Insert
• After that, select PivotTable.
• Finally, choose From Table/Range. • A box will appear. Excel will automatically set the range.
• Click OK. • As a result, Excel will create a PivotTable. • Then, from the PivotTable Fields, drag Customer ID to Rows, Days Overdue to Columns, and Amount to Values.
• Excel will by default show the sum of the amount. • After this, you will get the following output. • Now, to get the aging of accounts receivable, you have to group the Days Overdue.
• To do so, select any cell from the row representing the Days Overdue.
• Then, right-click your mouse to get the context bar.
• After that, select Group. • A Grouping box will appear.
• Write 0 as the starting point.
• Then, keep 307 as the ending point.
• And, 30 as the grouping range.
• Finally, click OK. • Excel will return the aging of the accounts receivable. Read More: How to Do Aging Analysis in Excel

## Conclusion

In this article, I have explained how to calculate the aging of accounts receivable in Excel. I hope it helps everyone. If you have any suggestions, ideas, or feedback, please feel free to comment below.

## Related Articles Akib Bin Rashid

Hi, this is MD Akib Bin Rashid. I completed my BSc in Engineering back in 2019. After that, I did an MBA. Then, I joined as an Excel and VBA Content Developer at SOFTEKO Digital. Being passionate about data analytics and finance, I will try to assist you with Excel

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