Why is your Accounts Receivable balance not matching the Aged Receivables report?

When comparing your Aged Receivables report with the balance in your Accounts Receivable account, you may sometimes notice a discrepancy. This article covers some of the common reasons why these balances may not always match.

What is the Aged Receivables report?

Aged receivables is a report in Wave that shows you the amount owed to you by your customers. This report is generated based on your invoices and the due date that you set for each invoice. The invoice amounts on the report are separated by customer name and the number of days the invoice has been overdue. The Total Unpaid column on the report totals the unpaid invoices for each customer and displays the overdue amount separately. At the bottom of this column, you will be able to see the total unpaid as well as the total overdue amount from all your invoices.

What is the Accounts Receivable account?

Accounts Receivable is an asset account that represents the money your business is owed. When you create an invoice in Wave, the Accounts Receivable account is debited, increasing the balance in the account. When you record a payment for an invoice, the Accounts Receivables account is credited, decreasing the balance in this account. To see the list of all transactions under the Accounts Receivable account, click on Reports on the left navigation menu in your Wave account and select the Account Transactions (General Ledger) report. Select Accounts Receivables as the account to view a list of all transactions under the account.

Should the Aged Receivables report always match the balance in the Accounts Receivable account?

The Total Unpaid amount on your Aged Receivables report may not always match the balance in the Accounts receivable account.

  • The Aged Receivables report only takes into account unpaid invoices. If you have recorded an overpayment on an invoice, this will not reflect on your Aged Receivables report. The overpaid invoice will not appear on the report anymore and the overpayment will not be reduced from the total unpaid amount. On the other hand, the Account Transactions report for the Accounts Receivable account will show you the exact payment made even if the invoice is overpaid. This will result in different balances when comparing these values.

    To check if you have an overpaid invoice, navigate to Sales > Invoices, and filter for paid invoices by selecting the status filter ‘Paid’. if you see an amount in brackets for any invoice under the Amount Due column, the invoice was overpaid. It is recommended to follow these steps to account for overpayments when you have an overpaid invoice.

  • It is possible to categorize transactions to the Accounts Receivable account or use this account when creating journal transactions. If you may have used this account in your transactions, this can also be a reason for the balances being different. Use the Account Transactions report to review all the transactions under the account to understand how the balance is calculated.