Transaction Aging
This analytic test is used to create a transaction aging report. This analytic can be applied to a wide variety of data (e.g. Accounts Receivable Aging by Customer, Accounts Payable Aging by Vendor, Inventory Aging by Item etc.)
Transaction aging reports are used by managers to highlight items that have been outstanding for various periods of time, and they assist managers in making payment decisions (in the case of accounts payable data), collection decisions (in the case of accounts receivable data), and sales or write-off decisions (in the case of inventory data).
Transaction aging analytics are used by auditors to recalculate the aging data provided by subledger systems. Aging analytics are also used when the subledger system does not offer an aging report.