About Aging by Invoice Date vs. Due Date

What's the difference between invoice date and due date aging?

The payment term differentiates when the "aging clock" begins. The due date is the last day of the term — the date that the payment must be received.

If the term begins on...	Then the due date is...
Invoice date (date of sale) Best practice: Invoice date aging is the most effective gauge for the majority of businesses because: The invoice date is a known and fixed point in time beginning on the date of the sale instead of the Due Date. 120 days from Invoice Date is the same as 90 days from Due Date if the payment terms are Net 30.	Invoice date + days in term
Billing date	Billing date + days in term

If the term begins on...

Then the due date is...

Invoice date (date of sale)

Best practice: Invoice date aging is the most effective gauge for the majority of businesses because:

The invoice date is a known and fixed point in time beginning on the date of the sale instead of the Due Date.
120 days from Invoice Date is the same as 90 days from Due Date if the payment terms are Net 30.

Invoice date + days in term

Billing date

Billing date + days in term