A receivables ageing report breaks the total amount due from customers into time buckets, typically 0 to 30, 31 to 60, 61 to 90, 91 to 180 and over 180 days, measured from invoice date or due date. It shows which buyers are slipping, which invoices need escalation, and how much is at risk of becoming a bad debt.
How an ageing report works in India
The report is built from the customer ledger. Each unpaid invoice, net of credit notes and part payments, is placed in a bucket according to its age. Unallocated receipts in a running account are usually applied to the oldest invoices first, unless the buyer specified otherwise. The result is a table by customer with a total per bucket.
- 0-30 days: normal, reminders only
- 31-60 days: firm reminders and a call
- 61-90 days: written demand, hold new supplies
- 91-180 days: legal notice, MSME Samadhaan where eligible
- 180+ days: legal action; check the limitation date
Why it matters for getting paid
Recovery gets harder with age. Contacts change, buyers raise afterthought disputes, documents go missing and, after 3 years, the claim may be time-barred. A monthly ageing review stops invoices quietly drifting into the 180+ bucket. It also flags concentration risk: if one buyer makes up most of the 90+ bucket, that buyer needs action now, not another reminder.
How FundRaksha uses it
FundRaksha asks for the ageing report and ledger in the first call, because it shows exactly which invoices need which route. Young invoices go to FundRaksha Collect for reminders and mandates at a 1% fee. Older invoices go to FundRaksha Legal: a notice within 24 hours and a 30% fee only on recovery. Share yours in a free consultation.
Worked example (hypothetical)
A Delhi electrical distributor runs its ageing report by due date:
| Bucket | Amount due |
|---|---|
| 0-30 days | ₹18,00,000 |
| 31-60 days | ₹9,00,000 |
| 61-90 days | ₹6,00,000 |
| 91-180 days | ₹4,50,000 |
| 180+ days | ₹2,50,000 |
| Total | ₹40,00,000 |
Invoices over 90 days total ₹7,00,000, or 17.5% of receivables. Of these, ₹5,00,000 is from a single contractor. The distributor stops further credit to that contractor, sends the 61-90 day buyers a final reminder, and refers the contractor's ₹5,00,000 for a legal notice.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.